How to Start a Debt Collections Business

Hyper inflation has made it difficult for the people to live with their income so they have to take the debt and once you are drowned in debt, you can’t swim out of the sea of debt because it just keeps on piling at an exponential rate while your salary grows at a speed of snail. There is a need for debt collectors and setting a business of debt collection can help you earn some huge returns without going through a lot of trouble. The duty of a debt collector is to assist the organisation in collecting their debts by calling the debtors or sending them reminders via emails. The overhead cost of this business is pretty minimal and can be started at the home if the person is well versed with the technology and finance. It also helps in escaping the corporate slavery which is very tiring and doesn’t deserve the same attention as the self employment.

Instructions

  • 1

    Estimate the costs of start up and analyse what will be required by you to begin. Some basic requirements that you will need to bring a start to the new venture is a personal computer, fax machine, cell phone and a printer. You can get access to all these items within the overall cost of just $1500 but not without bargaining. However, it is not the end of the start up costs because the fees paid to get access to pay online investigation companies that will help you in tracking the debtors.

  • 2

    You should get some debt collection experience before starting your own business.

  • 3

    Advertise your business through different mediums. Use the cheapest way that has the biggest reach at the start and then chose more elite methods to attract big companies.

  • 4

    Make a finance proposal that will include the potential income that you can make and then see if you can afford.

  • 5

    The commission of your work can be around 20 percent to 30 percent if the debtor can easily be tracked but there is no doubt that you can even get the 60 percent to 70 percent of the debt collected if you can track down an old customer so don’t worry about the payback because it will come if you work with honesty.

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