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 Key Buyers Chapter
The Debt Collection industry has a low concentration level, with the four largest players estimated to account for over 35% of industry revenue in 2015-16. These largest firms are Credit Corp Group, Collection House, ACM Group and Dan & Bradstreet (Australia). The Australian Collectors and Debt Buyers Association (ACDBA) estimates that its 18 member organisations account for 70% of industry revenue, with the balance contributed by the many small-scale businesses that primarily recover loans from individuals and small businesses. High profit margins have encouraged more businesses to enter the industry over the past five years. In 2015-16, approximately 90% of industry firms will generate revenue of less than $2.0 million a year, with 95% of firms having less than 20 employees... purchase to read more