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

The Debt Collection Agencies industry in Canada has performed poorly over the five years to 2019 as marked improvements in the ability of both consumers and businesses to service their debt on the original payment terms has hindered industry growth. The aggregate level of household debt has increased during the period as consumers have become increasingly comfortable taking on new debt. However, disposable income improvement and stable economic growth have enabled households to pay their debts at higher rates. Consequently, the rate of insolvencies by consumers has declined during the period. Over the five years to 2024, industry revenue is forecast to more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

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 Investment Chapter

    The Debt Collection Agencies industry in Canada operates with a very low level of capital intensity. IBISWorld estimates that for every $1.00 spent on labour, industry operators will allocate $0.02 to capital investment in 2019. Debt collection agencies rely extensively on labour for each of their service offerings. For larger industry operators, telephone representatives account for the majority of their employees. While these individuals are generally only hired if they have prior job-related experience, they also receive a good deal of training with respect to interacting with clients and complying with provincial requirements. Int...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 credit debt collection
  • Commercial debt collection
  • 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
  • Labour and capital expenditure
  • Service and market diversity
  • Chart: Revenue Growth

  • Industry Outlook
  • Benefits and internal competition
  • Regulatory landscape
  • 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 credit debt collection
  • Commercial debt collection
  • Other services
  • Chart: Debt Collection Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Other
  • Construction sector
  • Retail and commercial sector
  • Manufacturing sector
  • Professional services sector
  • 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
    ProfitWages and depreciationPurchases and rent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Debt Collection Agencies

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Debt Collection Agencies Industry

  • Industry Globalization
    Bill Gosling Outsourcing Holding Corporation, Alorica Inc.,
  • Table: Bill Gosling Outsourcing Holding Corporation - financial performance
  • Table: Alorica 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Per capita disposable income (2010-2024)

  • 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 provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

    IBISWorld industry market research reports enable you to:
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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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