B2B Debt Recovery Options and Costs in Canada

Start with the reason the invoice is unpaid

Confirm the correct contracting business, invoice receipt, remaining balance and any missing purchasing reference. If the amount is disputed, resolve the issue on its facts. Where the customer accepts the debt, ask for a specific payment date or discuss a realistic written arrangement.

Compare letters and agency fees by service

An owner can prepare a letter without hiring a legal professional. An agency letter or lawyer-signed letter buys a different service. Check who reviews the facts, who sends it, whether delivery is included and who handles replies.

• LCMC advertises two prepaid agency letters for CAD 12.50 per account.
• An Ontario paralegal advertises CAD 199 plus HST for a letter package; a Quebec lawyer advertises CAD 295 plus tax.
• For standard B2B claims over CAD 1,000, LCMC lists 25% on the first CAD 4,000 collected and 10% thereafter. Specified small or previously placed categories differ.

A cost example is not a recovery forecast

If a hypothetical CAD 5,000 balance were fully collected under that standard LCMC rate, commission would be CAD 1,100 and proceeds before tax or other charges CAD 3,900. This does not estimate the chance of collection or compare equivalent services.

RemitRight charges no business collection commission, but card processing can reduce the amount retained. Compare actual gross cash received minus all relevant charges, rather than equating free software with cost-free transactions.

Court needs a separate collection budget

Filing is only the start of a potential claim. Include service, preparation, representation, hearings and enforcement where needed. A judgment does not mean money has reached your bank. Use the province guides for the appropriate forum and official sources.

Other routes solve different problems

Mediation can help parties resolve a dispute. Factoring sells eligible receivables for liquidity under a financing agreement; it is not the same as collecting an old default. Existing credit insurance and insolvency claims have separate eligibility and procedures. Liens or bond claims may have deadlines that ordinary reminders do not preserve.

What public success figures can tell you

The reviewed evidence does not establish comparable Canadian success rates for every method. Provider percentages can describe selected claims and different outcomes. Track full payment, partial payment, dollars collected and time to collect separately. Read the methodology guide before using a recovery percentage in your decision.

Sources and further reading

• LCMC commercial rates and prepaid letters
• DAR letter package
• JuriPro letter package
• BDC factoring guidance
• BC judgment enforcement