Small businesses suffer disproportionately from unpaid invoices. A single EUR 20,000 bad debt can represent a month's profit. Professional collection agencies are not just for large corporations.
Internal collection capacity is limited. The business owner or a single bookkeeper cannot pursue debtors across jurisdictions while running the business. Professional agencies provide the infrastructure that small businesses lack.
Most agencies accept claims as low as EUR 1,000-5,000 on contingency. No recovery, no fee. This eliminates financial risk for the small business while providing access to professional collection tools.
Many fast-track court procedures are designed for exactly these claim sizes: Germany's Mahnverfahren (EUR 36 filing fee), Spain's proceso monitorio (zero fees), Belgium's IOS (no hearing required). These procedures make legal action cost-effective even for smaller claims.
Once customers know you use a collection agency, late payment decreases. The agency's existence in your terms and conditions acts as a preventive measure.
Include collection agency engagement at 90 days in your payment terms. Maintain proper documentation from day one. Choose an agency with experience in your industry and the jurisdictions where your customers operate.
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
