Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is weak, as this can lead to households defaulting on loans and trigger a rise in business bankruptcies. Strong economic conditions can have the opposite effect on the industry. This is due to households and businesses making efforts to pay down debt and boost savings, while the tightening of lending practices can result in better loans with less likelihood of default. Industry revenue is projected to display strong growth of 4.6% during 2015-16, due to more bankruptcies and increased household debt as a proportion of assets. This growth is despite a decline in the unemployment rate.
Over the past five years, high household debt levels (due to rising housing costs) fuelled steady growth for debt collection agencies... purchase to read more
Industry Report - Starting a New Business Chapter
Entry barriers to the industry are at a medium level, and rising. Of these, the relationship with creditors or loan originators and access to an adequately skilled workforce are the more challenging hurdles to industry participation. Further, knowledge of the regulatory environment by experienced staff can raise entry barriers to the industry. Other moderate barriers include the capital investment required to purchase debt ledgers, and for adequate information technology infrastructure and data processing systems. Although larger volumes can provide economies of scale and processing cost advantages, these benefits are not essential to industry participation... purchase to read more