There are only 5 companies (give or take) in the US that process Payments for collection agencies.They all require several years of business Bank statements to get approved in order to show them that you're legitimate.And the final piece of the puzzle, Payment processing.
I could go more in depth about all of this, but if you don't have $20k to invest (and possibly lose) and a contact in the industry that you trust with… Feel free to message me if you have any more specific questions.
I can explain liquidation rates, debt prices, contingency rates, laws, risks and anything else you'd want to know about but I'm typing those on a cell phone and it's too hard to elaborate on everything typing this way.
I see the discrimination every day running my agency.
Everyone assumes the worst about my company before getting to know us.
That would be enough money to buy a slightly decent portfolio.
Rent office space and hire 2 collectors for about a month as long as there was money coming in. it will put you out of business, get sued and your first month, it will put you out of business.
I apologize if this sounds unorganized or if there are any typos or strange auto-corrects.
A collection business is an easy business to start and run from your home office because it does not require you to meet with clients face-to-face, but instead involves contacting debtors by mail and by phone.
Doing things the wrong way can lead to being shut down by any number of regulatory agencies and your income is going to come from people that despise the service you provide.
I'm happy to advise about the industry and can show you an article that I've written for a trade conference with the DBA that goes more into depth on all of these topics. Have an accountant that is familliar with Collections and make a solid business plan.