COMPARE DEBT COLLECTION AGENCIES
The best debt collection agency for you is the one that gets the most money back without damaging your customer relationships. This guide compares the main types of agency and the questions to ask before you sign, with Chargetree’s answer to each.
UPDATED 15 NOVEMBER 2026
Types of debt collection agency in Australia
Best for
How you pay
What to check
Traditional agency
Larger or older debts, and work that needs field visits
Commission, sometimes with fees on top
Extra fees and how long money sits in a trust account
Digital-first collector
High volumes of smaller debts
Usually a flat success fee
How hardship and payment plans are handled
Debt recovery lawyer
Disputed or large debts that are likely to go to court
Hourly or fixed fees
Costs against the size of the debt
Debt buyer
Old debts you’ve given up on
You sell the debt for a small share of its value
You get nothing more if they later recover it
Chargetree
Small businesses with debts 60 days to 12 months overdue
No recovery, no fee
Remote collection only, with no field visits
What commission-only debt collection means
“Commission only” or “no win, no fee” means the agency is paid a share of what it recovers and nothing if it recovers nothing. It’s the most common model in Australia. Before you sign, check whether letters, searches, legal referral or withdrawals are charged separately, and how long recovered money takes to reach you.
Questions to ask any debt collection agency, and how Chargetree answers
Question
Chargetree’s answer
What percentage do you take, and does it change with the age or size of the debt?
15% of what’s recovered on debts under $5,000, or 10% from $5,000. If nothing is recovered, you pay nothing
Are there fees on top for letters, searches, legal referral or withdrawal?
No upfront or listing fees, and letters of demand are included. Court costs are extra if you choose legal action
How long until my money reaches my account?
Payments go to your account through Stripe, without going through a trust account first
Can I see every contact you make with my customer?
Yes. Every email, SMS, call recording and payment is in your dashboard
How do you handle hardship and disputes?
Contact pauses and we tell you. Customers can set up a payment plan
Do you follow the ACCC/ASIC guideline, and are you licensed where you need to be?
We follow the guideline on every debt. We collect in NSW, Victoria and Queensland, where remote collection doesn’t need a licence
Warning signs when choosing an agency
Fees you only find out about after you’ve signed
No way to see what’s been sent to your customer
Sample letters that threaten action the agency won’t actually take
Money held in a trust account for weeks before you’re paid
No clear process for hardship or disputes
When a traditional agency might suit you better
If you need field visits, skip tracing for someone who has disappeared, or repossession of goods, use a licensed field agent. Chargetree collects remotely and doesn’t do field work.
Frequently asked questions
What’s the best debt collection agency in Australia for small businesses?
It depends on the debt’s type, size and age. Compare commission, extra fees, how quickly you’re paid, what you can see and how the agency treats your customers. Chargetree suits small businesses with debts 60 days to 12 months overdue that want a fast start and full visibility.
Should I use a debt collector or a lawyer?
A debt collector usually suits undisputed debts, because most work on a no win, no fee basis. A lawyer suits disputed or large debts where court action is likely, and usually charges whether or not you recover.
What is commission-only debt collection?
The agency only gets paid a share of what it recovers. If nothing is recovered, you pay nothing. Check for separate fees for letters, searches or legal action.
How do I check a debt collector is legitimate?
Check the company’s ABN, that it names the business it’s collecting for, and that it follows the ACCC/ASIC Debt Collection Guideline. In states that license debt collectors, such as Western Australia, you can search the regulator’s licence register.
Keep more of what you’re owed
Most agencies take 5% to 30% of what they recover. We charge 15% on debts under $5,000 and 10% from $5,000, with nothing upfront and nothing at all if we don’t recover. Start now and we’ll contact your customer today.
No collection, no fee
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