MESSAGE FORUM

Members Login

Post Info

TOPIC: STARTING A COLLECTION AGENCY

WNC MODERATOR

Moderator

Status: Offline

Posts: 32

Date: Nov 2, 2007

STARTING A COLLECTION AGENCY	Permalink

To start your own collection agency or service, you must first have a good understanding of collection procedures and the laws that govern your state, county, and city. You will need to know what you can and cannot do legally. Obtain the knowledge from sources such as: Federal fair Debt Collection Practices Act Your State Laws Health Insurance Policies and Billing Procedures One place to obtain collection experience is to take a course in collections either from your local college or from a reputable collection agency. Sierra Judgment Recovery (www.recoverycourse.com) offers free and low cost courses in starting a collection and recovery service. Currently they are members in good standing with the Better Business Bureau. You still have to do your own research to be sure this is right for you. As with any business opportunity, do your own investigation. If there is something you do not understand, always ask. Always check with the Better Business Bureau. Always check for scam reports. Always do a Google search. Clients Your clients will be businesses of all types and individuals. You will be collecting on bounced checks, overdue invoices, unpaid medical bills, past due child support, and individuals with court ordered settlements and the defendant still has not paid. Income potential On average you can charge clients a commission range from 15-50 percent of the amount collected. The bigger the debt the more your commission would be. How much money you make depends on how much you collect. That means putting in some work. Start-up Costs Starting your own home based collection services is fairly inexpensive. You can estimate start-up costs at about $3,500. These cost would include: Computer Printer Desktop Publishing Software Fax Telephone Professional Organization Dues Business License (check with your state for requirements) Of course if you already have some of these items, your start-up costs will be less. Organizations American Collectors Association www.acainternational.org National Child Support Enforcement Association http://www.ncsea.org/ National Business Association http://www.nationalbusiness.org/ -- Edited by WNC MODERATOR at 05:53, 2007-11-03 __________________ LaCresha Wilkins Business Support Specialist/Moderator Wilkins Network Consulting

Page 1 of 1 sorted by

Tweet this page

Post to Digg

Post to Del.icio.us

Create your own FREE Forum
Report Abuse