Commercial collection agencies: how they work and what they charge
Key takeaways
Most commercial agencies work on contingency. If they collect nothing, you usually owe nothing.
On a $5,000 invoice, two published schedules charge 20% and 25%: $1,000 to $1,250 of what they collect.
If the account goes to an attorney, the rate and the court costs change. Get the legal-stage terms in writing first.
CLLA-certified agencies carry a surety bond of at least $150,000 and have their trust accounts reviewed every year.
How much do commercial collection agencies charge?
Most charge a contingency fee on what they collect, and the percentage falls as the balance rises. Here are two agencies' own published schedules, side by side with a flat-fee route for one invoice.
| Amount collected | The Kaplan Group | DCS Collection Service |
|---|---|---|
| $200 to $1,999 | Not listed | 25% |
| $2,000 to $2,999 | Not listed | 20% |
| $3,000 to $6,999 | 25% | 20% |
| $7,000 to $9,999 | 25% | 18% |
| $10,000 to $30,000 | 20% | 15% |
| $50,000 to $499,999 | 15% | Negotiable |
| Debtor outside the US | 30% | Not listed |
Sources: The Kaplan Group's commercial rates and DCS Collection Service's fee page, checked October 2026. Kaplan lists $10,000 to $49,999 as one tier. Other agencies price differently, so ask each one for its schedule in writing.
What would that cost on a real invoice?
Apply those schedules to three common invoice sizes and the fee grows with the balance. A flat fee does not.
| Invoice collected | At Kaplan's rate | At DCS's rate | Easy Small Claims |
|---|---|---|---|
| $5,000 | $1,250 (25%) | $1,000 (20%) | $99 to start, $299 through the hearing |
| $8,000 | $2,000 (25%) | $1,440 (18%) | $99 to start, $299 through the hearing |
| $15,000 | $3,000 (20%) | $2,250 (15%) | $99 to start, $299 through the hearing |
The trade-off is real. An agency fee is owed only if money comes in, while our $99 is paid up front. Court costs are extra with us and passed through at cost, and collection steps after a judgment are quoted separately. Our comparison of Easy Small Claims and a collection agency walks through which fits your invoice.
How does a commercial collection agency work?
An agency works the account in two stages: its own letters and calls first, then an attorney if that fails.
You place the account
You send the invoice, any contract or purchase order, statements and your contact history, and sign the agency's agreement.
The agency contacts the debtor
Letters, calls and negotiation, often including payment plans. This in-house stage is where the published contingency rates apply.
An attorney may take over
If the debtor still does not pay, the agency can forward the claim to an attorney near the debtor. You are usually asked to approve a lawsuit, and you may be asked to advance court costs.
Money is remitted to you
Payments go into the agency's trust account, and the agency sends you the balance after its fee, on the schedule set in your agreement.
What changes when an agency sends the account to an attorney?
The fee usually changes, and court costs come into play. DCS, for example, says its attorney stage follows the Commercial Law League rate schedule of 20% of the first $300, 18% of the next $1,700 and 13% of the balance, plus a 10% DCS service fee. Kaplan says it makes a second effort through its in-house law firm at the same rates.
Before you place an account, ask three things in writing: the attorney-stage rate, who pays the filing fee and service costs, and whether there is a suit fee. If the claim is under your state's small claims limit, compare that with filing in small claims for an unpaid invoice, where most business owners do not need a lawyer.
How do you choose a commercial collection agency?
Start with certification and a written fee schedule, then check how the agency handles your money.
- CLLA certification. The Commercial Law League of America's program requires a surety bond of $150,000 to $500,000 by agency size, a yearly review of trust accounts, at least four years of commercial collecting and an on-site visit.
- A full fee schedule, including the attorney stage, skip tracing and any charge for withdrawing an account.
- How often collected money is sent to you, and from which kind of account.
- Experience with your industry and with debtors in the states where your customers are.
When is an agency the better fit?
An agency usually fits when you have many past-due accounts, a customer who has to be found, a debtor in another state or country, or a balance above the small claims limit. For one invoice from a business you can locate, under the limit, a demand letter and small claims can cost less. Agencies are also partners of ours: see partnering with Easy Small Claims.
Last updated October 2026. Easy Small Claims is not a law firm and this page is general information, not legal advice. Agency rates are as published by each agency and can change.
Questions, answered
How much does a commercial collection agency charge?
Most charge a contingency fee, a percentage of what they collect. Two published schedules charge 20% to 25% on balances of a few thousand dollars and 15% to 20% on balances of $10,000 or more, with lower rates on very large claims. Rates usually change if the account is sent to an attorney, so ask for the full schedule.
What is a B2B collection agency?
A B2B or commercial collection agency collects debts one business owes another, such as unpaid invoices for goods or services. It works the account with letters, calls and negotiation, and can forward it to an attorney if that fails. Consumer collection agencies handle personal debts, which carry their own federal rules.
Do collection agencies charge if they don't collect?
On a pure contingency agreement, no. You pay only a share of what is collected. Some agreements add charges for skip tracing, attorney forwarding or court costs if a lawsuit is filed, and some charge if you withdraw an account early. Read the agreement for those terms before you place the account.
What does CLLA certified mean for a collection agency?
The Commercial Law League of America certifies commercial agencies that meet its standards. Certified agencies carry a surety bond of $150,000 to $500,000 depending on their size, submit a yearly review showing client money in trust accounts is fully covered, have at least four years of commercial collection experience and are visited on site.
A small business owner himself, Nitin has been on the wrong end of an unpaid invoice and knows how easy it is to give up on one. He built Easy Small Claims so owners can get that money back. He is also a practicing barrister.