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 SWOT Analysis Chapter
The industry is in the growth stage of its life cycle. Industry value added is projected to grow at a compound annual rate of 4.5% over the 10 years through 2021-22. This compares with compound annual GDP growth of 2.3% over the same period.
Debt collectors' revenue declined during the late 2000s, but this performance has to be taken in the context of the global financial crisis and the severe recession that followed. While the unprecedented accumulation of debt would suggest strong demand and revenue for debt collection agencies over this period, substantial debt write-offs caused a sharp decline in the debt recovery rate, slashing revenue and profit for the industry.
There are still more markets for debt collection agencies to develop. Man.. purchase to read more