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... purchase to read more
Industry Report - Industry Analysis Chapter
Increased unemployment across the economy and high household debt levels have contributed to positive results for the Debt Collection industry over the five years through 2016-17. Debt collection operators generally benefit from difficult economic conditions and accompanying rises in unemployment, loan defaults and bankruptcies. However, slow or declining economic growth across some industry sectors, such as construction and mining, tended to tighten corporate budgets for debt recovery, limiting industry growth.
Type of debt owned
Industry operators use two main business models: contingent collections and debt portfolio collections. Contingent collection agencies collect debt on behalf of the original creditor... purchase to read more