Debt Collection in Australia: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Debt Collection Market Research Report | ANZSIC N7293a | Jun 2014

A bad debt follows you: Increased unemployment drives demand for industry services

IBISWorld’s Debt Collection market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

Report Snapshot
Market Share of Companies
Industry Statistics & Market Size
Annual Growth 09-14
Annual Growth 14-19
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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


Industry ProductsRelated ReportsTable of Contents

What is the Debt Collection Industry?

Debt collection firms retrieve debt payments from delinquent individuals and businesses that have fallen short of the terms and conditions outlined by their loan agreements. A firm can act as an agent on behalf of a creditor for which the firm receives a fee or percentage of the total amount collected. Alternately, firms purchase 'bad' debt from the original creditors at a discount to its face value.

Industry Products
Contingent fee servicingPortfolio acquisition servicing
Industry Activities
Account collectionBill collectionDebt collectionDelinquent account collectionTax collection on a contract or fee basisDebt portfolio collection

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