Friday, January 28, 2011
Consider Debt Collection for A Home Based Business
Work at home jobs are gaining popularity all over the world. Outsourcing has become a way of life for many businesses. If you have ever wanted to try a work at home business opportunity now is the time. With our economic climate in America not looking promising for companies to hire new employees anytime soon, now may be a great point in time to look at starting your own business.
There are many home business ideas. One that you may have not considered is a Debt Collection Business. Consumer debt is growing and this is a type of business that is also growing with a profitable outlook.
The business is fairly simple-you assist a business in collecting delinquent accounts through mail and phone calls. A great attraction to this type of home business is low overhead and costs. You can start a debt collection business with things you probably already own and can find located in your basic home office.
1. Telephone-usually a cell phone
2. Personal computer
3. Fax machine
If you don’t have these basics, you can get them fairly reasonable. If you shop for the best bargains on these you can usually start up for less than $1300.00. You don’t have re-occurring cost with the exception of paper, postage and your monthly telephone bill. Your internet connection and fax machine number are something you can use for other than the debt collection business and most people already have this. The telephone bill isn’t as bad as it seems. There are prepaid plans that offer unlimited calls, texts, and internet access for $40.00 monthly. If you choose the prepaid plan and you start the business and find it’s not for you, you’re not stuck with a 1 or 2 year contract for a cell phone you no longer use.
You shouldn’t start a debt collection business without receiving or having debt collection experience or training. If you have no experience contact some debt collection agencies or workers to find out if this industry is for you. You need to have patience, be able to take abuse from some customers, and have empathy for customers.
Your income for this type of business can fluctuate depending on the contract you have with the business or businesses you’re collecting for. The usual is 20% to 30% of what you recover from the debtors. Debt is categorized and if you choose to pursue older debts sometimes you can get 50%-65% of whatever debt you collect for the business. You get a bigger percentage because the chances of collecting the older debts are less. The chances of collecting the new debts have a lower commission because they are more likely to be collected.
Make a website for advertising your business. The site should be professional just as any other business. You can list in the yellow pages if you can afford it also. In some areas of the country there are local networking groups that may offer assistance with creating a base of customers. Take advantage of these if you’re able to.
A debt collection home based business is just like any other home based business. It needs dedication and hard work. Your hours may be unusual since you’re making phone calls to customers sometimes, before work, after work and during their work hours. With debt mounting for many people, now may be the time to make the most of this type of business. The potential income for the initial year may be high five to six figures, depending upon your tenacity and what you’re able to collect.