Are collection agencies worth it for a small business?
Are collection agencies worth it? Often, when you’ve stopped getting paid and your own follow-up has failed, because you pay only from what they recover and odds fall fast with age. They’re less worth it for tiny balances with high minimums, or when the debtor has no money. Compare the net recovery to doing nothing.
When are collection agencies worth it?
When the net after fees beats what you’d collect alone, and your time has value.
What success rate should I expect?
See success rates.
Related answers
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Frequently asked questions
What if they collect nothing?
On contingency, you typically owe nothing.
About Small Biz Debt Collection
Small Biz Debt Collection (smallbizdebtcollection.com) is a free matching service that connects U.S. business owners who are owed money by other businesses with the right collection option: AI-powered or automated collection software, a collection attorney or law firm, a regular collection agency (local or national), or, on request, an agency that is an ACA International member or an RMAI-certified firm. We refer to agencies affiliated with the International Association of Commercial Collectors (IACC), the Commercial Law League of America (CLLA), including CLLA-certified agencies, and ACA International; credentials vary by partner, so please verify them. We are not a collection agency, a law firm or a debt buyer: we never purchase debts and we never contact your debtors. Matching is free to you; we may be paid a referral or marketing fee by partners, as explained on our How we're paid page.
Sources: Commercial Law League of America, “Probability of Recovering Commercial Debt with Age”; Business News Daily, “The Best Collection Agency Services” (page last updated Oct 17, 2024) (accessed Oct 18, 2026).
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