Business Idea

Start A Collection And Debt Portfolios Management Business

About

Starting a collection and debt portfolios management business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell collection and debt portfolios management, or selling collection and debt portfolios management online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$13.4B
starting costs
$15.8K
gross margin
90%
time to build
7 months

About

Starting a collection and debt portfolios management business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell collection and debt portfolios management, or selling collection and debt portfolios management online, you can use this page as a guide for everything you'll need to know.

Key stats

market size
$13.4B
starting costs
$15.8K

 

gross margin
90%
time to build
7 months

Startup Costs

Min Startup Costs Max Startup Costs
Office Space Expenses $0 $7,000
Employee & Freelancer Expenses $150 $250
Website Costs $223 $7,015
Business Formation Fees $600 $4,700
Software Expenses $162 $2,894
Advertising & Marketing Costs $0 $1,400
Total Startup Costs $1,135 $23,259

Successful Businesses

Business URL Rank
Portfolio Recovery Associates, LLC portfoliorecovery.com #314,054
CPS-Consumer Portfolio Services, Inc. consumerportfolio.com #512,311
insideARM insidearm.com #542,106
Hercules Capital htgc.com #721,693
Brown & Joseph, LLC brownandjoseph.com #794,342
Encore Capital Group encorecapital.com #826,611
Accounts Recovery.net accountsrecovery.net #858,959
Debt Recoveries Australia debtrecoveries.com.au #1,099,198
CAVPS cavalryportfolioservices.com #1,318,446
AOFM aofm.gov.au #2,210,032
DebtTrader debttrader.com #2,285,169

Pros & Cons

Pros Description
Flexibility You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.
Ability to start your business from home It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!
Little startup costs required The cost to start a collection and debt portfolios management business costs significantly less money than most businesses, ranging anywhere from 2,515 to 23,259.
Rewarding work Starting a collection and debt portfolios management business can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.
Scalable With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.
No overhead costs To get your collection and debt portfolios management business started, there are no costs associated with overhead, storage, packaging, etc. This will save you a lot of time and money!
Cons Description
Crowded Space Competition is high when it comes to your collection and debt portfolios management business, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.
Longer Sales Process A collection and debt portfolios management business can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.
Work can be inconsistent As a collection and debt portfolios management business, the amount of work assigned to you and schedule tends to be more inconsistent, which may make your income less stable. It's important to set boundaries and budget accordingly based on the amount of work you plan to have.
Lack of benefits With a collection and debt portfolios management business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.
Isolation Often times, as a collection and debt portfolios management business, you typically work alone and do not have much face-to-face interaction with other team members.
Taxes As a collection and debt portfolios management business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.