Collecting bad debts in Ontario | CFIB
Are you having trouble getting paid for your goods or services? Do you need some new ideas to collect outstanding account receivables? Resources and services are available to help you with this important task.
Where do I begin?
The Business Development Bank of Canada (BDC) has helpful information on how to get paid by your customers
You should give your customer a letter outlining how much they owe, when it was due, and warning them that if they don't pay by a specific date, you will be sending it to a collection agency or taking the appropriate legal action.
Should I hire a Collection Agency? Where do I find one?
If you do not wish to launch a legal proceeding through the Small Claims Court, you could recover your money by hiring a collection agency. Agents’ fees for service are often a percentage of the outstanding debt they collect. You should be able to find a list of collection agencies at the Yellow Pages website.
Is Small Claims Court an option for me?
You can consider filing a claim in Ontario Small Claims Court if the money owed is less than $35,000.
How can I find a lawyer?
Contact the Lawyer Referral Service to seek general legal information. The Law Society of Upper Canada has a Lawyer Referral Service which affords you up to 30 minutes on the phone with a lawyer or a paralegal in the area of expertise you need for free.