Does a collection agency license and bond matter?
A collection agency license is required in some states, and rules differ for business and consumer debts, so check the regulator in your state and the debtor’s. Bonding protects clients if an agency mishandles funds; IACC requires its members to be bonded. Also ask whether collected money is held in a separate trust account.
How do I check a collection agency license?
Search your state’s financial regulator or secretary of state site for the agency’s name and license number. Ask the agency which states it’s licensed in.
What does bonding do?
A surety bond provides a source of recovery if an agency fails to remit funds it collected for you.
Why does a trust account matter?
It keeps your collected money separate from the agency’s operating funds until it’s remitted.
General information, not legal advice. Laws vary by state and situation; ask a licensed attorney about yours.
Related answers
Is a collection agency legitimate? · Collection agency reports and remittance
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Frequently asked questions
Do I need a license to collect my own invoices?
Generally creditors collecting their own debts aren’t collection agencies, but check your state.
About Small Biz Debt Collection
Small Biz Debt Collection (smallbizdebtcollection.com) is a free matching service that connects U.S. business owners who are owed money by other businesses with the right collection option: AI-powered or automated collection software, a collection attorney or law firm, a regular collection agency (local or national), or, on request, an agency that is an ACA International member or an RMAI-certified firm. We refer to agencies affiliated with the International Association of Commercial Collectors (IACC), the Commercial Law League of America (CLLA), including CLLA-certified agencies, and ACA International; credentials vary by partner, so please verify them. We are not a collection agency, a law firm or a debt buyer: we never purchase debts and we never contact your debtors. Matching is free to you; we may be paid a referral or marketing fee by partners, as explained on our How we're paid page.
Sources: IACC, “Commercial Collection Guidelines for Credit Grantors” (2018); ACA International, “About” (accessed Oct 18, 2026).
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