How to start your own Repossession Company
If people default their automobile loan or if they fail to return a rented car on time, a company is going to have someone who is going to retrieve the automobile. You could provide this need and at the same time earn a substantial business income through starting your own repossession company. However, it is important to keep in mind that establishing this business needs hard work and planning. It always depends on the place where you live as you might need experience and training and a repossession license so you can finally get started.
Gain an experience being a repossession agent. There are states that require a person who wants a license in running a repossession business to have at least one or two years of experience. In order for you to obtain this, you can work in an established repossession business.
Check for the laws which govern the repossession in the state where you live. There are states that require a special licensing for a repossession company. It also depends on the state in question. You might need to comply for a state-approved training program, licensure exam, and an application to get a license. You will usually need to pay for a licensing fee too. You might learn the repossession laws around your area. In order to obtain this, you can contact agencies like Department of Insurance or the Department of Transportation.
Get a business license through applying with a county clerk, department of license and inspection, or the same offices around your city. The license will give you a right in running a business in your jurisdiction.
Purchase or lease a commercial space for your repossession company and prepare your new business. You will be needing a business telephone line, computers, filing cabinets, chairs, and desks. In addition, you will need a safe area where you can park the repossesses vehicles for a while.
Seek bonding and insurance. You will need a liability insurance in covering injuries and property damage which is caused by your company and bonding as well that will serve as a guarantee which will give you a competent services for repossession.
Buy a repossession equipment. For your repossession company, you will need one tow truck. You will be able to run your company with a hook and chain tow truck. But flat beds and wheel-lift tow trucks are a lot better for avoiding a damage on the vehicles and repossessing huge vehicles.
Choose employees cautiously. Every state has a law which governs safety and conduct during a repossession. You are going to need employees who remain calm and are capable of controlling difficult situations.
Market your repossession company. Send a direct mail advertisements to auto rental agencies, car dealers, auto loan companies, and banks. Arrange to meet with managers and owners in person. You can also use a cold calling technique. Additionally, you need to take advantage of the networking opportunities so you can spread a word about your company.