Home-Based business-to-business collections

Small suppliers, trades, wholesalers, freelancers and professional firms with overdue invoices they don't have time to chase.

A commission on money recovered, often a percentage that rises on older or harder accounts, sometimes with a small flat fee for setting up a file.

• Calm, firm and polite on the phone
• Negotiating payment plans
• Careful record keeping
• Understanding the rules on what you can and can't say

• Expect to need a collection agency licence before you start trading. Rules differ by province and some may exempt business-only collections, but only rely on an exemption once your provincial regulator has confirmed it
• Some provinces may require bonding or a set business address, so check whether a home office is allowed
• If you handle client money, ask your provincial regulator about trust account and reporting rules
• Rules on contact times, harassment and what you can say to debtors differ by province, and Quebec has its own rules and French-language requirements
• Privacy law covers the debtor information you hold, so check your obligations
• Income is uneven because you are paid only on recoveries, so keep a cash buffer
• Check with a lawyer before suggesting legal action, since only licensed professionals can give legal advice

Startup costs are typically around $3,000 to $15,000, depending on your licensing, software, phone and office setup. These are estimates, so check what your provincial regulator requires before budgeting.

Monthly revenue is typically around $2,000 to $10,000, depending on how many invoices you recover and your fee share. Income is uneven because you are paid only on recoveries, so keep a cash buffer.

Expect to need a collection agency licence before trading. Rules differ by province, and some may exempt business-only collections, but only rely on an exemption once your provincial regulator has confirmed it. Also check bonding, address rules and whether a home office is allowed.