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!

Share
This entry was posted in collection agencies, Education, Fair Debt Collection Practices Act, FAQ's, Licensing, linkedin, Networking, Professional Associations, Software, Starting a Collection Agency, The Life of a Bill Collector, Working at a Collection Agency, Working from Home and tagged , , , , , , . Bookmark the permalink.

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?

Leave a Reply