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  • See How They Make Money As Debt Collectors

    People will always owe money. Some people and organisations have large sums of money owed them.

    Because they are busy running their businesses, they cannot effectively collect the debts.

    Some companies even have debt collection department but since they are in the company, they  cannot  get  much  done.

    The  debt  collector  can  really  be  very effective because he works on debt collection all the time. Debt collection is his core business.

    Because they are busy running their businesses, they cannot effectively collect the debts. Some companies even have debt collection department but since they are in the company, they  cannot  get  much  done.

    The  debt  collector  can  really  be  very effective because he works on debt collection all the time. Debt collection is his core business.

    Like bank reconciliation, you are paid on commission of the debt collected. If you assist in collecting N1million, at 10% commission, your cut is N100,000 and it could be higher depending on negotiation.

    To do this, you have to be well read, as you may have to deal with accountants and lawyers on the other side. Knowledge of accountancy and law may not be out of place but good communication skill is necessary.

    You will need an office that is properly furnished in a good location.

    Of course,  you  must  dress  well  and  present  your  organisation  as  a professional one.

    If you are not a lawyer, you will need to collaborate with one.  I am not sure there is a controlling body yet but I am aware there is a place in Lagos where they train people for debt collection. It is a green field, which is bound to expand in the future.

    MARKETING. Personal selling, cute letterheads and business cards. Introduce your outfit on the letterhead and follow up.

    You must state those you have helped to recover debts. See Bank reconciliation.

    CAVEAT. You may be tempted to use rough necks to recover some debts as some would not pay unless threatened.

    Be careful though as rule of law is on. Besides, it appears the law is on the side of the debtors. See how banks are finding it difficult to recover their money even when they are secured with collaterals.

    But then, handled properly, you will make your money.

    Download free copy of Profitable Small & Medium Businesses in Emerging Economy

    Otunba

    Otunba Jide omiyale

    Otunba Jide omiyale

    Chief Editor at Naija Biz Ideas
    I am Otunba Jide Omiyale. I run this site with other professionals,including Accountants, Lawyers, Commercial Bankers and Investment Bankers
    Otunba Jide omiyale

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