Collection Agency

Startup Costs: $2,000 - $10,000
Part Time: Can be operated part-time.
Franchises Available? Yes
Online Operation? No

If you have had past experience in the field of debt collection, then a logical new business venture for you to start is a collection agency operating from a homebased location. Generally, the duties of a collection agency focus on collecting financial debts typically owed to a company or business in a nonharassing manner and utilizing the telephone and official sounding letters as your main debt collection tools. Securing clients for the service is extremely easy, due to the simple fact that you will not be paid for your service unless you are successful in collecting the debt owed. Rates for the services are based on a percentage of the amount of money that is collected, and the longer the debt has been outstanding, the higher the fee charge to collect the debt. Typically, a 25 percent fee would be charged on successfully collecting debts that have been in arrears for up to 180 days. Beyond 180 days the fee could increase to as much as 50 percent of the total debt collected.