Industry Analysis & Industry Trends
The Debt Collection industry typically thrives when the economy is weak, 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. The four largest debt-collecting firms are estimated to account for less than 30.0% of industry revenue in 2014-15, as the industry contains many small-scale businesses... purchase to read more
Industry Report - Industry Analysis Chapter
Australia has operated as a two-speed economy since the onset of the global financial crisis, and this has benefited the Debt Collection industry. Debt collection is one of the few industries that generally benefits from the tightening of economic conditions and the accompanying rises in unemployment, loan defaults and bankruptcies. That said, it has not all been smooth sailing for the industry, as the slower economic growth tended to tighten corporate budgets for debt recovery. Some firms, such as Dun & Bradstreet, also had collection activities on the eastern seaboard interrupted by the floods and cyclones of 2010-11.
Type of debt owned
Industry operators use two main business models: contingent collections and debt portfolio collections... purchase to read more