Professional B2B collection typically involves both collection agencies and law firms. Understanding when each is appropriate maximises recovery while minimising cost.
For amicable collection (demand letters, phone calls, negotiation), a collection agency is more cost-effective than a law firm. Agencies operate on contingency. Lawyers bill by the hour. For the 50-70% of claims resolved without court proceedings, the agency route is optimal.
When amicable collection fails and court proceedings are necessary, a specialised commercial litigation firm in the debtor's jurisdiction takes over. The firm files payment orders, manages hearings, and handles appeals.
The best international collection agencies have established networks of vetted law firms in every major jurisdiction. The agency handles amicable collection, then seamlessly transfers to the local law firm for litigation and enforcement — providing the creditor with a single point of contact throughout.
Amicable (agency): contingency 15-25%. Litigation (law firm): typically court fees + legal costs, sometimes with partial contingency arrangements. Professional agencies negotiate preferred rates with their law firm networks.
Engaging a law firm directly for amicable collection (expensive). Engaging a domestic law firm for foreign jurisdiction claims (ineffective). Engaging a law firm without local commercial court experience (risky).
Our debt recovery agency with over 21 years of experience provides: Business to Business Collections Services, Legal Debt Collections and worldwide Skip Tracing services.
