i had a client default for a similar amount, i looked into collections and decided to write it off. at that amount it wasn't worth pursuing, more of a pain than the amount was worth. it certainly sucked, though
small claims court would be your best course of action.. collections will just make calls to the debtor. They likely would attach it to his credit report, but that will not make him pay unless he is wanting to buy a house or otherwise needs his rating to help with the purchase. In which case the collection agency gets a cut and likely settles for a lower amount to get paid from the guy.. So.. smc you will win a judgement asap, and at some point he may need to pay it off. but you would not by paying a % to the collection agency.
consult an attorney before a debt collection agency. the attorney will take a percentage. That means they have greater incentive to collect more.
.. but in the case of $2000, will likely do nothing more than send a demand letter. Worthless. Small claims court is where it's at here. $175 or so smc fee, you are both in front of the judge, plaintiff wins. Done. He may not get a check the next day, but he won't be giving any % to anyone if he does.
possibly a commercial lien through administrative process via notary presentments. notice & demand to acquire a summary judgment then default judgment then a commercial lien and all without stepping foot in a courthouse or hiring a law merchant. I havnt done this myself but have seen it work.
My wife and I do this all the time. You have to go to court first to get a judgement. Then you can use a collection agency. We use a local company and we get about 50% of every dollar they collect. They seem to collect about 20% of what we give them. You can do the math from there. We have only been doing it for about 5 years and I do think we will collect more over time as these items sit on their credit report. If I were in your shoes I would let this go. Your time is better spent running your business.