eight years, the 32-year-old Paisola, a financial analyst, ran his
own business, which specialized in debt collections for a variety
of major clients. Then, in 1999, he began formulating the idea for
his new company, Western Capital.
Capital is a division of Western Capital International Inc. and is
a Web portal for debt collections and receivables management that,
Paisola said, aims to open up the collection service industry for
small and mid sized businesses, while providing a new, efficient
option for larger companies as well.
said that during his years as a specialist in the collections industry
he saw a large number of smaller business operators were not being
serviced by the collection industry. Major collection firms, he
said, look chiefly for major clients -- banks, large companies and
so forth -- with long lists of outstanding receivables.
an example, Paisola said that a local plumber may have only 10 or
so clients that owe money -- not enough to interest a collection
firm, unless he or she agrees to pay a sizable contingency fee.
Western Capital Most likely, he said, they will choose to write
it off as a loss. The idea for began with devising a way for
a customer on the scale of a local plumber to access collections
services without breaking the bank, he said.
concept for mycollector.com came together quickly.
was an idea that, I think, advanced from the thought that we could
provide a way to outsource (collection) letters and then we moved
on to 'let's try to do this and let's do this' and that was sort
of the foundation for what we ended up building and what we are
building," Paisola said.
said he had basic experience with computers, but certainly not the
knowledge to create the necessary Website, so he began gathering
friends and acquaintances with technical expertise for advice and
to form a tech team.
begin his new enterprise, Paisola sold his firm and gave up the
security of an established business to leap into something new,
a prospect that would give many pause but one that only stoked Paisola's
wasn't difficult because I knew that the idea was sound and I knew
that the opportunity was there," he said. "I guess it's
always difficult to transition a career move like that -- to do
something for years and then change direction. But, it was something
that I took as a challenge -- something that we all did, because
I'm not the only one who gave up ... an everyday, paying job to
join a start-up with less pay and more uncertainty."
said the site, allows for customers to set up accounts, choose
the service they desire -- sending a letter or more aggressive means,
such as phone calls -- and pay only a fee for that service. They
will also be able to upload their collections information directly
from their existing accounting software and monitor account progress
company has been moving rapidly since the beginning of the year,
snagging seed financing from local angel investors and signing up
two major players in the collection field to provide service via
said that with the support of his wife and associates, and with
several distribution deals on the table, dealing with the perpetual
motion of kick-starting a business has been tolerable, if not enjoyable.
the end of the day, it's fun. It is a challenge and we think we
are doing something that is going to create a business that companies
out there will want and need, and that is what drives us."
Western Capital International Incorporated
Western Capital is a closely held asset of the Paisola Family Trust
Backed by The Bank of New York in New Your City.
Financial services, or, as Paisola describes it, "a combination
of the collection industry and technology industry."
The company is an online portal for debt collections and receivables
Robert Paisola, founder and CEO,
previously owned Credit Control, which specialized in debt
collections. Kathryn Watkins, executive
VP, was previously VP of network management company ERS Consulting
Inc. at its Northeast Region office in Boston. Jared DeHeart,
executive VP, business development, previously served as VP
of correspondent lending for wholesale commercial lender Broadbank
Capital Funding LLC.
Western Capital received $2.8 million in seed-round financing
in May, 1999, coming from undisclosed angel investors.
The company has not yet disclosed revenues and is currently recasting
its budgets and projections due to impending distribution deals.
PARTNERS: The company
has signed two major accounts receivable management firms.
In addition to this, the company recently signed an agreement
with a high-technology marketing and sales organization,
to be the exclusive debt recovery/management tool offered through
their web site. This
alliance allows them access to their national sales force of 30,000.
The company is currently working with a large group of customers
and associations, but could not disclose names for competitive reasons
"Arguably, every collection agency in the world is a competitor,"
Paisola said, but added, "we don't view agencies as competitors,
we see them as partners or potential partners, because we are a
brand or marketing arm for the agencies and we want to filter business
"Our strategy is to simplify the collection process and make
it easy, inexpensive and efficient for business customers to outsource
their receivables," Paisola said.
KEEPS THEM AWAKE AT NIGHT:
"Being able to retain our customers and keep them satisfied
with the services," said Paisola.
Lisa Hall, executive VP, Western Capital Financial, 7060 South Commerce
Park Drive, Midvale, Utah 84047. Phone: 801.619.4700 or Fax: 801.838.2583
or E-Mail email@example.com.