Pay up: Continued increases in aggregate household debt will present growth opportunities

Over the five years to 2017, the Debt Collection Agencies industry in Canada has experienced subdued performance as despite continue debt increases, consumers and businesses have been better able to pay off debt, which has hindered industry growth. Over the five years to 2022, as downstream clients will continue to outsource debt collection to industry operators, industry revenue is forecast to increase at a slightly faster rate compared with the previous five-year more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies

Industry Threats & Opportunities

  • M&A activity is anticipated to accelerate, due to efficiency and customer base gains
  • The recovery of debt from individuals accounts for the majority of total industry revenue
  • Debt collection agencies in Canada are primarily regulated at the provincial level
  • Industry Report - Industry Products Chapter

    Consumer debt collectionIn 2017, the collection of debt related to individuals is anticipated to account for 87.1% of total industry revenue. While the total number of domestic insolvencies has declined over the five years to 2017, the share of these insolvencies represented by consumers has increased from 96.5% in 2012 to an estimated 97.1% in 2017. Consequently, the individual debt collection segment has increased as a share of total industry revenue over the five-year period.In this segment, debt collection agencies focus on recovering both delinquent accounts and early stage delinquencies (i.e. accounts that are 180 days or less past due). Thi...purchase to read more.

    Additional Insights for the Debt Collection Agencies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Debt Collection Agencies Industry are

  • Maintenance of excellent customer relations
  • Highly trained workforce
  • Having a high prior success rate
  • IBISWorld analysts also discuss how external factors such as Aggregate household debt and Per capita disposable income in the Debt Collection Agencies industry impact industry performance..

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    What's in this report

    What is the Debt Collection Agencies Industry?

    This industry pursues payments on debts owed by individuals and businesses. Most collection agencies operate as agents of creditors and collect debts for a fee or percentage of the total amount owed. Other agencies purchase debt portfolios from creditors at deep discounts and then pursue outstanding balances for their own gain.

    Industry Products
  • Consumer mortgage debt collection
  • Consumer bank loan debt collection
  • Consumer credit card debt collection
  • Commercial debt collection
  • Credit rating and other services
  • Industry Activities
  • Individual debt collection
  • Commercial debt collection
  • Providing credit rating services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Aggregate household debt
  • Per capita disposable income
  • Consumer Confidence Index
  • Overnight rate

  • Current Performance
  • Aggregate debt and insolvencies
  • Service and market diversity
  • Labour and capital expenditure
  • Chart: Revenue Growth

  • Industry Outlook
  • Regulatory landscape
  • Benefits and internal competition
  • Table: Debt Collection Agencies Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Commercial Banking in Canada
  • Credit Card Issuing in Canada
  • Real Estate Loans & Collateralized Debt in Canada
  • Healthcare and Social Assistance In Canada

  • Key Selling Industries
  • Commercial Leasing in Canada
  • Credit Card Issuing in Canada
  • IT Consulting in Canada
  • Real Estate Loans & Collateralized Debt in Canada

  • Products & Services
  • Consumer mortgage debt collection
  • Consumer bank loan debt collection
  • Commercial debt collection
  • Consumer credit card debt collection
  • Credit rating and other services
  • Chart: Debt Collection Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Financial services sector
  • Telecommunications sector
  • Other
  • Healthcare sector
  • Retail and commercial sector
  • Government agencies
  • Chart: Major Market Segmentation for the Debt Collection Agencies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages and depreciation
  • Purchases and rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Debt Collection Agencies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Debt Collection Agencies Industry

  • Industry Globalization
    NCO Financial Systems Inc.,
  • Table: NCO Financial Systems Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Debt Collection Agencies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Debt Collection Agencies Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Aggregate household debt (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Business Process Outsourcing (Bpo)
  • The outsourcing of specific business functions to third-party providers, including debt collection agencies.
  • Insolvencies
  • Equal to the sum of the number of bankruptcies and proposals.
  • Proposal
  • An offer to creditors to settle debts under conditions alternative to the current terms.
  • Skip Tracing
  • The search for a consumer's contact information through consumer databases, telephone directories, credit agency reports and other records.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Debt Collection Agencies market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

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    This report on Debt Collection Agencies:
    • 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 Agencies 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 Agencies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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