Child care providers - Small Claims Court & Collection Agency?

I'm planning on opening a day care. In my contract I have written that non-payment will be turned over to a collection agency. How do you get in touch w/ a collection agency? What is the difference between taking someone to small claims court & calling a collection agency? How do you get in touch w/ a small claims court? I want to have all this figured out before my business starts. This is for a Licensed home day care. I have seen it on other day care contracts. It's to get respect for your business & to ensure your receive money from parents who try to "rip you off".

From my understanding a collection agency gives you the money owed...then goes after the person for the money to pay them back. If this is a small daycare I would suggest staying with a local collection agency; which you can probably find in the Yellow Pages.

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