How to Start a Home Based Debt Collection Agency

Bills and Debt

As odd as it sounds, now is the perfect time to start a home-based debt collection agency. It's no secret that many people are falling behind on their outstanding debts. From mortgages to loans to credit cards, there is an increased need for debt collection services. While starting a home-based debt collection agency may not be have been the top business on your list to start, it is definitely a much-needed service. Here's how to go about starting your own home-based debt collection agency.

Difficulty:

Moderate

Instructions

1. Analyze your personality type. Not everyone has the personality to start a debt collection agency. Among other personality traits, a home-based debt collector must be persistent, patient, empathetic, organized and have a knack for invitation. Realize that many of the people who default on their outstanding loans do so as a result of situations beyond their control. Being empathetic can help you in collecting some of the outstanding debt. On the other hand, investigative qualities come in handy tracking down those folks who try to buck the system and get away with a scam.

2. Home Office

   Obtain the necessary office equipment. As with most home businesses, a computer is a staple. In addition to a computer, a home-based debt collection agency should have a dedicated telephone line (it's much more professional than having 5 year old Joey answer the phone), a fax machine, and copy machine. The fax and copy machines may not be necessary at start up but may prove to be helpful as the agency grows.

3. Create a website. This pretty much goes without saying. In today's Internet age, a business without a website is almost unheard of. It doesn't have to be anything fancy. All you'll need is a site that has the contact information for your debt collection agency and a catchy slogan to entice the reader to request more information.

4. Past Due Bill

   Investigate debt collections software. While the software is not something that should be purchased at the initial startup, once the business gets up and running you might want to look into software to help your business run more efficiently. Sentinel and Collector! are two debt collection software packages to look into.

5. Gain the necessary education. In addition to becoming familiar with the Fair Debt Collection Practices Act, folks looking to start their own home-based debt collection agency should contact their Department of State to find out if there are any additional licensing requirements.

Tips & Warnings

• Before purchasing software, make sure to review the debt collection programs thoroughly. Buying software is more than the investment of purchasing the actual program; there is the learning curve involved. You don't want to spend a lot of time learning debt collection software only to find out that it doesn't adequately serve your purposes.

Resources

• Fair Debt Collection Practices Act
• Starting a Collection Agency, How to make money collecting money
• How to Set Up a Debt Collection Agency in Texas
• How to Chip Away at Outstanding Debt
• How to Survive Having More Month than Money