QUESTION ON How to Start a Collections Agency Business from Home
I have been a collector for three years now. I have thorough knowledge about the consumer and third party collections. I would like to know how I would go about starting my own home-based collection agency. I need to find out about the check laws in Texas, the bonding requirements in Texas (I don’t need a license to practice), and how to market. I already have some money and equipment that I have accumulated. I just need to know where to start. Please help!
– Catrina, Texas
ANSWER
Advice by Nach M Maravilla
Publisher, Powerhomebiz.com
Dear Catrina,
Since you have the experience and thorough knowledge of consumer and third party collections, and seem to love the business, you are indeed on the right track to think of establishing your own collection agency. Of course, you can start on a smaller scale by operating a collection office within the limits of the City or County where you are located. Then, as the business improve you can expand Statewide and maybe later, on a nationwide scale.
We found web sites where you may check all the Credit and Collection Laws in Texas. And best of all, we suggest that you consult a lawyer before you start on your own. There may be some legal items that you may have to discuss with a qualified professional to help and protect you and your future operation.
We also suggest that you check out the business division at your City Hall and inquire about the legal requirements of operating a collection agency like bonds, etc.
Here are web sites that may help you: http://www.lawdog.com/states/tx/st1.htm
http://www.carreonandassociates.com/collectionlaws.htm
Good luck!
Nach M Maravilla
Recommended Resources on How to Start a Collections Agency Business from Home
- Starting a Collection Agency, How to make money collecting money Third Edition
- Personal Finance 101 – A Beginner’s Guide: What Every High School and University Student Needs to Know About Debt, Credit, and Money!
- How to Start a Home-Based Collection Agency
- How to Help You Get Paid, Credit & Collections Forms & Letters
Article originally published in June 2003. Updated February 15, 2012
