Overview

Credit is due: Increasing unemployment and debt collection outsourcing have driven growth

IBISWorld’s Debt Collection market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • Rising unemployment has boosted demand for debt collection services
  • Lower interest rates have partly offset higher debt prices over the past five years
  • Greater use of technology and continued purchases of debt ledgers should support industry growth

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    Industry Analysis & Industry Trends

    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. Industry revenue is projected to display strong growth of 4.8% during 2016-17, due to expectations of higher unemployment, more bankruptcies and increased household debt as a proportion of assets.

    Larger companies in the industry benefit from economies of scale and branding...

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    Industry Report - Industry Products Chapter

    The industry includes two main types of debt collection: contingent fee servicing and portfolio acquisition servicing. The main difference between these two is the debt holder. Contingent collection agencies collect debt on behalf of the original creditor for a fee, while debt buyers gain the rights to any money collected on a portfolio or purchased debt ledger.

    Portfolio acquisition services

    Portfolio purchasing has become a popular alternative to contingent fee servicing over the past decade, and this segment is now the largest in the industry. Most purchased portfolios originate from the banking sector and retail markets. The segment is estimated to account for 62.7% o..

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    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

  • Relationship management
  • Skilled and experienced workforce
  • A high rate of successful debt collection
  • 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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    Industry Products

    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

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    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
  • Counter-cyclical growth
  • Profit and employment surges
  • Collecting change
  • Chart: Revenue Growth

  • Industry Outlook
  • Steady revenue growth
  • Demand drivers
  • Credit reporting and extensions
  • New markets
  • Table: Debt Collection Industry Revenue Outlook

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

  • Products & Markets
    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
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Debt Collection

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

  • Industry Globalization
    Major Companies
    Credit Corp Group LimitedCollection House Limited
  • Table: Credit Corp Group Limited - financial performance
  • Table: Collection House Limited - financial performance

  • Operating Conditions
    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
    Key Statistics
    Table: Industry Data for the Debt Collection Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Jargon & Glossary
    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.
  • Why buy this report?

    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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