Understanding collection fee structures is essential for assessing the cost-benefit of professional debt recovery.
The dominant model in B2B collection. The agency earns a percentage of the recovered amount. Typical rates: 15-25% for amicable collection, 25-35% for litigated claims. If the agency recovers nothing, the creditor pays nothing.
Claim age (older = higher rate). Claim value (larger = lower rate). Jurisdiction difficulty (Western Europe = lower, emerging markets = higher). Volume commitment (more claims = lower rate).
Separate from agency commission. Vary by jurisdiction: Germany's Mahnverfahren (EUR 36), Spain's monitorio (EUR 0), UK's MCOL (GBP 35-10,000 depending on claim value), France's injonction de payer (EUR 35.21).
If litigation is required, lawyer fees in the debtor's jurisdiction are additional. Many agencies advance these costs and recover them from the debtor as part of the judgment.
In many jurisdictions, the creditor can recover collection costs from the debtor: EUR 40 fixed compensation under the EU Late Payment Directive, plus reasonable collection costs under national law. In Germany, statutory Inkassokosten are recoverable. This means professional collection can be cost-neutral or even profitable for the creditor.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
