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 Analysis Chapter
Australia has virtually operated as a two-speed economy since the onset of the global financial crisis and this has played into the hands of the Debt Collection industry. This 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, notably Dun & Bradstreet, also had collection activities on the eastern seaboard interrupted by the floods and cyclones of 2010-11... purchase to read more