Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is stumbling, as this leads to households defaulting on loans and a rise in business bankruptcies. However, the global financial crisis did not lead to a significant surge in debt collecting services. This reflects efforts by households and businesses to pay down debt and boost savings, and the tightening of lending practices, which resulted in better loans with less likelihood of defaulting.
While some of the Australian economy has benefited from the booming resources sector for much of the past five years, much of the economy struggled in challenging conditions. The subdued economic growth and rising private debt has fuelled strong growth for debt collection agencies. Industry revenue is currently estimated at $1.2... purchase to read more
Industry Report - Industry Key Buyers Chapter
The Debt Collection industry has a low degree of ownership concentration with the four largest players estimated to account for about 30% of industry revenue in 2013-14. These include Collection House, Credit Corp Group, D&B Hold Company and ACM Group.
Australian Collectors and Debt Buyers Association (ACDBA) estimates that its 16 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 are also encouraging more businesses to enter the market.
Over the next five years, high profit margins will continue to attract new businesses... purchase to read more