How to Form a Collection Agency
A collection agency is a potentially lucrative business that you can operate from home. If you have experience in debt management, credit repair, finances or sales, you might succeed as a self-employed debt collector. Debt collection is a tough business, but it provides a valuable (if under-appreciated) service to the economy. Here is how to get started.
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Instructions
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Five Steps to Forming a Collection Agency
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Take business writing and copywriting courses to develop the professional and persuasive letter-writing skills you will need to form a successful collection agency.
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2
Gather forms and templates for your collection agency. Many online business resources offer free templates, but don't hesitate to consult a lawyer to ensure you have the correct forms for your collection agency.
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3
Get a dedicated phone line, fax line and mailbox for your collection agency. Even though you can operate your collection agency from home, you want to separate business correspondence from personal communications. Be sure to get a mailbox that isn't just a post office box but represents a real street address.
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4
Write a business and marketing plan for your collection agency. To form a collection agency, you need to determine your commission rates schedule, or the percentage you will take as a collection fee. In your marketing plan, outline any strategic alliances you will create, how you will network your collection agency and how you will leverage your commissions into return business. Have a clear plan for getting steady clients, because it will increase the efficiency and the bottom line of your collection agency business.
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Start soliciting work collecting money from debtors, and collect the fees you are owed. If you work hard to get clients and do your best for them, you can build a successful collection agency.
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