Can I hire a collection agency to collect a debt that’s small?
You can often hire a collection agency to collect a debt even when the balance is small.
Many will. Business News Daily reports that most collection agencies will collect debts over $50, though minimums vary by agency. For a single small balance, doing it yourself or small claims court may make more sense; if you have several small past-due accounts, placing them together with one agency is often worthwhile.
Tips before you hire a collection agency to collect a debt that’s small
- Ask about minimum balances and flat-fee letter services[source].
- Group several accounts for better terms.
- Send a demand letter first.
More answers
- Customer won’t pay invoice: what do I do?
- What legal action for unpaid invoices can I take if a customer refuses to pay?
- Can you write off unpaid invoices?
- How much do collection agencies charge?
- Who pays collection agency fees: me or the debtor?
- How do I write a payment demand letter?
- Is small claims court for unpaid invoices better than a collection agency?
- How to hire a collection agency: what are the steps?
- How to send someone to collections: what are the steps?
Sources: Business News Daily, “The Best Collection Agency Services” (page last updated Oct 17, 2024) (accessed Oct 18, 2026).
Owed money by another business?
Tell us about the unpaid invoice and we’ll match you with an experienced collection partner suited to its size, age and location. Matching is free.
Get matched with a collection partner