Debt Collection Business

2 Debt Collection Business Success Stories [2024]

Pat Walls

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Updated: October 8th, 2024

Tired of seeing unpaid debts pile up for businesses? Consider starting a debt collection business. In simple terms, this involves contacting consumers on behalf of businesses to recover overdue payments.

This business model provides essential support to companies struggling with cash flow due to unpaid invoices. As a debt collector, you’ll use a mix of communication skills, negotiation tactics, and legal knowledge to retrieve the owed money.

While the job isn’t glamorous, it’s incredibly vital. The demand for debt collection services remains steady, making this a recession-proof venture. Plus, effective debt collection ensures healthier financials for your clients, fostering long-term business relationships.

If you have a knack for problem-solving and can handle difficult conversations pragmatically, this could be the ideal business for you. The rewards come not just in the form of financial gains but also from helping to maintain the economic health of businesses.

In this list, you'll find real-world debt collection business success stories and very profitable examples of starting a debt collection business that makes money.

1. Fair Capital ($960K/year)

Avi Grunwald, founder and CEO of Fair Capital, started the company in 2017 to address the significant problem of unpaid invoices that many businesses face. Through his research, Avi realized that the debt collection industry had a bad reputation and many businesses were hesitant to hire a collection agency. Determined to make debt collection efficient and positive, Avi assembled a unique team of industry professionals and newcomers to create a culture of mediation between creditors and debtors. With their proven debt collection strategy, Fair Capital has achieved a success rate 52% higher than the industry average, as reported by ACA International.

How much money it makes: $960K/year
How many people on the team: 0

How An Industry Outsider Started An $80K/Month Debt Collection Business

A debt collection agency's founder and CEO speaks on addressing the debts of businesses efficiently and positively, attributing its 52% collection success rate increase to a three-phase collection process.

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2. Arrest Your Debt ($42K/year)

Ryan Luke, a police lieutenant, came up with the idea for his online education business Arrest Your Debt after experiencing financial hardship himself. After struggling to make mortgage payments and accumulating debt, he decided to learn about personal finance and became passionate about helping others in similar situations. Through blogging and coaching, he has been able to help first responders become financially free, earning around $3,500 a month from his business.

How much money it makes: $42K/year
How much did it cost to start: $500
How many people on the team: 1

How This Police Lieutenant Started A $3.5K/Month Side Business Blogging About Financial Education

Police lieutenant Ryan Luke grew his side business, Arrest Your Debt, into a $3,500 monthly income stream by blogging about personal finance tips through a focus on financial literacy for first responders.

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Read by 6,736 founders