Many people wonder how to start a debt collection agency or an agency for debt recovery in UAE. In reality, it is not that difficult. There are only a few simple steps that need to be followed in order for one to start their own debt recovery agency. All of this can be found in the resource box below. Read on and get the inside scoop on how to start a debt collection agency!
Find a niche – You need to find a specialized area of debt in which you will excel. In this case, you will have to focus on debt under AED10k. In this case, you will have more leeway on how to proceed since this is the lowest number in terms of debt. Also, you have less competition and lesser risks. If you find yourself with such a small target, you can rest assured that you will have great success.
Get a license – The next step is to get a license to operate your legal recovery and collection agency. There are several ways to do so. The easiest one would be to get a co-signer who will act as your guarantor for loans that you will collect from your customers. In this way, your operation will not be under the watch of the government since the license you obtained will cover any legal issues that might arise as a result of your activity.
Deal with the debt – Once you get the license to operate, you will need to deal with your customers directly. This should happen without involving any outside agency. Start by sending out regular notices about overdue payments, and make it clear that these will not be ignored. Then you will try to contact the person in question to come up with an agreement. If this fails, you may have to pursue legal actions against the debtor.
You will have to keep in mind that this is not a short-term activity. As soon as you are able to manage your collection business, you will find that your profits will go up.