$1.2bn
$XX.Xm
6,168
673
$XXX.Xm
The Debt Collection industry's performance tends to improve when economic conditions are weak, as these factors can elevate business bankruptcies and cause more households to default on loans. On the other hand, a strong economy and tight lending practices can dampen debt collection agencies' performance. Households and businesses pay down debts when the economy is performing well, while tighter lending practices leads to better loans that are less likely to default.While economic conditions weakened in the COVID-19 outbreak's aftermath, the government provided businesses with assistance via stimulus measures to ensure that they could remain in operation. This factor dampened business bankruptcies during the pandemic, dulling demand for debt collection services. Long-term drops in business bankruptcies, the household debt to assets ratio and the ratio of credit card debt to discretionary income have cut into industry profit margins. Despite these trends, debt collection agencies are starting to recover. Inflationary pressures have been ramping up, and the RBA has been raising the cash rate consistently to combat this climb. Resulting rises in interest rates and the cost of borrowing have made it more likely for households and businesses to accumulate bad debt. Revenue is expected to fall at an annualised 7.1% to an estimated $1.2 billion over the five years through 2023-24. However, this trend includes an expected rise of 9.4% in 2023-24, as recovering demand for debt collection services has sparked improved performance.Debt collection agencies' performance is set to keep recovering over the next few years. Climbing interest rates will lift the ratio of interest payments to disposable income, making it more likely that downstream markets will seek out debt collection services. Agencies are also likely to improve their profit margins; many debt collectors are implementing process automation via web portals, which can improve productivity and automate communications functions like sending emails and messages. Growth opportunities are also on track to arise for debt collectors, as more companies will be outsourcing receivables management to specialists in the industry – particularly companies in the finance, insurance, banking and telecommunications sectors. Overall, revenue is forecast to climb at an annualised 1.1% to an estimated $1.3 billion over the five years through 2028-29, reflecting the industry's improved operating conditions.
Industry revenue has declined at a CAGR of 7.1 % over the past five years, to reach an estimated $1.2bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2024 | Revenue ($m)
2024 |
---|---|---|
Credit Corp | 272.9 | |
Pioneer Credit | 48.0 | |
Recoveries Corporation Pty Ltd | 48.0 |
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Industry revenue is measured across several distinct product and services lines, including Contingent fee services, Portfolio acquisition services and Other debt collection services. Contingent fee services is the largest segment of the Debt Collection in Australia.
Portfolio acquisition services have become less popular
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.
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ANZSIC 7293 - Debt Collection in Australia
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The government provided businesses with assistance after the COVID-19 outbreak. This assistance dampened business bankruptcies, which negatively influenced debt collectors’ r...
Learn about an industry's products and services, markets and trends in international trade.
Contingent fee services tend to have lower fees associated with them. It is more likely that debt is recovered and costs will be covered because of earlier placement, which m...
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
New South Wales, Victoria and Queensland have the highest concentration of debt collection agencies. This trend largely follows Australia’s population distribution.
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Debt collection agencies compete with one another on services, reputation and results. Maintaining good customer relations is essential for retaining customers and attracting...
Learn about the performance of the top companies in the industry.
Credit Corp Group Limited has been acquiring other companies to expand its product and service offerings. For example, the company acquired Collection House and its operation...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Debt collection agencies must adhere to guidelines set out by the ACCC and ASIC. The guidelines aid creditors, collectors and debtors in understanding their rights and obliga...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Profit margins have been contracting, partly because of falling business bankruptcies. Government measures to keep businesses operational following the COVID-19 outbreak redu...
Including values and annual change:
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Key data sources in Australia include:
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These sources include:
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The market size of the Debt Collection industry in Australia is $1.2bn in 2024.
There are 673 businesses in the Debt Collection industry in Australia, which has grown at a CAGR of 1.6 % between 2018 and 2023.
The market size of the Debt Collection industry in Australia has been declining at a CAGR of 7.1 % between 2018 and 2023.
Over the next five years, the Debt Collection industry in Australia is expected to grow.
The biggest companies operating in the Debt Collection market in Australia are Credit Corp, Pioneer Credit and Recoveries Corporation Pty Ltd
Contingent fee services and Portfolio acquisition services are part of the Debt Collection industry.
The company holding the most market share in Australia is Credit Corp.
The level of competition is high and increasing in the Debt Collection industry in Australia.