How to open a collection agency

A collection agency is a form of business whose purpose is to collect debt from individuals and legal entities. As a rule, such agencies are created directly with credit organizations, but there are also independent firms that buy out debts from banks at their own expense.

You will need

• - registration documents;

• - payment account;

• - office;

• - office equipment;

• - staff;

• - customers.

Instruction manual

1

To open a collection agency, you must first register a legal entity. It is desirable that this was a limited liability company or a closed joint-stock company.

2

Next, you need to find an office. The premises can be rented or purchased. The size of the office will depend only on the number of employees who will be accommodated there.

3

Make repairs in the room, arrange office furniture, equip office equipment. Each collector will need a personal computer with Internet access, landline and mobile phones.

4

The collection agency needs a bank account. It is also useful so that the founders of the LLC could contribute to it the amount of the authorized capital.

5

For the successful work of a collection agency, it is necessary to hire experienced specialists. In addition to collectors, you will need a lawyer, accountant, human resources inspector.

6

Further, there are two options for work: you can buy debt from credit organizations, that is, conclude a contract for the transfer of debt, or work with them for a certain percentage (usually from 15 to 35%), that is, conclude a service agreement.

7

The activities of your employees should be within the scope of the law, so they should clearly spell out job descriptions and rules for working with debtors. As a rule, collectors make phone calls, make home visits to debtors for a personal conversation, but if the persuasion does not help, then they transfer the case to court. If, even after the presentation of the court order, the case does not advance, then together with the court bailiffs the collectors make an inventory of the property.

Useful advice

At first, it is difficult for a collection agency to find customers who are ready to conclude an agreement with it. It is advisable that at least at first the company has a specialist who will negotiate with credit organizations.