The right proposal should make sense for the accounts you actually have. Send each agency the same brief: total balance, account count, age range, customer location, disputes, and previous collection attempts. Then ask these eight questions.
- Have you worked accounts like these?
Ask about your industry, account size, documentation, and whether the debt is already disputed or previously placed elsewhere. Request examples that resemble your files.
- What would you do first?
Ask who reviews the documents and contacts the customer. A useful answer explains the next steps and what information would change the approach.
- How should we interpret your recovery figures?
Clarify whether a percentage refers to accounts or dollars. Ask which accounts are included, how old they are, the period measured, and whether fees are deducted. A high percentage on a selected group may tell you little about an aged portfolio.
- What would we receive after fees?
Request the commission schedule in writing. Clarify whether rates vary with age, balance, dispute status, or prior placement. Include payments the customer might make directly to you.
- Who can approve a settlement?
Agree on authority before the first negotiation. Decide whether discounts and payment plans require your approval and how offers will reach the decision-maker on your team.
- When will we receive money and updates?
Ask for the remittance schedule and a sample report. You should be able to see current status, commitments, payments, and the proposed next step.
- What happens if collection does not resolve the account?
Ask whether the agency recommends continued contact, closure, or legal review. Confirm who approves any legal step, what costs could apply, and whether another provider becomes involved.
- How do we end or transfer the arrangement?
Read withdrawal terms, exclusions, and any fees associated with changing the scope. Flag a file already placed with another agency before starting a new arrangement.
Use the same example with every agency.
Instead of asking only for the lowest percentage, ask each agency to explain the net remittance on the same hypothetical payment. For example, on a $50,000 recovery with a 25% commission and no additional costs, the net is $37,500. This is an illustration of the calculation, not an agency quote.
A useful request for your shortlist
Please explain the expected process, commission, direct-payment treatment, settlement authority, reporting, and remittance schedule for the attached account summary. Identify any legal costs separately.
Where to start your shortlist
Explore the top five commercial debt collection agencies. Each listing links the agency’s services and available review profiles so you can check the details yourself.
Two questions businesses often ask
Does “no recovery, no fee” answer every cost question?
Ask for the complete agreement. Confirm how collection commission works and whether legal referral, filing, or other separately authorized services could involve costs.
Can an agency guarantee that a difficult account will pay?
A proposal should explain how the account will be evaluated and pursued. Actual payment depends on the account facts, documentation, dispute status, and the customer’s ability to pay.
Choose the agency around the account.
Compare services, review profiles, and published client feedback. Then ask the agencies on your shortlist for a plan that fits your balance and account history.
See the top five commercial agencies