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 Locations Chapter
The geographic distribution of the industry is determined by the location of key customer markets, but this is also influenced by other factors such as the level of economic activity, number of businesses and population density. These have a tendency to increase the concentration of industry enterprises in regions.
The industry is mainly concentrated in the larger states of New South Wales, Victoria and Queensland, which together accounted for 83% of debt collection enterprises in June 2013 and this concentration has remained unchanged in recent years. Melbourne and Sydney are home to most of Australia's financial corporations (e.g. banks and insurance companies) and these are the principal clients for debt collection services... purchase to read more