What tools do I need to be successful in my debt collection business?

So why do we need to worry about the tools, can’t I just start calling people and collect on their debt? The answer to that question is yes … BUT you need to ask yourself how you will gauge the success of your business and how you will maintain compliance with all of the rules and regulations in the collection industry. Aside from the obvious tools you will need like business location, phone, employees, internet, and business licenses, there are several industry specific tools that will help you achieve success, maintain compliance, and stay profitable in your collection business.

  1. Debt Collection Software – this can’t be stressed enough. Make sure you select a software that fits your needs, is affordable, provides and “easy-to-use” interface, won’t hold your data hostage, and will work across all platforms you will be using (cell phone, iPad, Mac, PC, etc). Watch out for hidden fees and per user pricing. (We have a great suggestion on an affordable debt collection software you will LOVE if you can’t find one ☺)
  2. Skip Tracing Company – there are several skip tracing companies out there that will assist you in finding the debtors in your book of business so you can collect on debt. Their services can be invaluable when trying to find debtors
  3. Predictive Dialer – if you are setting a up a big “smile and dial” shop with volumes of accounts, a predictive dialer is essential. Predictive dialers can ensure compliance by filtering out cell numbers, leaving messages, and prioritizing calling queues. They can be an invaluable tool for saving time.
  4. Merchant Account – most debtors will have the ability to pay by credit card or ACH. A merchant account will provide you the ability to accept these forms of payment easily especially if your collection software provides an easy-to-use debtor payment portal for online payment submission.
  5. Communication Tools – this is essential if you want to contact your accounts. Make sure that whatever software or tools you obtain, give you the ability to contact the debtors using multiple methods. Phone calls, fax, letters, SMS, email, etc are all great means of contacting debtors. Make sure you select tools that will provide you the ease of contacting your accounts using any available information available to you.
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