How to Start an Online Collection Agency

Collecting outstanding funds can be done by an online collection agency

Online collection agencies are able to make money by purchasing accounts that are past-due from companies, obtaining overdue funds from the clients, and then be paid a certain amount of the money collected. Keep in mind that if you plan to purchase past-due accounts from companies, you need to have a substantial sum of cash at your disposal. If you enjoy working via the Internet, know how to deal with clients who have a record of being late with their payments, and can learn how to use special debt collection industry computer software, you can start an online collection agency.

Instructions

1. Prepare your home office. Purchase a laptop or desktop computer, or use a model you already have for your office. Be sure to have a telephone that you use strictly for business and put an answering machine message on it so your clients can leave messages. Other essential items to have are an online fax service, printer, scanner, and a copier. Consider buying a single machine that prints, scans, and copies to save on costs.

2. Design a website for your agency. If you are going to be running an online collection agency, your clients must be able to find you on the Internet. Hire a computer professional who is an expert at website design if you do not know how to make a website. Include multiple ways for your clients to contact you, such as email, telephone and fax. Have a method by which to collect the e-mails of your customers, and list your hours of operation.

3. Obtain free software to make your business flow more smoothly. Go to a site like collectionsmax.com to get the free debt collection software. Click on the words "Download Collections MAX" to complete the download. Keep in mind that all software will take some time to learn.

4. Understand the Fair Debt Collection Practices Act (FDCPA). The FDCPA protects consumers from abuse by prohibiting collecting agencies from sending postcards, using abusive or harsh language, and various other practices that are clearly stated on the Federal Trade Commission (FTC) website. Know these laws well, so you conduct your business with integrity.

References

• Ftc.gov: FTC Office of the Secretary - Fair Credit Reporting Act Links
• Collectionsmax.com: Decca Software Company - Free Debt Collection Software