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 - Starting a New Business Chapter
The barriers to entry for debt collection agencies are medium but 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. Other moderate barriers include the capital investment required for adequate information technology infrastructure and data processing systems. These can provide economies of scale and process cost advantages but these benefits are not essential to industry participation.
The existence of a number of industry bodies that promote ethical collection practices, continuing educational requirements, industry accreditation and other safety and soundness measures raises the minimum standards of the Debt Collection industry... purchase to read more