Licensed collection agency with a small team
Run a licensed agency recovering overdue accounts for medical, utility or service clients with a few trained collectors.
- $15k-60k
- Full-time
- Own premises
- Licence or permit needed
Estimates for a small start in the US, not guarantees.
Official data
2,877 US businesses with employees in this field, -7.0% in a year
NAICS 561440 “Collection agencies”. Source: U.S. Census Bureau, County Business Patterns 2023.
What it is
A fully licensed third-party agency working on behalf of creditors such as clinics, landlords or local utilities. A small team contacts consumers by phone, mail and compliant digital channels, verifies debts and arranges payments, following federal and state collection rules.
Your first three steps
- Research your state's collection agency licensing requirements, bonding and any owner or manager qualifications
- Get a compliance attorney to review your policies and scripts, and choose collection software with call recording and secure data handling
- Pitch local practices and property managers on a pilot placement of older accounts
Who pays
Creditors that place unpaid accounts with you: medical and dental practices, property managers, utilities, schools and similar organizations.
How it makes money
A contingency percentage of the money collected, which varies by account type and age. Revenue depends on the volume and quality of accounts placed with you.
Skills that help
- Compliance awareness
- Staff training and management
- Negotiation and empathy
- Sales to creditors
- Organizing records
Watch out for
- Federal rules (the FDCPA and CFPB Regulation F) and state laws can apply, so verify them with a qualified attorney
- License, surety bond and trust account requirements differ by state, and you may need licenses in states where your debtors live
- Call and text rules (such as the TCPA) and debt verification duties carry real penalties
- Check errors and omissions, general liability and cyber insurance, plus workers' compensation once you hire
- Protect personal and medical data, since privacy rules like HIPAA may apply to some clients
- Complaints and lawsuits are a real risk, so budget for compliance and training
Deep research report · US
Everything you need to start: licensed collection agency with a small team
Researched with live web search for United States: real startup prices, the licences and rules, what others charge, a break-even example, how to find your first customers and a 30-day launch plan. With sources.
- Startup costs with real prices
- Licences, registration and rules
- Pricing: what others charge
- Break-even example
- Finding your first customers
- 30-day launch plan
- Risks and how to reduce them
Questions people ask
How much does it cost to start a collection agency?
Startup costs are typically estimated at around $15,000 to $60,000, depending on licensing, surety bonds, software, insurance, office space and staff training. Budget for compliance and training, as complaints and lawsuits are a real risk.
How much can a small collection agency earn?
Monthly revenue is typically estimated at around $5,000 to $25,000, depending on how many creditors place accounts with you, the size of those accounts and how much your team recovers. Expect roughly full-time hours to run it.
What laws and licenses apply to collection agencies?
Federal rules such as the FDCPA and CFPB Regulation F, plus state laws, can apply, so verify them with a qualified attorney. License, bond and trust account requirements differ by state, and call and text rules such as the TCPA carry penalties.
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