Top 5 Tips for Starting a Collection Agency

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!

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One Response to Top 5 Tips for Starting a Collection Agency

  1. Channel says:

    I would like to start my own collection agency, starting at home. I have alot of experience as a Collector but not able to know where to begin with very little capitol. And is it possible to start with very little funds?

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