Starting a debt collection business requires a great deal of effort, dedication, and most importantly passion.
If you're interested in how to sell debt collection, or selling debt collection online, you can use this page as a guide for everything you'll need to know.
|Min Startup Costs||Max Startup Costs|
|Employee & Freelancer Expenses||$151||$252|
|Business Formation Fees||$600||$4,700|
|Retail Business Expenses||$1,250||$6,650|
|Advertising & Marketing Costs||$75||$3,986|
|Office Space Expenses||$0||$100|
|Specific Industry Expenses||$0||$500|
|Total Startup Costs||$2,461||$35,923|
|Collection Attorney USA||collectionattorneyusa.com||#1,003,282|
|Account Control Technology Debt Recovery and Accounts Receivable Management||accountcontrol.com||#2,376,765|
|Business Debt Australia||businessdebtaus.com.au||#2,743,694|
|Agency of Credit Control||getitpaid.com||#3,210,351|
|AZ Consumer Law Group||skibalaw.com||#3,579,821|
|Debt collection in Egypt||tcmegypt.com||#4,080,997|
|Commercial collections firm||prelitigation.com||#4,246,584|
|RentDebt Automated Collections||rentdebt.com||#4,624,624|
Pros & Cons
|Little startup costs required||The cost to start a debt collection business costs significantly less money than most businesses, ranging anywhere from 3,141 to 35,923.|
|Rewarding work||Starting a debt collection 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.|
|High customer retention rates||Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.|
|Pick & choose the clients you work with||Debt Collection Businesses have the ability to choose the clients they work with. You have the freedom to work with only a few loyal clients or with hundreds of clients!|
|Control of workload||With starting a debt collection business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.|
|Gain exposure and experience||This career allows you to gain experience working for multiple different businesses - which will benefit your resume and also keep things interesting for you!|
|Motivation of employees||If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.|
|Longer Sales Process||A debt collection 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 debt collection 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 debt collection business, you are typically self-employed and responsible for finding your own insurance, which can be quite costly and time-consuming.|
|Taxes||As a debt collection 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.|
|No safety net||Typically, as a debt collection business, you do not receive a consistent pay-check and instead earn money based on your transactions each month. During the slow periods, you typically take away less since the job is based on commission. It's important to budget accordingly for the slow times.|
Hey! 👋 I'm Pat Walls, the founder of Starter Story.
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