You need one or the other. Rarely both at the same time, and never neither.
Someone told you to call a lawyer. Someone else told you a collection agency would be faster and cheaper. Both are correct, in different situations, and choosing the wrong one costs you either money or time — usually both.
The answer is not a matter of preference. It is a matter of what the debt looks like.
When you need a collection agency
The debt is clear. The invoice exists. The contract is signed. The goods were delivered, the service was performed, and the debtor has not raised a substantive objection — they have simply not paid. This is not a legal problem. This is a commercial problem with a procedural solution.
A collection agency handles the amicable phase (demand letters, calls, negotiation in the debtor's language) and, if that fails, engages local counsel in the debtor's jurisdiction to file through the appropriate fast-track procedure. Germany's Mahnverfahren. France's injonction de payer. The Dutch kort geding. The agency manages the process end-to-end, including enforcement.
The cost model is contingency: 5% to 25% of the recovered amount, paid only on success. Nothing upfront. Nothing if the debt proves uncollectable. The agency's incentive is identical to yours — get paid.
This model fits the vast majority of international B2B debts. Clean invoices. Acknowledged obligations. Debtors who can pay but have chosen, for now, not to.
When you need a lawyer
The debt is disputed. The debtor says "I don't owe this" — and means it, or at least has a plausible argument. The contract is ambiguous. The scope of work is contested. There are quality claims, delivery disputes, or force majeure arguments that require judicial interpretation.
You also need a lawyer if insolvency proceedings are underway (creditor claims must be filed through counsel in most jurisdictions), if you need pre-judgment relief (asset freezing orders, injunctions), or if the case involves regulatory complexity — sanctioned jurisdictions, government contracts, or cross-border enforcement where treaties are in play.
The cost model is hourly: €200 to €500 per hour for experienced cross-border commercial lawyers, with retainers of €2,000 to €10,000 before work begins. The meter runs regardless of outcome. A straightforward disputed debt of €50,000 can generate €8,000 to €15,000 in legal fees. A complex one generates more.
The arithmetic
For an undisputed €50,000 debt:
Collection agency: contingency at 12%, you net €44,000 on success. Total cost if unsuccessful: €0.
Lawyer: retainer plus hourly billing, you spend €8,000 to €12,000 in fees. Net recovery on success: €38,000 to €42,000. Total cost if unsuccessful: €8,000 to €12,000.
The agency route is cheaper on success and free on failure. The lawyer route is more expensive in both outcomes. For undisputed commercial debts, this arithmetic is consistent across jurisdictions and debt sizes.
For a genuinely disputed €50,000 debt, the comparison is different. The agency cannot resolve a dispute that requires judicial interpretation. Attempting to collect a contested debt through amicable pressure wastes time, may breach local regulations, and gives the debtor grounds to claim harassment. The lawyer is not optional — the lawyer is the only route.
The hybrid
Some debts start clean and become complicated. The debtor receives the collection letter and suddenly discovers a quality objection they had not mentioned in six months of trading. This is common enough to be a category.
A professional collection agency handles this transition internally — local counsel is already in the network. The case shifts from amicable to legal without a gap, without you briefing a new firm, and without the debtor gaining a window to restructure. The agency manages the process; the lawyer handles the procedure. You receive one invoice, not two.
The question to ask yourself
Is the debtor saying "I can't pay" or "I don't owe this"? The first is a collection case. The second is a legal case. If you are not sure which you are hearing, a professional assessment will tell you within 48 hours — before you commit to either route or either fee structure.
Free case assessment. 48-hour written response. If the debt isn't worth pursuing, we'll say so.