Small collection agency with a collector team

Landlords, utilities, clinics, gyms, property managers, medical and dental practices and other businesses with many small unpaid accounts.

A commission on recoveries under contracts with each client, plus a flat fee on some accounts. Income grows as you add clients and collectors.

• Managing and training staff
• Knowing the collection rules
• Sales to win client contracts
• Organising accounts and reporting

• Collection agencies are licensed in most provinces, and collectors may also need to be registered, so check your province's requirements
• Trust account, record keeping and audit rules apply to client money, so ask an accountant to set this up properly
• Consumer collections carry strict rules on harassment, contact times and what you can say, and Quebec has its own rules and French-language requirements
• Complaints and regulator action are a real risk, so train staff and keep call records
• Check workers' compensation (WCB/WSIB) once you hire
• Privacy law covers the personal information you hold, so check your obligations

Startup costs are typically around $12,000 to $60,000, depending on your office, collections software and team size. Monthly revenue is estimated at roughly $8,000 to $35,000, depending on your client contracts and caseload. These are estimates only.

Collection agencies are licensed in most provinces, and collectors may also need to be registered, so check your province's requirements. Quebec has its own rules and French-language requirements. Ask an accountant about trust account, record keeping and audit rules for client money.

Consumer collections carry strict rules on harassment, contact times and what you can say. Complaints and regulator action are a real risk, so train staff and keep call records. Also check your privacy law obligations and WCB/WSIB once you hire.