Debt Collection Agency Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Debt Collection Agency Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Debt Collection Agency business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below)
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Debt collection agencies are very profitable businesses. This is due to the fact that they’re able to prosper during times of economic duress as well as strong economic climates. At all times, they’re going to be people that have not properly paid their debts and these debts are going to be sold to third parties are going to collect them either for their own account or on behalf of a client. One of the common issues with debt collection agencies as they are subject to a myriad of both state and federal laws that regulate how these businesses can collect unpaid debts from borrowers. This is going be one of the ongoing issues that these companies face moving forward given that regulations are constantly changing. In certain times, regulations are changed to benefit the consumer while in some states regulations are changed to benefit the debt collector. The barriers to entry for new debt collection business are very low. Some states do not regulate the collection of debts at all, while other states have substantial requirements as to how these businesses can conduct their operations.
Within the debt collection agency business plan, it should be noted whether or not the company is going to be operating as its own account or by collecting debts on behalf of third parties. Many of these businesses often operate in a dual capacity where they purchase discounted debts with the intention to collect them for profit while concurrently working with clients and have large amounts or receivables that have gone unpaid. Generally, most profitable of these clicks agencies operate by collecting debts for their own account. The startup costs associated with these types of businesses usually ranges from $5000-$100,000 depending on whether or not portfolios of bad debts are going to be purchased for pennies on the dollar. The overhead costs associated with these businesses is relatively low given that many employees that are tasked with collecting unpaid receivables usually operate on a commission basis. The offices and underlying general administrative costs are also considered very well.
As it relates to a marketing plan for the collection agency, this is not imperative given that these companies generally operates her own account and do not necessarily have clients. If a company intends to have clients to collect debts on their past, usually the only marketing requires to develop ongoing relationships with banks and financial institutions that are local to the market. Many debt collection agencies also receive referrals from repossession companies.
One of the strengths of this business is that, again, they are able to operate on an ongoing basis in any economic climate. As discussed before, one of the weaknesses associated with this business is that they have tremendous regulatory issues that they need to deal with an ongoing basis. It is imperative that a debt collection agency has the proper legal team on staff in order to ensure that they are in compliance with the law all times. As it relates to expansion and opportunities, collection agencies will often continue to purchase unpaid debts for pennies on the dollar. This can be a very lucrative lucrative practice if proper procedures are followed in order to collect these debts. Threats relate primarily to ongoing changes in legislation that regulate how these companies conduct business.
In closing, a debt collection agency can be a simple business that a person to talk to home all focusing on spent expanding into a large-scale business. This trend is expected to continue as the industry has undergone some standardization in terms of how debts are purchased and sold. Of course, this is can be one of those industries that is never going to go away given that there are always going to be people that are not going to pay their bills on time and they will actually going to collections. Additionally, with the high cost of medical care the demand for debt collection agencies I can properly obtain paid receivables from customers is substantial.