Maybe you have heard of a contingency collection service and are familiar with the process, but maybe you still aren’t sure about the reasons for using one. If you are a business looking for help to collect debts, this may be the route for you.

What is different about a contingency collection service from other collection services?

What is Contingency Debt Collection? Contingency debt collection is the term used when a collection agency collects a debt for a Client and the fees are based on an agreed upon percentage of the amount collected. 

Basically, the client is only going to pay the collection agency if the debt is collected. Not only does this clear the client of payment if no debt is collected, but it also motivates the collection company to get that debt. A set fee percentage is determined beforehand and is typically based on the amount of debt being collected or the age of the debt. The bottom line is that if no money is collected, no money is paid to the collection agency.

Why use this type of debt collection service?

It often makes sense to use a contingency collection service if you are looking to get paid for your services and the debt is 120+ past due. These agencies will go after your customer with letters, calls, negotiation and even legal action if it comes to that. Often a combination of these tactics are put to use, and because the agency only gets paid when you do, they want that money just as much as you do and will work hard to get it.

Why do the fees seem high?

If the debt hasn’t been paid yet, chances are your current methods aren’t working and might not ever work. Remember, these are probably more challenging accounts so you need someone skilled at collections. And with the more challenging accounts, sometimes comes higher fees. Even with the fees, collecting something is better than nothing at all.


For a small to midsized business, debt collection is probably something to let someone else handle. Finding the right agency is important, as you want a fair deal, and you want your money! Look to Rocket Receivables for debt and accounts receivable collections. You’ll never have to guess the rate for collections because it is a set percentage.  Let Rocket Receivables do the tough work for you.