There is a massive catch 22 with high risk Payment processing in the collection industry.
As a collection agency, everyone will require you to personally guarantee everything including a multiple year lease, Payment processing, vendors, business loans etc.
Debt buyers are VERY discriminated against in business.
Starting a collection business from home involves getting your space ready and registering your business at the local, state and federal level for it to be a legal entity operating according to the law.
Like any business, starting this type of business also requires you to do some planning to make sure that you launch and run your business to achieve success. Clean out a spare bedroom, finished attic or finished basement for your office.