Small Business Debt Collection
You've Been the Collections Department. Time to Hand It Off.
Chasing an unpaid invoice yourself can turn into weeks of calls, emails, and payment promises on top of everything else you do. JSD can take the account over without a complicated onboarding process or a perfectly assembled file. Send what you have. We'll tell you what happens next.
The Difference
One unpaid invoice can be a big account to a small business.
A large company can absorb an overdue $20,000 receivable in a way a ten-person company can't. When that balance is outstanding, it's usually the owner, the bookkeeper, or a salesperson chasing it between the responsibilities that actually pay the bills, and the chasing itself has a cost even before the invoice gets written off.
A smaller balance doesn't make the placement informal. A single $800 invoice still goes through JSD's review and collection process. What follows is what actually happens once you hand the account over.
What We Need
What do you need to send an account to collections?
Four things open a file:
An invoice, an email chain, a contract, a purchase order. Send what you have and JSD handles the intake from there, including the data entry. Nobody needs to rebuild a QuickBooks export into a proprietary format before we'll look at it.
See exactly what JSD needs to open a file
Portfolio Size
Do I need a large portfolio to use a collection agency?
No. One account gets the same collector assignment, the same fee agreement, and the same review before contact as a portfolio running into the thousands.
There's no hard account minimum. Balances under $200 are generally a poor fit for contingency collection, and we'll say so plainly if yours falls there. Beyond that, a single overdue invoice is a legitimate reason to call, not something to save up until it has company.
The Process
What happens after you send it?
Placements are reviewed by hand, and the collector assigned to your account is the one who stays on it through resolution.
You send the account
An invoice, an email chain, a contract, a purchase order. Send what you already have rather than rebuilding it into some proprietary format first.
JSD reviews it
Every placement is checked by hand against what was submitted before it moves forward, not passed through automatically.
A collector is assigned
The person who first contacts your debtor is the one who keeps the account through resolution, rather than a rotating queue.
Contact begins
First contact on a single placement typically happens within 24 to 48 hours, by whichever channel actually reaches the debtor.
The account is worked through resolution
Payment in full, a payment plan, or a documented dispute. The file stays open until it reaches one of those, not until someone stops checking on it.
Getting Paid
What happens when JSD collects the money?
Recovered funds go into a trust account separate from JSD's own operating money while they clear. Remittances go out on a set schedule, and yours shows the recovery, the contingent fee, and the net amount owed to you on each line, sent by check, ACH, or wire.
If your customer pays you directly instead, tell your representative the amount and which invoice it applies to. Collection activity on that balance stops, and the contingent fee owed on that payment settles the normal way, on your next remittance or on an invoice.
See how recovered funds are handledThe Customer Relationship
What happens to my customer relationship?
Sending an account to collections changes the conversation. It doesn't require abandoning the relationship. JSD reads the file, learns the terms behind the invoice, and assigns a real person to the account rather than dropping it into an automated queue.
A customer who owes you money is often still a customer you'd work with again once the balance is settled, and how the account is handled affects whether that stays true.
From Businesses Like Yours
We can work an enterprise portfolio. Your one invoice gets the same attention.
"We are a business to business catalog sales company that generates volumes of smaller, under $1000 accounts but with very sketchy and usually unverified ownership information and yet the collection specialists at JSD manage to collect a great majority of the accounts we turn over to them."
"After having had a few horrific experiences with past agencies I was able to find JSD, in which they have collected on 3 accounts that I had completely written off."
Timing
When should I stop chasing it myself?
FAQ
Small business debt collection, answered plainly.
- Can a small business use a collection agency?
- Yes. JSD works both large portfolios and individual placements, and a one-invoice account isn't treated as a smaller-tier client. It's placed, reviewed, and worked the same way.
- Can I send one unpaid invoice to collections?
- Yes. There's no requirement to bundle accounts or wait until a backlog builds up. One invoice, sent whenever you're ready to hand it off, is enough to open a file.
- Is there a minimum amount for collection?
- There is no hard minimum, although accounts under $200 are generally a poor fit for contingency collection. It's worth a quick conversation with your representative before placing a very small one.
- What information do I need to place an account?
- Four things: the business name, the address, the amount owed, and the invoice date. An invoice, an email chain, a contract, or a purchase order works fine as backup. Send what you already have and JSD handles the data entry.
- How quickly does a collection agency start working an account?
- A collector is assigned before contact goes out, and first contact on a single-account placement typically happens within 24 to 48 hours.
- How much does small business debt collection cost?
- JSD works on a contingent fee, calculated as a percentage of what's recovered. There's no fee on money that never comes back, so a fee only applies against an actual recovery.
- What happens if my customer pays me directly?
- Tell your account representative the amount and which invoice it applies to. Collection activity on that balance stops, and the contingent fee owed on that payment settles on your next remittance or on an invoice.
- How do I receive money recovered by JSD?
- Recovered funds sit in a separate trust account while they clear, then remit to you on a set schedule by check, ACH, or wire. Your remittance shows the recovery, the fee, and the net amount on each line.
- Can JSD collect from a business in another state?
- Yes. JSD handles commercial accounts involving businesses across the United States.
- Does JSD collect consumer debts?
- No. JSD collects business-to-business accounts only, one company owing another company for goods or services delivered.
Get Started
You already have enough to start the conversation.
Have an unpaid business invoice? Send us what you have. The invoice, the debtor's information, and the correspondence already in your files are enough for JSD to review the account and tell you what comes next.
Related reading: how JSD works a commercial account.
Tell Us About an Account
One invoice is enough to start
Send the business name, the amount owed, and the invoice date. We'll tell you directly whether it's worth placing and what happens next.