GOOD advice. I'm a consultant as well and do agree that a new agency may not want to venture into purchased debt unless they truly have investment $$ that they can fully risk. ...and, yes, the risks are numerous and varied.
Hi William. I would suggest getting clients and collect on a contingency basis. As your company gains experience you may see what type of debt you would like to buy. Debt portfolios are selling high when we are talking fresh or one agency. As your firm gets a better idea of the collection process and their strength you may reach out to service debt buyers and maybe partner with them on a purchase or use reliable contacts you would have made during your contingency work. If you do buy debt give me a call before you do and I will answer any questions you may have.
Thanks and good luck.
Portfolio Management Group www.pmg-solution.com
Author of "Debt Purchasing, An Investors Guide to Buying Debt" and a contributor to the ACA International "Buying Receivables Manual"