Easy Small Claims or a collection agency: which fits your unpaid invoice?
Key takeaways
Agencies usually charge 25% to 50% of what they recover, and older debts tend to cost more.
Easy Small Claims is $99 to start and $299 through the hearing, with court costs at cost and no cut of what you recover.
On an $8,000 invoice, a 25% to 50% fee is $2,000 to $4,000. Our fee does not grow with the invoice.
For many small balances, or a customer you cannot find, an agency is often the better fit.
Who is this page for?
Business owners with an invoice that reminders have not moved, who are deciding between a collection agency and the demand letter and small claims route. If one customer owes you a few thousand dollars and you know where to find them, this page is for you. If you have a hundred small balances, an agency is probably the better call, and we explain why below.
How does a collection agency compare with Easy Small Claims?
The main difference is how you pay. Most agencies take a share of what they collect. We charge a published flat fee for each stage, and court costs pass through at cost.
If you are still weighing it up, run your invoice through the free invoice checker. It flags when an agency, a lawyer or small claims is the better fit.
| Collection agency | Easy Small Claims | |
|---|---|---|
| Cost | Usually 25% to 50% of what is recovered, often more for older accounts (U.S. Chamber of Commerce) | $99 to start, $299 through the hearing, court costs at cost. Collection steps after a judgment quoted separately |
| What you keep | What is recovered, less the agency's share | Everything the customer pays you. We take no cut |
| Speed | Depends on the agency and the account | The demand letter goes out once you approve it. Court timing depends on the court's calendar |
| Your effort | Hand over the account and answer questions | Approve each step, and attend the hearing if there is one |
| When it fits | Many small balances, a customer you cannot find, or a debt you would rather not take to court | One larger invoice, a customer you can locate, an amount under your state's small claims limit |
An example, using our own arithmetic rather than any agency's quote: on an $8,000 invoice, a 25% to 50% contingency fee comes to $2,000 to $4,000, owed only if the money comes in. Our fee is the same whether the invoice is $3,000 or $15,000.
How does Easy Small Claims work?
- Tell us about the invoice. Send the invoice, the contract or emails, and what you have tried. We check that the customer is a registered business and that the amount fits the court's limit.
- Approve the demand letter. We draft it from your own documents, and nothing goes out until you sign off. Here is what a demand letter for payment should say.
- We follow up. If the customer replies, you decide what happens next, including a payment plan on your terms.
- If they still do not pay, we prepare the court case. Court-ready paperwork, filing and service arranged, and prep for the hearing. In Texas, justice court hears claims up to $20,000, not counting interest and court costs (Texas State Law Library). Our guide to small claims over an unpaid invoice walks through the court side.
- You attend the hearing. Someone from your business tells the judge what happened. We get you ready for it.
What does it cost, and what is included?
| Stage | Price | What you get |
|---|---|---|
| Start | $99 | Eligibility check, a demand letter built from your documents, and follow-up |
| Through the hearing | $299 in total | Everything above, plus court-ready filing paperwork, service arranged and hearing prep |
| Court costs | At cost | Filing and service fees set by the court, shown before you approve |
| After a judgment | Quoted separately | Steps to collect a Texas judgment if the customer still does not pay |
Fees are published before checkout. If a balance is not worth chasing, we will tell you.
When is a collection agency the better choice?
More often than you might think. An agency is usually the stronger option when:
- you have dozens of small balances and want them worked as a batch
- you cannot find the customer and need someone to trace them
- the amount is over your state's small claims limit
- nobody from your business can attend a hearing
Agencies are partners of ours, and we pass along work that suits them better. Here is how we work with agencies and bookkeepers. If you have not tried the earlier steps yet, start with how to collect unpaid invoices.
What will Easy Small Claims not do?
- Act as your lawyer. We are not a law firm and do not give legal advice. Read when a lawyer helps in small claims.
- Stand in for you at the hearing.
- Buy your debt or take a percentage of it.
- Promise a result. A judgment is the court's call, and a customer with no money may still not pay.
To run your own numbers, the collection agency fee calculator shows what an agency keeps at your quoted rate next to small claims court costs.
Last updated October 2026. Easy Small Claims is not a law firm and this page is general information, not legal advice.
Questions, answered
How much does it cost to hire a collection agency?
Most collection agencies work on contingency, keeping a share of what they recover, often between 25% and 50%. Older or harder accounts usually carry a higher rate, and some agencies add a setup fee. You normally owe nothing if nothing is collected. Ask for the rate in writing and check exactly what it applies to.
Can a small business use a collection agency?
Yes. Agencies work for businesses of every size, and many will take a single account. An agency suits a business with lots of small balances or a customer it cannot locate. For one larger invoice from a customer you can find, a demand letter followed by small claims court can cost less, because the fee does not grow with the debt.
How do you collect a debt as a small business?
Start with a written reminder and a phone call. If that fails, send a demand letter with a firm deadline. Then choose between handing the account to a collection agency and filing in small claims court, which hears business claims up to the state limit, $20,000 in Texas justice court. A judgment opens up legal ways to collect.
Is small claims court cheaper than a collection agency?
It depends on the amount. An agency's fee grows with the debt, while flat fees and court costs do not. On an $8,000 invoice, a 25% to 50% contingency fee is $2,000 to $4,000. Easy Small Claims is $299 through the hearing, plus court costs at cost. On a $300 invoice, an agency may make more sense.
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.