The fixed-fee has three main advantages:

• Creditors who give large balance accounts to agencies in fixed-fee arrangements do so much earlier than when they use percentage arrangements.(These agencies do not keep large percentages of the recovered money, so they are used as soon as in-house procedures start to fail). Since fixed-fee agencies receive accounts while they are still highly recoverable, 90 - 120 days past due, recovery rates often can be double that of percentage arrangements;
• Fixed-fee also means that, since their profit margin is the same regardless of account size, these agencies will place as much effort in recovering small balances as they will on larger ones; and
• In fixed-fee arrangements, because the agencies receive no part of the recovered money, the money is sent directly to the creditor, not to the collection agency first. This increases cash flow.