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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Business Plan Writer
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017


Credit Repair Service SWOT Analysis

 

Strengths

 

Credit is essential for people in all economies. Without it, people would not be able to buy homes, finance cars, or start new businesses. Great credit is one of the best assets that a person can maintain. This is especially true in today's economy where credit decisions are primarily completed by a computer rather than a human making the decision. As such, people with credit issues are always seeking counselors that can assist them with repairing problems with their personal credit scores. Generally, the barriers to entry for a new credit repair service are very low. Many online providers of these services work from home, but these are much smaller operations. The costs of operating these businesses is very low. A startup credit repair service can be launched for as little as $10,000 (including the initial marketing budget and working capital). One of the primary strengths of this business is that they can generate highly recurring streams of revenue via credit monitoring services. This can substantially boost the valuation of this type of business.

 

Weaknesses

 

There are substantial number of regulatory issues that must be dealt with on an ongoing basis in order to make sure that a credit repair service operates within the letter of the law. Also, while operating costs are generally low - the amount of money that needs to be allocated towards marketing is extremely high. There are tens of thousands of independent credit counselors that are competing for the same business. As such, these are some of the weaknesses of the business that need to be taken into account before a new credit repair service is started.

 

Opportunities

 

There are substantial opportunities for a new credit repair service to launch operations. Foremost, many businesses integrate ongoing credit monitoring services into their service architecture in order to make sure that they can continue to generate revenues on an ongoing basis once a client's credit is repaired. There is always the opportunity to acquire existing credit repair services that have a substantial operating history and profits.

 

Threats

 

Given the fact that financial technology has become a way of life for most people, the regulations regarding how credit repair is provided is always an issue for these businesses. It is imperative that these companies maintain stringent procedures and protocols in order to make sure that they are operating within the prescribed regulations of both federal and state financial services agencies.


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