Repaid in full: Industry revenue grows as debt collection outsourcing increases

The Debt Collection industry typically thrives when the economy is weak, as this can lead to households defaulting on loans and trigger a rise in business bankruptcies. Strong economic conditions can have the opposite effect on the industry. This is due to households and businesses making efforts to pay down debt and boost savings, while tighter lending practices can result in better loans with less likelihood of default.The Debt Collection industry has displayed solid growth over the past five years. This is largely due to a rise in unemployment, along with an increase in the household debt to assets ratio. These negative economic factors have contributed to more people and businesses being under financial pressure...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
4.6%
Forecast Growth 18-23
Profit
Employment
7,780
Businesses
557

Industry Threats & Opportunities

  • Government agencies have increasingly outsourced debt collection activities
  • Larger firms have established offshore collection centres to capitalise on cheaper labour costs
  • The Debt Collection industry's performance is expected to remain strong over the next five years
  • Industry Report - Industry SWOT Analysis Chapter

    The Debt Collection industry is in the growth stage of its economic life cycle. Industry value added, which measures an industry's contribution to the overall economy, is forecast to grow at an annualised 3.4% over the 10 years through 2022-23. This represents an outperformance of the overall economy, with real GDP expected to rise at an annualised 2.5% over the same period. This is indicative of a growing industry. Additionally, the rising acceptance of outsourcing debt collection services and an increasing number of industry establishments also characterises the industry's growth stage. Over the past five years, government agencies, particularly local councils, have increasingly outsourced debt collection activities relating to infringement notices and council rates. Thi...purchase to read more.

    Additional Insights for the Debt Collection Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Debt Collection Industry are

  • Having links with suppliers
  • Access to highly skilled workforce
  • Ability to effectively manage debtors
  • IBISWorld analysts also discuss how external factors such as National unemployment rate and Business bankruptcies in the Debt Collection industry impact industry performance..

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    What's in this report

    What is the Debt Collection Industry?

    Debt collection firms retrieve debt payments from individuals and businesses that have failed to meet 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. Alternatively, firms can purchase bad debt from the original creditors at a discount on its face value.

    Industry Products
  • Contingent fee services
  • Portfolio acquisition services
  • Other debt collection services
  • Industry Activities
  • Account collection services
  • Bill collection services
  • Collection agency operations
  • Debt collection services
  • Debt portfolio collection services
  • Debt purchasing
  • Other debt purchase and collection services
  • Repossession services
  • Tax collection on a contract or fee basis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • National unemployment rate
  • Business bankruptcies
  • Household debt to assets ratio
  • Ratio of credit card debt to discretionary income
  • Ratio of interest payments to disposable income

  • Current Performance
  • Type of debt owned
  • Industry drivers
  • Industry structure
  • Collecting change
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand drivers
  • Industry structure
  • New opportunities
  • Table: Debt Collection Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Debt Collection Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Electricity, Gas, Water and Waste Services
  • Building Societies
  • Credit Unions
  • Public Administration and Safety
  • Telecommunications Services
  • National and Regional Commercial Banks
  • Foreign Banks

  • Key Selling Industries
  • Computer and Electronic Office Equipment Manufacturing
  • Credit Agencies

  • Products & Services
  • Portfolio acquisition services
  • Contingent fee services
  • Other debt collection services
  • Chart: Debt Collection Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial sector
  • Government
  • Commercial firms
  • Other sectors
  • Utility companies
  • Chart: Major Market Segmentation for the Debt Collection Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Debt Collection

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Debt Collection Industry

  • Industry Globalization
    Credit Corp Group Limited, Collection House Limited,
  • Table: Credit Corp Group Limited - financial performance
  • Table: Collection House Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Debt Collection Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Debt Collection Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Contingent Collection
  • Firms that collect debt on behalf of the original creditor.
  • Ledger
  • An account book with columns for credits and debits.
  • Mercantile Agents
  • Debt collection agents also refer to themselves as mercantile agents.
  • Pdl
  • Purchased debt ledger, which is the purchased debt of another company that the debt collection firm seeks to recoup.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Debt Collection market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Debt Collection:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Debt Collection market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Debt Collection, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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