Small business collections
Collection agency for small businesses.
Unpaid invoices hit a small business harder than a large one. Tell us about your past-due accounts and we'll introduce you to collection agencies and attorneys that take on small-business accounts. Free, no obligation.
When a small business should use a collection agency
Many owners wait too long, partly because chasing customers is uncomfortable. Common triggers for placing an account:
- The invoice is 60–90+ days past due and reminders have been ignored
- The customer has stopped answering, or keeps breaking payment promises
- The customer disputes the invoice without a real basis
- You hear the business is closing, moving or in financial trouble
Recovery generally gets harder as debt ages, so acting sooner tends to help. See when to send an invoice to collections.
What it costs
Most agencies work on contingency, so you pay a percentage of what is collected and typically nothing if nothing is recovered. Rates depend on debt age, balance and volume. Small, older balances usually cost more as a percentage. Some agencies also offer low-cost flat-fee letter programs for fresh accounts. Details are in how much collection agencies charge.
Try these steps first (they're free)
- Send a clear reminder with a copy of the invoice.
- Call and ask for a specific payment date or plan.
- Send a final notice letter with a firm deadline.
- If your contract allows it, calculate any late fee or interest accurately.
- Send a formal demand letter, then place the account.
How to choose an agency
- Experience with your customer type: business customers (B2B) or individuals (consumer)
- Licensing and bonding where your state or the debtor's state requires it
- Clear contingency rates in writing, with no surprise fees
- Trust-account handling and a regular remittance schedule
- Access to attorneys if suit becomes necessary
- A professional approach that protects your reputation with the customer
Our checklist: how to choose a collection agency for a small business.
What to have ready
Invoices, the signed contract or accepted quote, proof of delivery or completed work, statements, correspondence and the customer's contact details. More in what to prepare before placing an account.
Not legal advice. This page is general information, not legal advice, and laws vary by state and change over time. CollectionPlacement is a referral service, not a law firm or collection agency. Consult a licensed attorney about your situation.
How it works
Three steps to placement
One short form replaces calling a dozen agencies.
Tell us about the debt
Debt type, total balance, age, number of accounts and location. Takes about two minutes.
We match you
We review your file and introduce you to agencies or collection attorneys that handle your debt type, size and jurisdiction.
You choose and place
Compare terms (contingency rates, fees, reporting) directly with the partner and place only if it's a fit. No obligation.
Trust & compliance
How we approach compliance
FDCPA-aware
Consumer and medical accounts are only referred to partners that represent they comply with the Fair Debt Collection Practices Act, Regulation F and applicable state law.
Vetted partners
We check licensing/bonding where required, attorney bar status, and complaint history before adding a partner to our network.
No pressure, no obligation
Matching is free for creditors. You negotiate terms directly and decide whether to place.
Your data, handled carefully
We only share your file with the partners we introduce you to.
Frequently asked questions
Is there a minimum balance for small business collections?
Our matching service has no fixed minimum, but individual agencies may. Very small balances may be priced higher or handled through a flat-fee letter program.
Will using a collection agency hurt my customer relationships?
It can end the relationship with a non-paying customer, which is often already damaged. Choosing a professional agency and sending a clear final notice first helps keep it businesslike.
Can I still collect if the customer is in another state?
Yes. Many agencies collect nationwide and work with attorneys in the debtor's state if suit is needed.
Do I pay anything up front?
Under a pure contingency agreement, typically no. Some programs or legal steps involve fees or costs, so confirm in writing.
What happens if the agency can't collect?
The agency may recommend closing the account, forwarding it to an attorney for suit, or another strategy. You decide whether to proceed.
Free, no obligation
Get matched with a collection partner
Tell us about your receivables. We'll review and introduce you to vetted agencies or collection attorneys suited to your debt type, size and state.