Our social impact
Debt is a harsh but undeniable reality these days, and consumers who are drowning in debt tend to keep defaulting on payments and obliterating their credit situation. As a person with a background in finance and the credit and debt industry, you could be looking to open a debt settlement and credit repair business that helps clients like customers and companies get control of their finances and also get a better credit score. Here’s what you can do to set up your company and be successful.
The first step is to complete a course on credit and debt collection. These are provided by several reputed associations, local universities, and online institutions. It is a good idea to refresh your knowledge of the field and hone your skills through these programs even if you have former experience.
Get a Name
Your business name is your brand identity, so it must be one that speaks to your clients. It is a good idea to do some research online to see if the name you are considering hasn’t been taken by some other business debt settlement firm.
Get Incorporated and Registered
Since credit repair businesses deal with finances and credit, it is a good idea to separate your personal and business assets and liabilities for added protection, which you can do by incorporating the business. You can do this yourself or through an attorney or advisor. Also, talk to the licensing department for the county or city so that the business is registered with the local government.
Since most of these businesses work through over-the-phone correspondences, it is quite easy to start off from a home-based office. All you need to do is contact the local zoning department and arrange for any required home-business permits.
Get your Templates and Legal Documents in Order
It is a good idea to create some template letters that you can send to creditors and investigation agencies to get the debt settlement process started. Having templates allows you to get going quickly for subsequent cases rather than having to start from scratch every time.
Client Agreements and Legal Issues
Get your attorney to draw up client agreements which can be signed by clients when they hire you. This has to be airtight and must include all details of fees, services rendered, time frames and so on. Ensure that the client signs off on each of these.
Promote, Promote, Promote
The first thing you should do is to get a website or a blog running as this will be your marketing brochure online. You can advertise your business and also gather leads for clients. Have a contact option and a newsletter if you can so that you know who wants to get in touch with you. Blog regularly, write informative posts which the clients can relate to and are inspired by. The next logical step is getting out some billboards, phone book, and newspaper ads and so on. You can also hold workshops for awareness of debt and credit management as these go a long way in gathering goodwill and recognition.
Now that you’re good to go, all you have to do is serve your clients as diligently as you can and get them to review you well. Have them refer friends and acquaintances to you and also reach out to anyone you know who deals with large volumes of customers so that they can route them to you.
This project was last updated 5 months ago