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Sunday, June 2, 2019

3 Ways Technology Can Help You Start a Debt Collections Business

In today’s world, the word “startup” is bandied about so much that few people really understand exactly what a startup is and how long you are in the startup stage. Actually, there is no standardized definition of what constitutes a startup, but, according to one successful entrepreneur who founded Y Combinator, Paul Graham, a startup is simply “designed to grow fast.” With that in mind and the fact that a startup is usually thought of as meeting the needs of a huge customer base, not a local baker (for example), let’s look at debt collections because they are not strictly local in nature.
1. Meeting Legal Requirements in Your State

Although you may be reaching out to clients on a national level, you will need to be licensed as a debt collections agency in your state. That’s a given. But, do you know what you need to get that licensure? Each state has its own requirements and the industry itself has legal requirements, so why not turn to technology to get the help you need acquiring and keeping those certifications? You will find that technology serves you well with debt collection licensing - Cornerstone Support. Not only can you contract the services of companies like this but they have ongoing support to help you maintain active licensing.

2. Online Marketing for Exposure

Then there is the internet. What can be said about the benefits of using the internet for growing a client base? Marketing is an arena all to itself and if you want to be considered a ‘startup,’ then you must realize that you are seeking a large client base. Utilize a digital marketing group that will use several online marketing platforms to reach an unlimited audience of companies seeking help collecting a debt. There really is no faster way to gain maximum exposure.

3. Chat Bots for Quick Response Times and Live Support

Once your doors are open to business, proverbially if not literally, it’s time to keep those clients and debtors happy. That term is used loosely here because what debtor is ever actually happy about owing a sum of money with collections on their heels? Even so, once you’ve made that initial contact, those defaulters may have questions which you can answer quickly with a chatbot popup on your website. This is one of the most remarkable advantages of technology in collections because some people are simply too embarrassed to speak with a debt collector!

You might also want to add automation to the list of technology useful in growing a startup. Automate such things as communications so that your staff is free to do other tasks that really do require their attention. Just remember that while you have technology at your disposal to help you with the day to day tasks of running a debt collections agency, there will always be a human factor that is of utmost importance. Technology is critical to rapid growth, but never forget that you are dealing with people, many of whom are in dire financial straits. Keep a healthy balance and your new company will be off to a great start.

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