Bad times can be good times for certain types of businesses, particularly the credit collection business. With interest rates rising, cost of money becomes more expensive squeezing many businesses. As a result, they are unable to pay on their debt obligations or get delayed in their payments to their creditors, vendors and suppliers. It is one big ouch for the company waiting to be paid, but bonanza for credit collection businesses.
So how can you start a credit collection business?
The first thing is to have an understanding of the laws of credit and collection. Lawdog.com http://www.lawdog.com/state/laws.htm offers law information for collections in all fifty states.
Other resources include:
Michelle Dunn website
http://www.collectionindustry.com/home.cfm (subscription-based website for the collections industry professional)
http://www.firstdetroit.com/ (offers research and analysis on the debt collection industry)
Below are books for starting a collection agency:
- Starting a Collection Agency by Michelle Dunn
- How to Start a Home-Based Collection Agency by Robert H. Bills
- Credit & Collection Letters That Get Results by Harold E. Meyer
- An Attorney’s Guide to the Collection of Bad Debts by Robert L. Lewis
Another good resource is the Association of Credit and Collection Professionals http://www.acainternational.org/