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The requirements for starting a repossession business typically vary from place to place. Many jurisdictions, however, require people who wants to run repossession businesses to obtain special licensing before commencing operations. Insurance and bonding are usually required as well. Gaining some experience in the field before you open your own business may also help to boost your chances of success. Additionally, you will usually have to select a suitable location and obtain tow trucks for use in your business.
Before you start planning a repossession business, you may do well to research the laws in your jurisdiction. Each jurisdiction may have different laws for starting this business. Some may require you to obtain a special repossession license, while others may only require a general business license. If your jurisdiction does require you to seek special licensing to start a repossession business, you may have to gain experience and pass a test to secure it.
Regardless of whether or not special licensing is required, you may do well to gain experience with repossessions before you strike out on your own. You may do this by working for a repossession company for a period of time in order to learn the ins and outs of the business. If you don’t want to learn about the business via employment, however, you may ask a repossession agent to allow you to accompany him for a day or two.
Once you've gained some experience and secured any licenses that are required in your jurisdiction, you may then go on to obtain insurance. You will typically need liability insurance to run this type of business, and you may need to be bonded as well. An insurance agent may be able to help you determine the amount and types of coverage you will need to run a repossession business.
Purchasing equipment is also an important part of starting a repossession business. You may need at least a couple of tow trucks to get started. You may purchase a hook-and-chain tow truck, for example, but wheel-lift and flat-bed trucks are typically better for avoiding damage to cars. Additionally, a flat-bed truck may be required for towing certain types of vehicles.
As far as choosing a location from which to run your business is concerned, you will generally need an office. The size of the office you'll need may depend on whether or not you will eventually have several employees or just a few. You may also need a secured storage yard for storing vehicles temporarily.
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