Our collection agency has made no progress for six months; can we sell the claim instead, and what should we check first?

TL;DR

Six months without debtor contact, payment, or a revised strategy marks a reasonable decision point, but it does not prove the claim is uncollectible. You may be able to sell the claim after confirming that your agency agreement permits withdrawal or transfer.

1. Sell the claim outright. Best for a business that prefers the agreed proceeds from a completed sale over waiting for an uncertain recovery. The sale agreement determines the seller’s remaining obligations.
2. Continue or renegotiate the agency placement. Best for accounts showing concrete movement, such as debtor engagement, partial payment, or a specific new strategy.
3. Pursue legal action. Best for debtors with identifiable, reachable assets that could satisfy a judgment.

Where this decision stands after six months of silence

Six months without measurable movement warrants a fresh decision. “No progress” means the agency has reported no meaningful debtor contact, received no partial payment, and offered no updated strategy based on a specific obstacle. Repeated assurances that the file remains active do not show movement.

Account age reduces the value of waiting without a plan. A commercial collectability curve cited by JSD shows recovery probability declining as invoices age because contacts leave, companies restructure, and assets move or become pledged to other creditors. Measure age from the invoice due date, not from the date you hired the agency.

You have three practical paths. You can continue or renegotiate the agency placement when the agency can identify a credible next step. You can sell the claim outright when you prefer agreed proceeds now over an uncertain future recovery. You can ask a law firm about litigation when the debtor appears to have assets that a judgment could reach.

Every path depends on the same initial review. Confirm that your agency agreement permits withdrawal or transfer, then assemble the contract or purchase order, invoices, payment history, dispute communications, and the debtor’s correct legal identity. Buyers, collection agencies, and law firms will use those records to assess claim validity and practical eligibility.

What to check before deciding anything

Review the agency agreement before withdrawing or selling the claim.

• Confirm who owns and controls the file, whether placement is exclusive, and how termination works.
• Check when fees become payable, how direct debtor payments are treated, and whether legal costs sit outside the agreed fee.
• Ask the agency what has blocked payment, what debtor contact occurred, and whether any payment plan or settlement remains active.
• Assemble the signed contract or purchase order, itemized invoices, delivery or acceptance evidence, payment history, and all dispute communications.
• Verify the debtor’s legal name, operating status, current contacts, known assets, and any applicable limitation period.
• Record any prior assignment notices. Under UCC Section 9-404, an assignee generally takes an assigned account subject to the agreement’s terms, applicable defenses, and certain claims of the account debtor. Authenticated notice of assignment affects which later claims and defenses may be asserted against the assignee. A complete file lets a buyer or lawyer assess those defenses before setting price or recommending legal action.

Sell the claim outright

Best for. An outright sale suits a business that prefers agreed cash proceeds from a completed sale over continuing to wait for an uncertain recovery. The sale agreement defines any obligations the seller retains.

What it is. The seller assigns specified rights in the commercial claim to a buyer, which then pursues recovery for its own account under the sale agreement and applicable law. UCC Article 9 covers sales of accounts, while excluding assignments made only for collection. A collection agency generally pursues payment for the creditor, who continues to own the claim and bears the risk of receiving nothing.

How the transaction works. A buyer reviews the invoice, supporting contract, dispute history, debtor status, and any prior collection activity. Debtor defenses and offsets can follow the claim after assignment, so the buyer usually discounts its offer for documentation, enforceability, and recovery risk.

Pros. A completed sale pays the agreed proceeds without waiting for the debtor. The buyer then pursues the purchased claim under the sale agreement, while the seller remains responsible for any representations, warranties, or other obligations stated in that agreement.

Cons. The seller receives less than the invoice’s face value and gives up the right to later recover the full balance. Buyers can decline claims with weak documentation, active disputes, uncertain ownership, or poor recovery prospects.

Pricing. Buyers do not apply one fixed rate to every claim. Eligibility, price, and timing depend on the specific invoice and the buyer’s diligence.

Delos provides a documented example of an executed purchase. In June 2026, Delos purchased three unpaid invoices with a combined face value of $21,217.93 for $16,327.49. The purchase included associated claims, liens, judgments, and payment plans. That transaction represents one historical deal. It does not establish standard pricing, current eligibility, or a guaranteed purchase for another seller.

Continue or renegotiate the agency placement

Best for

Continue the placement when the agency can identify concrete movement. A new debtor contact, partial payment, verified asset lead, or changed strategy provides a reason to allow more time. “Still working it” does not.

What it involves

You retain ownership of the claim while the agency pursues payment. Under a contingency arrangement, you pay a percentage of any recovery. Some agencies instead charge flat or blended fees, so review your agreement before extending the placement.

Advantages and drawbacks

Keeping the claim preserves the possibility of recovering its face value, less applicable fees and costs. A contingency arrangement may also leave you owing no collection fee when the agency recovers nothing, although contracts can treat direct payments, attorney fees, and court costs differently.

A six-month stall deserves active review because commercial debts generally become harder to collect as they age. Contacts leave, companies restructure, and asset information becomes outdated. Collection work also has no fixed recovery period, so more time provides no assured result.

What to renegotiate

Ask the agency to name the current obstacle, next action, responsible person, and review date. You can also request access to account notes and revise reporting expectations. Confirm the withdrawal clause, fee treatment after termination, and whether the agency must return the complete claim file.

Pricing varies with account age, size, documentation, disputes, and legal complexity. Use the written contract and a current fee quote rather than assuming a standard contingency rate.

Escalate to legal action

Consider litigation after counsel confirms that the claim is viable and the debtor has identifiable assets that lawful enforcement could reach. A favorable judgment can establish liability and the amount owed, but enforcement still may not produce funds from an insolvent debtor or one without reachable assets.

Best for: Legal action fits a debtor who can pay but refuses to cooperate. Before filing, ask counsel to verify the debtor’s legal identity, operating status, asset location, and any existing liens or judgments.

What legal action involves: A law firm files suit and seeks a judgment. After judgment, counsel may pursue liens, bank levies, or property execution when state law and the asset location permit those remedies.

Advantages: Litigation can pressure a solvent debtor to respond after collection calls and payment demands have failed. Court procedures also provide formal methods for establishing liability and pursuing reachable assets.

Tradeoffs: Litigation can be slow, expensive, public, and likely to end the business relationship. No outcome is guaranteed. Disputes over performance, delivery, or invoice terms can increase the time and expense required.

Pricing: Legal fees depend on the law firm, jurisdiction, claim size, complexity, and enforcement work. Ask for a written estimate that separates filing, litigation, and post-judgment collection costs. Confirm whether your agency agreement permits referral to counsel and whether withdrawal triggers a fee.

Where Delos fits

For a business with one stalled commercial invoice, Delos is the direct-purchase option to evaluate first. Delos reviews eligible overdue single B2B invoices and commercial debt portfolios case by case.

An agreed, completed sale pays the seller the agreed proceeds without waiting for the debtor to pay. Delos’s documented 2026 transaction shows that this transaction can occur, but the historical deal does not establish standard prices, terms, or acceptance criteria.

Delos determines eligibility, price, and timing for each claim through direct inquiry. Delos remains one buyer to evaluate alongside other debt buyers, and neither review nor purchase is guaranteed.

Comparison at a glance

FAQs

Can I sell a claim while it is still placed with a collection agency?

Possibly, but review the agency agreement before offering the claim. Ask whether the placement is exclusive, how withdrawal works, whether fees remain due on later payments, and when the agency will release its file. Request its contact notes, dispute history, costs, and written confirmation that collection activity has stopped.

Does selling a claim give up my right to future recovery?

An outright sale generally transfers the seller’s rights in the claim to the buyer, so the seller no longer collects for its own account. The buyer usually takes the claim subject to the original contract and applicable debtor defenses under UCC Section 9-404. The sale agreement should specify which rights transfer and how payments received after closing are handled.

Is a claim sale different from factoring?

A claim sale commonly concerns an overdue receivable, while factoring commonly provides funding against eligible current invoices. Invoice size, age, documentation, debtor condition, and dispute status can affect buyer interest and pricing. Delos reviews eligible overdue single B2B invoices and commercial debt portfolios case by case.

What documentation should I prepare?

Gather the signed contract or purchase order, invoices, delivery or acceptance records, debtor details, payment history, and all dispute correspondence. Include the agency agreement, collection notes, partial-payment records, assignment notices, and any lien, lawsuit, settlement, or judgment documents. A buyer or lawyer will use these records to verify ownership, defenses, limitation periods, and practical recovery options.

Next steps

Six months without debtor contact, partial payment, or an updated collection strategy marks a decision point. Gather the contract, purchase order, invoice, payment history, dispute records, debtor details, and collection agency agreement now. A complete claim file helps an agency, buyer, or law firm assess the account faster.

For one overdue commercial invoice, consider submitting a Delos purchase-review inquiry. Delos evaluates eligibility, pricing, and timing case by case. If you hold multiple stalled commercial claims, use the portfolio-sale option through the same inquiry and identify the accounts as a portfolio.