Industry Analysis & Industry Trends
Debt Collection Agencies collect debts on behalf of clients, such as credit card companies. Some operators purchase debt portfolios at less than their face value and then collect these debts themselves. The industry's performance is influenced by a number of factors, including the level of personal and business debt, demand for debt collectors' services and the recovery rate on these debts. These factors are all affected by the state of the economy.
Throughout the five-year period through 2016-17 the industry has strengthened as profit margins have grown and revenue increased in all but two years of the period... purchase to read more
Industry Report - Industry Analysis Chapter
Debt collection agencies provide two main services; traditional debt collection on behalf of a third party, such as a credit card company or other similar business, and debt portfolio acquisition, whereby a company purchases a ledger or portfolio of debts at a discount and collects on these debts, taking ownership of any funds that can be recovered. The traditional business model has lost share to debt portfolio acquisition in recent years, which is largely undertaken by larger companies that have financial backing from private equity funds, banks or credit markets.
In addition to writing off loans, businesses manage their cash flow and costs by outsourcing debt recovery to collection agencies. Com.. purchase to read more