STARTUPBIZHUB

Starting a Commercial Debt Collection Agency

In starting a commercial debt collection agency, you have to consider first the essential knowledge it takes to run such a business. Know how with regards to management and finance are the key to get this up and running, and to ensure that the business runs smoothly.

The goal in this type of business is to get the debtors to pay their debt, while keeping the interaction as courteous and professional as possible.

Several financial firms seek extenuated help from debt collection agencies in order to collect debt. To start this kind of business the key is to keep in mind the goal of the company--to extract by any legal means necessary, the debt of the debtor.

Since this is a legal practice, it is important to have legal counsel in this type of business. Attorneys, lawyers and such are important assets to the company. Those with a finance degree, and accountants are also important.

Recording and bookkeeping is essential in this type of business since you will be taking plenty of notes and documentation. Gone are the days of pen and paper, now everything is modernized in a computer system so it is best to have computer technicians to store, protect and maintain information and documentation.

You must also bear in mind the scope of your business. Many large scale debt collection agencies have a wide national and international span. In starting the business however it is best to keep to the locale. Mark down your territory and scope.

Once you have drafted out your staff, it is time to set in a budget allocation for all the finances. Keep in mind that the staff is just as important as the equipment, so allocate the budget accordingly. Start with a small staff to ensure the depth of quality service. Connections to neighboring businesses of similar stature are also important so as to ease the direct work load on your company. And instead of having a stay in lawyer, you may also consider a partnership with a law firm, when security and investigation is concerned, maybe a partnership with a security agency or investigators.

Consider also how you will start this business, if the debt collectors of your agency will collect debt in person or through calls, or both. Starting out usually is through informing the debtor through phone calls, emails, snail mails or any other form of communication. It is after all else fails that the debt collector will face the debtor in person. Though this may not always be the case, either way, documentation and book keeping of all transactions with the debtor is very important and crucial.

After settling the needs of your agency with regards to staffing, supplies and of course the locale of your business, it is time to spread the word through advertising. There are many different ways to get the word around and the most popular of which is through the internet. Online advertising is not only the most popular to date, but also the cheapest since all you need is a working computer and an internet connection to advertise your agency. Setting up an ad in a local newspaper is another option.

Since the manpower will usually start small, partnerships with other firms and agencies is a good option. It is only after considering the staff and the equipment necessary to maintain bookkeeping that you can start allocating the budget. Promotion and advertisement of your agency follows after you have set up your business.

<< Starting a Takeaway Food Stand Business
Customized Paper Bags Business >>

1 Comment

  • Anthony stephens said on March 29, 2013
    What do I need to know about opening a commercial collection agency in New York city

    Comment

    (All the above fields are required.)

    Categories

    Popular Articles

    Join Our Newsletter