How much do collection agencies charge?
How much do collection agencies charge small businesses? The short answer, with sources:
Most collection agencies charge a contingency fee, keeping a percentage of what they recover. Business News Daily cites a typical range of 20% to 50%, and the U.S. Chamber of Commerce cites 25% to 50%. Older, smaller or harder accounts usually cost more, and legal action may add separate costs. Always get terms in writing.
How much do collection agencies charge: the details
Published ranges: 20%–50%[source] and 25%–50%[source]. Some agencies offer flat-fee letter services for newer accounts[source]. See collection agency fees for small business and estimate your net with the after-fee calculator.
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?
- 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?
- Can I hire a collection agency to collect a debt that’s small?
- 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); U.S. Chamber of Commerce CO—, “What Is a Debt Collection Agency, and When Do You Need One?” (accessed Oct 18, 2026).
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