Collection agency alternative: flat 20% of recovered, $0 upfront — in your own name

Traditional collection agencies commonly keep 25–50% of what they recover and contact your customers as a third party. Collector follows up in your business’s name for a flat 20% — no minimums, no monthly fee, no contract.

Collection agency fees vs. Collector

How the three ways of recovering overdue invoices actually compare for a small business.

Traditional collection agency Doing it yourself (in-house) Collector
Fee 25–50% of amount collected is the commonly cited contingency range; older or smaller debts usually sit at the high end “Free” — but the average small business spends ~14 hours a week chasing invoices (QuickBooks, 2025) Flat 20% of what’s actually recovered — same rate regardless of debt age or size
Upfront cost Usually $0 on contingency, but some agencies charge setup or flat fees, and many set account minimums $0 cash — paid in owner / office-manager time instead $0 upfront, $0 monthly. If we recover nothing, you pay nothing
Who contacts the debtor The agency, in its own name — your customer knows they’ve been “sent to collections” You — which is exactly the awkward conversation that keeps getting postponed Your business’s name on every email, call, and letter — first-party follow-up, tone approved by you
Best-suited invoices Old, written-off, or disputed debts where the relationship is already gone One or two friendly reminders, when you have the time Invoices roughly 30–120 days overdue where you still want the customer back
Contract Varies — some require signed agreements or minimum placement volumes None None — no contract, cancel anytime
Setup Account opening, debt placement paperwork per batch Spreadsheets, reminders, and willpower Forward your aging report — concierge onboarding does the rest

Agency fee figures are the contingency ranges widely published across the collections industry; individual agencies set their own rates, which vary by debt age, balance size, and volume. We don’t quote any specific agency’s pricing here. Collector pricing is our own published offer.

An honest comparison

Traditional agencies exist for a reason. The question is which tool fits which invoice.

When a traditional collection agency is the right choice

  • The debt is old or written off. If an invoice is a year past due and the customer has gone silent, an agency’s leverage — credit bureau reporting, legal escalation — can matter more than tone.
  • The relationship is already over. When you never want to work with that customer again, third-party pressure has no downside.
  • You need litigation muscle. Many agencies have attorney networks for suing on large delinquent balances.
  • The debt is disputed. Contested debts need investigation and documentation handling that goes beyond follow-up.

When Collector is the right choice

  • The invoice is 30–120 days overdue — the window where a consistent, polite, professional sequence recovers the most at the lowest cost.
  • You want to keep the customer. Follow-up arrives in your name, in your tone — a reminder from you, not a collections notice from a stranger.
  • The balances are too small for an agency. No minimums here: a $400 invoice gets the same email → phone → letter sequence as a $40,000 one.
  • You want zero risk. Flat 20% only on money that actually lands in your account. Recover $0, pay $0.

Questions about collection agency costs

The contingency range most widely cited across the industry is 25% to 50% of the amount collected. Fresher, larger commercial debts tend toward the lower end; older, smaller, or consumer debts toward the higher end. Some agencies also charge setup fees or require minimum balances or placement volumes. Collector charges a flat 20% of recovered, with no minimums and no setup fee.
Yes — first-party follow-up. A third-party agency contacts your customer in the agency’s name, which signals “you’ve been sent to collections.” Collector follows up in your business’s name: emails, AI phone calls, and physical letters that read like a professional reminder from you. You approve the tone once and it runs on autopilot.
Often not economically — many agencies set account minimums, and on a small balance a 40–50% contingency leaves little behind. That’s the gap Collector was built for: no minimum balance, flat 20%, and the same escalating sequence whether the invoice is $400 or $40,000.
Collector is $0 upfront and a flat 20% of what’s recovered — no monthly fee, no contract, no minimum. On a $10,000 recovered balance you keep $8,000; at a typical agency contingency of 25–50% you’d keep $5,000–$7,500. And every step is FDCPA-compliant, sent in your business’s name.

Keep 80% — and keep the customer.

$0 upfront, flat 20% of recovered, no minimums, no contract. We chase the money in your name; you watch it land.

Join the waitlist — it’s free