One of the newer members of my Credit & Collections Association asked the group for tips or help with starting a new collection agency. John Fahrlender from Greenberg,Grant & Richards and a member of my association had some great tips and I wanted to share them with you.
1. Realize that it is hard to get started and requires lots of work
2. Stay as low tech as possible until you have a consistent revenue stream
3. Learn to cull non-producing clients annually
4. Make sure you pay your clients before you
5. Incorporate, loan start up capital to the corp and file a UCC in case you don’t succeed on your first endeavor
Thanks John! These are GREAT tips!