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 - Industry Locations Chapter
The geographic distribution of industry firms is determined by the location of key customer markets, the level of economic activity across states and territories, the number of businesses across regions, and population density. These factors have a tendency to increase the concentration of industry enterprises within particular regions. The industry is mainly concentrated in the larger states of New South Wales, Victoria and Queensland, which together are estimated to account for 82.7% of debt collection establishments in 2015-16, and 81.6% of industry revenue. This concentration has remained largely unchanged in the past five years... purchase to read more