Just as soon as you can get your business licenses in place, you can start collecting debt. This is the first and biggest hurdle that you must overcome before you can move forward. Setting up your collection business can be as easy or as hard as you make it. If you are worried about business expenses, consider starting your business as a telecommuting or home based business until you can get the capital and licensing to branch out and expand. If you have private investors or need to obtain financial help, these extra steps often mean a delay in getting your debt collection business started. In our current economy, banks and other lenders are tentative to lend any money to those embarking in the debt collection industry due to the inherent risk involved with that industry. If you need to pursue 3rd party funding to start your collection business you can expect further delays in getting your business started.
One suggestion is to start smaller. All of us have big plans about what we would like and what our ultimate dream would be, but see if there aren’t place that you can cut and things that you can simplify to help you start a successful business. Find out what others in your area have done, what challenges they have encountered and what challenges you can expect to see. If there are no collection businesses in your area, check with other successful small business owners to see what you can do to minimize your risk, quickly obtain the proper licensing, and start on your own debt collecting adventure.