Start a small regulated debt collection agency

Creditors such as small lenders, landlords, utilities suppliers, healthcare and service providers, and businesses with unpaid accounts.

Commission on the amounts you collect, or a fee per account, agreed in contracts with each creditor client.

• Understanding of regulation and compliance
• Empathy and firmness on the phone
• Managing staff and processes
• Winning contracts with creditors

• FCA authorisation is likely to be needed for consumer debts, and the application takes time and costs money, so check current requirements and fees
• Startup costs are higher than many service businesses: besides the FCA application fee, budget for compliance advice, systems, insurance, and enough funds to cover several months of running costs before commission arrives
• Treating customers in vulnerable circumstances fairly is a key regulatory focus, so staff need training
• Data protection duties and ICO registration
• Complaints may go to the Financial Ombudsman Service, so keep clear records
• Contracts with creditors can be slow to win and payment depends on what you recover, so plan your cash flow
• Check whether you need professional indemnity insurance, and employer's liability insurance once you hire

Startup costs are typically around £25,000 to £90,000, depending on the FCA application fee, compliance advice, systems, insurance and the funds you need to cover several months of running costs before commission arrives.

Monthly revenue is typically around £2,000 to £10,000, depending on the contracts you win and the debts you recover. These are estimates only, and contracts can be slow to win, so plan your cash flow.

FCA authorisation is likely to be needed for consumer debts, so check current requirements and fees. Also check how to treat customers in vulnerable circumstances, ICO registration, Financial Ombudsman complaints and your insurance needs.