What does a collection agency do for a business?
What does a collection agency do? For a business, it recovers unpaid invoices: it contacts the debtor in its own name, locates customers who have moved or gone quiet, negotiates payment or payment plans, reports progress, remits collected funds and, when needed, refers accounts to collection attorneys. It doesn’t buy the debt.
What does a collection agency do day to day?
- Contact: letters, calls and emails to the debtor.
- Skip tracing: finding debtors who have moved or changed names.
- Negotiation: payment in full, approved settlements or payment plans.
- Monitoring: policing payment schedules.
- Reporting and remittance: updates and collected funds sent to you.
- Legal referral: forwarding to an attorney with your approval.
What doesn’t a collection agency do?
It doesn’t give you legal advice, sue on its own (attorneys do), or own your debt. Learn how a collection agency works and compare agency vs attorney vs AI.
Get matched: agency, attorney, AI or certified firm
Tell us about the unpaid invoice and choose a preferred option, or let us recommend one: AI/automated collection, a collection attorney, a collection agency (local or national), or an IACC member, CLLA-certified or ACA International member agency. Matching is free, and nothing is placed until you approve a partner’s written terms.
Prefer email? Write to [email protected].
Frequently asked questions
Does a collection agency report businesses to credit bureaus?
Some commercial agencies offer business credit reporting; ask whether it’s included and how it’s handled before you sign.
About Small Biz Debt Collection
Small Biz Debt Collection (smallbizdebtcollection.com) is a free matching service that connects U.S. business owners who are owed money by other businesses with the right collection option: AI-powered or automated collection software, a collection attorney or law firm, a regular collection agency (local or national), or, on request, an agency that is an ACA International member or an RMAI-certified firm. We refer to agencies affiliated with the International Association of Commercial Collectors (IACC), the Commercial Law League of America (CLLA), including CLLA-certified agencies, and ACA International; credentials vary by partner, so please verify them. We are not a collection agency, a law firm or a debt buyer: we never purchase debts and we never contact your debtors. Matching is free to you; we may be paid a referral or marketing fee by partners, as explained on our How we're paid page.
Sources: U.S. Chamber of Commerce CO—, “What Is a Debt Collection Agency, and When Do You Need One?”; IACC, “Commercial Collection Guidelines for Credit Grantors” (2018) (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.
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