How to Start a Collection Agency

Perhaps you’ve been in the collection industry for years, and you wish to join the market and start your own collection agency. That would not be a problem anymore, since this article has been intended with you in mind, and will provide you with a good business start-up guide to starting your own collection agency business.

If you are good at talking with people and convincing them to pay off their debts, then you can definitely start your own collection agency business.

What does it take, other than that skill, to start this venture?

Know Your Laws

Since collecting debts usually involve high amounts of money, you need to know the legal ins and outs of the trade. Specifically, you need to obtain yourself a copy of the Fair Debt Collection Practices Act as its provisions dictate your actions in facilitating your collection agency. The FDCPA is essential and important because it can definitely steer you away from legal trouble when you call or make correspondence with the debtors. You wouldn’t want to end up in trouble after saying the wrong words in a collection letter or conducting yourself wrongly when talking to a client over the phone.

Office Equipment for Collection Agency

The collection agency business requires data – electronic and in paper form – to be kept and maintained. This means that you need to have some basic office equipment like filing cabinets and a few computers. This would dominate your start-up costs and financing, as computers and filing cabinets need quite some money to acquire. You would need to lease office space as well. The amount you would need in order to start your venture would depend on how many equipment you will be procuring as well as the terms of your lease.

You would also need to procure debt collecting software, many of which can be bought from the Internet. If you can afford it, you can hire the services of a programmer to build you customized debt software.

A Definite Market

As a collector, you would need to know who your clients could be, and how you can get them to avail of your agency’s services. Oftentimes, collection agencies are subcontracted by businesses that need to get after debtors. To get in touch with these prospects, you would need to get yourself recognized. You can either join the chamber of commerce or rotary clubs in your area, or volunteer your services for businesses or companies that need collectors in their credit departments.

Of course, you would need to have a good marketing strategy as well. The Internet is certainly the best place to let yourself known if you wish to expand past your local area. Get yourself an SEO specialist and a web designer, build a website and optimize it so it can be noticed among search engine results.


  • SANDIP SISODIA said on January 10, 2010
    I'm planning to start a Collection Agency in GUJARAT INDIA(BARODA). I need all the input and suggestions. Please help. Many thanks.
  • Ryan Colville said on February 9, 2011
    i want to start a recovery / collection , i would like to know what are the bylaws i have to follow / do i need any licensing / whom do i approach for business ... i'm based in mumbai , been in business of sale of insurance products n property sales for the past 5 year ... pls reply on
  • amit chauhan said on April 6, 2012
    i want to start a collection business for usa , i would like to know what are the bylaws i have to follow how to get licensing . whom do i approach for business ... i'm based in delhi , been in business of sale of insurance products, mortgage and technical support from last 2 years ... pls let me know on phone number 09891120969
  • Pranav Soni said on October 17, 2012
    I am starting a collection agency in vadodara (gujarat) India, Now current work is MTS Boradband recharge collection in whole vadodara city cover. contact # 098 795 90751
  • Ashish Jani said on January 31, 2013
    i'm planning to start a collection in Gujarat(Morbi), Please help me fast. Thanks, mo.08866138866
  • Arif shaikh said on August 1, 2013
    I want to start a recovery & collection in Ahmednagar(Maharashtra). been in business of sale & recovery.I need all the input and suggestions. Please help. Many thanks.plz Contact me 09765786024.
  • rahul shah said on September 7, 2013
    i want to start post paid connection collection agency in Ahmedabad and sales agency post paid connection so help me for guideline for start business. mobile no. 9904399100
  • Sunny Khandait said on September 12, 2013
    I want to start a US based debt collection agency at Ahmedabad. Please suggest me whom to contact. Contact me at 8690636026
  • Rohit Gupta said on October 26, 2014
    i want to start a recovery agency i need the required formalities.
  • Nikit said on January 24, 2015
    I want to start recovery agency in ahemdabad. Any one wants to be my partner so pls contact me on 09824697777
  • A Sai Giridhar said on February 5, 2015
    I have been in the Banking and Finance industry for 8 years now. In Banking I have been part of, credit, sales, operations and collections. I would like to start a collection agency in either Hyderabad or Bhopal for collection of dues especially of Banks and mobile operators. Please let me know how I can begin, Regards, A Sai Giridhar, +91-9177269481
  • vaibhav tare said on April 8, 2015
    I have working finance sector last 10 years & want to start own recovery agency so pls do guide me. email-
  • Manohar.M said on May 20, 2015
    I am working as a branch manager in recovery and collection agency. now I want to start my own business. kindly guide me to start an collection agency. my city is puducherry.
  • Ramnivas Deora said on June 12, 2016
    I want to start a recovery & collection in jodhpur(Rajasthan). been in business of sale & recovery. I need all the input and suggestions. Please help. Many thanks.plz Contact me 09680129924.
  • param said on June 25, 2016
    We are a Collection Agency in Mumbai Handling different indian & international Banks woff want to tie up with new partners with requisite infrastructure with sound financial background.please send your applications on
  • ABHINEET said on September 21, 2016
    hi i want to start collection agency business in new delhi, i have already doing loan business running so i start also a recovery agency also plz reply me, mobile no -9953588944 & e mail -
  • SUBHASH MEHTA said on December 30, 2016
    I want to open collection agency in city banswara ,rajsthan. please guide me about legal formality for open collection agency . and how i approach govt. and private bank for their debitors collection. please urgent guide me. ADDRESS--SUBHASH MEHTA S/.HIMMATRAM MEHTA SHYAM PURA SHIV COLONY BANSWARA,DIS.-BANSWARA [RAJSTHAN] 327001 MOB.NO.--9001440274
  • shah jai said on February 6, 2017
    we are planning to start a Collection Agency in GUJARAT. I need all the input and suggestions. Please help.MAIL ID
  • Mandar pimputkar said on June 17, 2017
    Want to start a collection agency for bank recover, having 10 years experience in this field. Please guide me. Thanks. Mandar pimputkar, 9723454709
  • Shine Enterprises said on February 3, 2018
    i'm planning to start all loans Recovery in Ranchi Jharkhand, Please help me fast. Thanks, mo.8123567226
  • ritesh said on April 7, 2019
    I start Business Collection Agency,My contact no 8975973562.My Location: Nallasopara


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