Wednesday, June 23rd, 2010
How do debt collection companies start up?
Touche asked:
I’m kind of young, but feel that I would be very successful in the debt collection business. I want to change how they treat people and I really want to be my OWN company. How can I go about setting one up? Where do I find the debt? Please help!
I’m kind of young, but feel that I would be very successful in the debt collection business. I want to change how they treat people and I really want to be my OWN company. How can I go about setting one up? Where do I find the debt? Please help!
June 24th, 2010 at 1:14 pm
Debt collection companies buy debt from other businesses. The reason businesses sell debt is because they need cash flow, and are quite willing to sell the debts at a discount (anywhere from 5% to 25% off the amounts owed). it is then up to the debt collector to get the payments.
Note; to buy these debts you need to have the money to pay for the debts you can collect, and good debt collection companies don’t work on commission based on what they collect – that way they’d finish up with all the really bad debts that will probably never be paid, and they’d go broke!