How to Start a Collection Agency
Perhaps you’ve been in the collection industry for years, and you wish to join the market and start your own collection agency. That would not be a problem anymore, since this article has been intended with you in mind, and will provide you with a good business start-up guide to starting your own collection agency business.
If you are good at talking with people and convincing them to pay off their debts, then you can definitely start your own collection agency business.
What does it take, other than that skill, to start this venture?
Know Your Laws
Since collecting debts usually involve high amounts of money, you need to know the legal ins and outs of the trade. Specifically, you need to obtain yourself a copy of the Fair Debt Collection Practices Act as its provisions dictate your actions in facilitating your collection agency. The FDCPA is essential and important because it can definitely steer you away from legal trouble when you call or make correspondence with the debtors. You wouldn’t want to end up in trouble after saying the wrong words in a collection letter or conducting yourself wrongly when talking to a client over the phone.
Office Equipment for Collection Agency
The collection agency business requires data – electronic and in paper form – to be kept and maintained. This means that you need to have some basic office equipment like filing cabinets and a few computers. This would dominate your start-up costs and financing, as computers and filing cabinets need quite some money to acquire. You would need to lease office space as well. The amount you would need in order to start your venture would depend on how many equipment you will be procuring as well as the terms of your lease.
You would also need to procure debt collecting software, many of which can be bought from the Internet. If you can afford it, you can hire the services of a programmer to build you customized debt software.
A Definite Market
As a collector, you would need to know who your clients could be, and how you can get them to avail of your agency’s services. Oftentimes, collection agencies are subcontracted by businesses that need to get after debtors. To get in touch with these prospects, you would need to get yourself recognized. You can either join the chamber of commerce or rotary clubs in your area, or volunteer your services for businesses or companies that need collectors in their credit departments.
Of course, you would need to have a good marketing strategy as well. The Internet is certainly the best place to let yourself known if you wish to expand past your local area. Get yourself an SEO specialist and a web designer, build a website and optimize it so it can be noticed among search engine results.
37 Comments
- I'm planning to start a Collection Agency in GUJARAT INDIA(BARODA). I need all the input and suggestions. Please help. Many thanks.
- i want to start a recovery / collection , i would like to know what are the bylaws i have to follow / do i need any licensing / whom do i approach for business ... i'm based in mumbai , been in business of sale of insurance products n property sales for the past 5 year ... pls reply on colvilleryan@gmail.com/09619203870
- i want to start a collection business for usa , i would like to know what are the bylaws i have to follow how to get licensing . whom do i approach for business ... i'm based in delhi , been in business of sale of insurance products, mortgage and technical support from last 2 years ... pls let me know on chauhan.amit02@gmail.com phone number 09891120969
- I am starting a collection agency in vadodara (gujarat) India, Now current work is MTS Boradband recharge collection in whole vadodara city cover. contact # 098 795 90751
- i'm planning to start a collection in Gujarat(Morbi), Please help me fast. Thanks, mo.08866138866
- I want to start a recovery & collection in Ahmednagar(Maharashtra). been in business of sale & recovery.I need all the input and suggestions. Please help. Many thanks.plz Contact me 09765786024. arifms17390@gmail.com
- i want to start post paid connection collection agency in Ahmedabad and sales agency post paid connection so help me for guideline for start business. mobile no. 9904399100
- I want to start a US based debt collection agency at Ahmedabad. Please suggest me whom to contact. Contact me at 8690636026 sunnykhandait@gmail.com
- i want to start a recovery agency i need the required formalities.
- I want to start recovery agency in ahemdabad. Any one wants to be my partner so pls contact me on 09824697777
- I have been in the Banking and Finance industry for 8 years now. In Banking I have been part of, credit, sales, operations and collections. I would like to start a collection agency in either Hyderabad or Bhopal for collection of dues especially of Banks and mobile operators. Please let me know how I can begin, Regards, A Sai Giridhar, +91-9177269481 aajgiri@gmail.com
- I have working finance sector last 10 years & want to start own recovery agency so pls do guide me. email- tarey101@gmail.com
- I am working as a branch manager in recovery and collection agency. now I want to start my own business. kindly guide me to start an collection agency. my city is puducherry.
- I want to start a recovery & collection in jodhpur(Rajasthan). been in business of sale & recovery. I need all the input and suggestions. Please help. Many thanks.plz Contact me 09680129924. devraram@ymail.com
- We are a Collection Agency in Mumbai Handling different indian & international Banks woff want to tie up with new partners with requisite infrastructure with sound financial background.please send your applications on paramgv14@gmail.com
- hi i want to start collection agency business in new delhi, i have already doing loan business running so i start also a recovery agency also plz reply me, mobile no -9953588944 & e mail - besoyaabhi@gmail.com
- I want to open collection agency in city banswara ,rajsthan. please guide me about legal formality for open collection agency . and how i approach govt. and private bank for their debitors collection. please urgent guide me. ADDRESS--SUBHASH MEHTA S/.HIMMATRAM MEHTA SHYAM PURA SHIV COLONY BANSWARA,DIS.-BANSWARA [RAJSTHAN] 327001 MOB.NO.--9001440274
- we are planning to start a Collection Agency in GUJARAT. I need all the input and suggestions. Please help.MAIL ID :sjay9119@gmail.com
- Want to start a collection agency for bank recover, having 10 years experience in this field. Please guide me. Thanks. Mandar pimputkar, 9723454709
- i'm planning to start all loans Recovery in Ranchi Jharkhand, Please help me fast. Thanks, mo.8123567226
- I start Business Collection Agency, My contact no 8975973562. My Location: Nallasopara
- I have worked in the finance sector for the last 10 years & I want to start my own recovery agency so pls do guide me.
- I am looking to start a collection agency in Bangalore please contact me at 8217735815.
- I need to start a debt collection agency in Delhi/NCR. I have office space and computer equipment. I have no clue about the legal documentation and licensing and I am unable to get links for my business startup. You can please approach me on 9266655589.
- Which license require from RBI to start a B2C collection agency
- I want to start a collection Agency.. I have working financial sector from last 5 years. I have office space and computer equipments.. Please guide me no clue about legal documentation and license... Please help me.. Ph:7995064012
- I want to start collection agency please help me
- I want to start collection agency in pimpri chinchwad pune Call me 7397972328 , 9518516808
- I want to star collection agency in hyd I have office space & computer all accessories I need help plz guide me 8328302817
- hlow, i arvind kumar,from jharkhand,want to start a recovery agency for all bank in jharkhand.plz email me urgently that how you can guide or help me. here my email.id. arvindraj52@gmail.com
- I want a debt collection project. I have my own setup and good experience team can you provide me any project my ph 9716855876 thanks
- I am starting a new debt collection agency. Please, suggest to me what I can want documents for it. Name. Sachin Rajput Mo. 8866190935, Location. Bardoli (Surat)
- I am Pushpendra from Indore, Madhya Pradesh, and I want to start a debt recovery agency in Indore.
- Hello, I'm Ankush Tripathi from Delhi and I want to start a recovery agency for banks in Delhi and Uttar Pradesh. Please email me urgently with guidance and help on how to get started. My email id is ankushseo8@gmail.com.
- Hello, I am Manikanta Shetty; I have started my collection/recovery agency in Bangalore recently and am looking for Clients. Please email me so it would be helpful. Email id Magnifyingservices@gmail.com Ph: 9606190954.
- I would like to request. TO START A COLLECTION AGENCY AND NEED TO SUGGESTIONS. Please help me out with this
- Wants to start a collection agency
Comment
Categories
- Franchise Opportunities
- Wholesale Business Opportunities
- Small Manufacturing Business
- Farming Business Ideas
- Unique Business Opportunities
- Shop Business Ideas
- Small Business Opportunities
- Startup Company Ideas
- Home Based Business Opportunity
- Rural Business Opportunities
- Tips for Buying and Selling
- Starting Rental Business
- Ideas for Small Business
- Free Business Ideas
- Internet Business Ideas
- Store Business Opportunities
- Entrepreneur Business Idea
- Retail Store Ideas
- Service Business Ideas
- Advice for Small Business
- Financing a Small Business
- Restaurant Business Opportunities
- Small Business Articles
- Business Marketing and Advertising
- Repair Business Opportunity
- Professional Career Opportunities
- Business Insurance Information
- Instructor Guides
Shop Business Ideas
- Starting a Pawn Shop Business
- How to Start a Meat Shop?
- How to Start Auto Body Shop?
- How to Start a Donut Shop
- How to Open a Sandwich Shop
Store Business Opportunities
- Starting a Grocery Store Business
- Starting a Fashion Clothing Store
- How to Open a Liquor Store
- How to Start a Drug Store Business?
- How to Start a Hardware Store?
