The repossession business involves acquiring products for banks and lending institutions that have reclaimed the property after borrowers have failed to make timely payments on them. Michigan repossession professionals acquire assets from individuals in Michigan who have failed to settle loans, debts and other financial obligations. Repossession companies then negotiate with the bank or loan company to acquire and sell these products at a higher price.
1) Learn the details of the industry. Talk to people who have solid experience regarding the operations of this trade. Look for experts in vehicle repossession who know the cities and towns of Michigan very well and have a willingness to share trade secrets with you. Those who would not be your competitors are the best ones to ask.
2) Prepare a business plan for a start-up repossession services enterprise. The plan must provide information normally requested by investors and lending institutions located in the state of Michigan. Your business plan should include the following basic parts: executive summary, business description, industry analysis, market analysis, competitive analysis, operational plan, and financials. Create a projection of your business's revenues, expenses, and net profits over the next five years. Keep your calculations conservative. If you underestimate earnings, that can only good for business. However, if you overestimate earnings, that can be financially devastating.
3) Identify the competition in the area. Set your sights on the competitive market and prepare yourself to achieve a market leadership position through the implementation of a strategic marketing campaign and extensive networking.
Secure a business license, €Doing Business As€ Trade Name Certificate and the required collection agency license. You can obtain the latter from the Michigan Collection Practices Board Office. Applicants need to acquire a surety bond worth $10,000 from an insurance agent or any company referred by the Collection Board. At the time of this writing and according to RepoIndustry.com, €The initial cost of a new company application is $224.00 and the renewal fee is $125.00 a year. The fee for a new application for a collection manger license is $85.00 and the renewal fee is $50.00 a year.€
Acquire liability insurance coverage. This provides the protection of the business and intends to cover €products and completed operations, fire legal liability, medical payments, premises liability, employer's liability insurance, employee benefits liability and employment-related practices liability,€ according to Nationwide Insurance.
TIP
Incorporate your business to enhance dependability and earn the trust of clients. Protect yourself from creditors and business-related lawsuits by detaching your personal status from the business itself. A corporation remains better than sole proprietorship status.
1) Learn the details of the industry. Talk to people who have solid experience regarding the operations of this trade. Look for experts in vehicle repossession who know the cities and towns of Michigan very well and have a willingness to share trade secrets with you. Those who would not be your competitors are the best ones to ask.
2) Prepare a business plan for a start-up repossession services enterprise. The plan must provide information normally requested by investors and lending institutions located in the state of Michigan. Your business plan should include the following basic parts: executive summary, business description, industry analysis, market analysis, competitive analysis, operational plan, and financials. Create a projection of your business's revenues, expenses, and net profits over the next five years. Keep your calculations conservative. If you underestimate earnings, that can only good for business. However, if you overestimate earnings, that can be financially devastating.
3) Identify the competition in the area. Set your sights on the competitive market and prepare yourself to achieve a market leadership position through the implementation of a strategic marketing campaign and extensive networking.
Secure a business license, €Doing Business As€ Trade Name Certificate and the required collection agency license. You can obtain the latter from the Michigan Collection Practices Board Office. Applicants need to acquire a surety bond worth $10,000 from an insurance agent or any company referred by the Collection Board. At the time of this writing and according to RepoIndustry.com, €The initial cost of a new company application is $224.00 and the renewal fee is $125.00 a year. The fee for a new application for a collection manger license is $85.00 and the renewal fee is $50.00 a year.€
Acquire liability insurance coverage. This provides the protection of the business and intends to cover €products and completed operations, fire legal liability, medical payments, premises liability, employer's liability insurance, employee benefits liability and employment-related practices liability,€ according to Nationwide Insurance.
TIP
Incorporate your business to enhance dependability and earn the trust of clients. Protect yourself from creditors and business-related lawsuits by detaching your personal status from the business itself. A corporation remains better than sole proprietorship status.
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