When owners default on their payments, or when rental cars aren't returned on time, a business is called in to repossess them.If you have a talent for organizing and aren't afraid of tense situations, learning how to start a repossession business could give you a way to open a lucrative company.The following steps will show you the legal and organizational measures you need to take to make your business a success.
Step 1: Determine which legal requirements are needed in order to start a business.
A good understanding of the laws that govern this type of business is required in order to avoid mistakes.It's a good idea to learn the trade while you're working as a repossession agent.It is a legal requirement to have experience in the industry before you can apply for a license to start a business.It's important to know as much as possible about repossessing before entering the business.You have to pass a state exam before you can apply for a license in some places.To find out which rules apply to you, contact your local transportation department.
Step 2: The costs of starting a business should be included in the business plan.
Step 3: If you want to raise capital, apply for a business loan or get funding from private investors.
You will need a sum to cover the first 6 months of operations.Start a Repossession Business Step 3 can be found at http://www.bsis.ca.gov/forms_pubs/repo_fact.shtml.
Step 4: To get a business license, register your business with your city.
Step 5: You can choose a location for your business.
You will need an office space and a parking lot or garage to store the vehicles.Make sure the parking lot or garage has a good security system that includes a live guard as well as an armed response team.
Step 6: Purchase liability and property insurance for your business.
If you're sued, liability insurance protects your business.Property insurance protects your equipment, as well as any stored vehicles, in the event your location is damaged or destroyed due to crime, fires, or natural disasters.
Step 7: Purchase at least one tow truck.
If your start up capital allows, it's a good idea to have at least 3 flat bed trucks with wheel-lifts.
Step 8: Hire employees who are capable, experienced, and have clean records.
Step 9: Mailing and email campaigns can be used to target lending and leasing companies, as well as ads in local publications.