Commercial debt collection is the recovery of unpaid invoices owed by one business to another. We verify the debtor, contact its decision-makers by phone, email and letter, negotiate payment or a plan, and escalate to a local attorney only with your approval. You pay a percentage of what we collect, and nothing if we collect nothing.
What we handle
- Unpaid invoices and open accounts from $1,000 to $1M+
- Bounced (NSF) checks and stopped payments
- Broken payment plans and settlement defaults
- Balances owed by businesses that have changed names, moved or gone quiet
- Personal guarantees attached to business credit
How a file moves
Every account starts with verification: the debtor's exact legal entity from Secretary of State records, open liens and judgments, bankruptcy filings, and the people who can actually approve payment. Then a demand goes out by email and letter the same day, followed by a call.
Most business debtors pay, or agree to a plan, inside the first 30 days. If they don't, we send you a written legal recommendation with the collectability evidence, the expected cost and the timeline. Nothing goes to suit without your sign-off.
What you see
- Every call, email, letter and promise logged in your client portal
- Settlement offers sent to you for approval, with our recommendation
- Monthly statement and immediate alert on any payment
- Remittance within 10 business days of funds clearing
When to place an account
The single biggest factor in recovery is age. Industry data compiled by the Commercial Collection Agency Association and NACM shows roughly 94% of commercial accounts are collectible at 30 days past due, about 74% at 90 days, 58% at six months and only 27% at one year. Every month an invoice sits in your aging report, the odds drop.
A practical rule: place an account once it is 60 to 90 days past due, or sooner if the customer has stopped answering, broken two promises, bounced a check or told you it is closing. Waiting for one more reminder rarely changes the outcome, and an early placement also costs less.
Our contingency rates
- 10% on balances over $500,000
- 15% on balances of $50,000 to $499,999
- 20% on balances of $10,000 to $49,999
- 25% on balances of $3,000 to $9,999
- 30% on balances of $1,000 to $2,999
Disputes, partial payments and payment plans
Many past-due business accounts are not pure refusals to pay. The debtor has a complaint about part of an order, cash flow is tight, or the invoice is stuck in an approval queue. We separate the disputed portion from the undisputed balance, send you the debtor's position with supporting documents, and push for payment of what is not in question while you decide on the rest.
When a debtor cannot pay in full, we negotiate a written plan with dated installments, ideally with a down payment and a provision that the full balance comes due if a payment is missed. You approve every plan and every settlement below the full balance. If a plan breaks, the file goes back to active collection the next business day.
Frequently asked questions
How much does a commercial collection agency charge?
Most commercial agencies charge a contingency fee of 15% to 50% of the amount collected, depending on the age and size of the debt. Our published rates run from 10% to 30% depending on the balance, and you pay nothing if nothing is collected.
Will collections damage my relationship with the customer?
Our collectors are professional and factual. We never threaten, embarrass or contact your customer's own customers or suppliers. Many debtors keep buying from our clients after paying.
Do you collect consumer debts?
No. We only collect debts owed by businesses for business goods and services.
What information do I need to place an account?
The debtor's legal name and address, the balance, and copies of invoices. A credit application, signed terms, purchase orders and proof of delivery help a great deal, but you can place the account without them and send them later. We start the same business day.
Can you charge the debtor interest or collection costs?
Only where your signed terms or state law allow it. If your credit application provides for interest and collection costs, we include them in the demand. Otherwise we collect the principal balance owed.
Related services
- Pre-collection letters
- Legal collections
- Judgment enforcement
- International collections
- Skip tracing
- Bankruptcy claims
- Lien & bond claims
Industries we serve
Owed money by a business?
Place an account in three minutes. No recovery, no fee. Rates from 10%.