Right off the start, let’s clarify: any and all businesses that have a sizeable amount of outstanding debt will benefit from the services of a debt collecting agency like Gilliam & Mikula. That said, certain types of business models have the greatest need… and see the highest returns.
We find that B2B and B2C businesses need our services the most. Let’s takes a look at why!
Business to Business (B2B)
When it comes to B2B businesses, collecting on outstanding debt isn’t just a nice boost to your ROI… it can make or break your business. The majority of B2B businesses work with a smaller number of clients – but each client can have a massively increased amount of debt on their account. For example, when a B2C agency’s customer isn’t able to pay, they might lose $10 to $20 bucks. When a B2B agency’s client doesn’t pay – they might be losing $10 to $20 million.
Additionally, when dealing with another business, the likelihood that they’ll have or seek legal representation is much higher. That means without legal debt collection representation of your own, you are much less likely to collect and/or will likely not collect as much as you should.
Examples of B2B Companies We’ve Worked With:
- HVAC companies
- Electrical companies
- Medical and dental offices
- Alarm system companies
- Homeowners associations
- Masonry and stone companies
- Cash title loan companies
- property management companies
All of the businesses in the above examples would be devastated from a financial and operational standpoint if they weren’t able to collect from their clients. When so much rides on so few clients paying up on time, a debt collecting agency is a B2C’s best insurance policy.
Business to Consumer (B2C)
The B2C business model is all about selling products directly to their customers. The relationship between amount of clients and average ticket size is the inverse of a B2B model: IE, a B2C company will have hundreds or thousands of times more customers, but the debt those customers accumulate is much smaller on average.
However, the sheer volume of customers that might owe a B2C company money can be daunting; so daunting that unless the business hires a debt collecting agency, they simply won’t be able to collect.
A debt collecting agency will have the systems, resources and manpower to pursue what you’re owed from all of those customers… and will have a much higher rate of return than if the business owner or someone internal is forced to take on the task.
Examples of B2C Companies We’ve Worked With:
- Medical Groups
- Dental Practices
- First Care Providers
- Many more
When you hire a debt collecting agency like Gilliam & Mikula, your B2C business can focus on generating new billing rather than chasing down delinquent accounts. That alone makes it worth the retainer!
Does Your Business Need the Help of a Debt Collecting Agency? Get in Touch!
B2B and B2C businesses are the most common types of businesses. They are also the types of businesses that need the most help from debt collecting agencies. However, as we said in the intro – any business that isn’t getting paid what they’re owed can benefit from the services we provide.
If you’re ready to get paid what you’re owed, contact us! Fill out the form below and we will contact you back shortly.
Gilliam & Mikula, PLLC, is centrally located in Richmond, Virginia, and serves clients throughout the Commonwealth of Virginia. Our attorneys have over forty years of combined experience in various practice areas, representing individuals and businesses. We are licensed to practice in all General District Courts and Circuit Courts of the Commonwealth of Virginia including, Central, Tidewater, and Northern Virginia areas.
The attorneys at Gilliam & Mikula are here to smoothly guide you through the “legal maze” and ensure that you achieve the most favorable outcome.
The information provided on this website does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information.