Growing interest: Rising recovery rates amid strong economic conditions has supported revenue

Debt collection agencies provide two main services: traditional debt collection on behalf of a third party, such as credit card companies, where a service fee is charged on debt collected; and debt portfolio acquisition, whereby an industry operator purchases a ledger or portfolio of debts at a discount and collects on these debts. 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 debt recovery rates.Industry performance has been somewhat volatile over the past five years, but has been positive overall. During the five-year period through 2018-19, revenue is forecast to increase at a compound annual rate of 0.6% to reach £1.5 more.

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

Industry Threats & Opportunities

  • Despite volatility, industry revenue is expected to have grown over the past five-year period
  • Poor economic conditions following the referendum increased the amount of debt available for collection
  • A growing number of company insolvencies is expected to increase opportunities for debt collection
  • Industry Report - Industry Key Buyers Chapter

    The industry is considered to have a moderate level of market share concentration. IBISWorld expects the top four industry players to account for 49.8% of industry revenue in 2018-19. However, the industry is split between several small-scale, regional operators with insignificant market shares; and larger companies that have financial backing from private equity funds and financial institutions, which control a significant share of the market. Only 2.7% of firms in the industry can be classified as small and medium-size enterprises, meaning they have 250 or more employees. Approximately 82.8% of enterprises have fewer than 10 members of staff.Despite the high volume of consumer and commercial debt, some operators have struggled in the industry’s competitive environment. Som...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

  • Offering clients a range of payment options
  • Ability to compete on tender
  • Ability to manage external (outsourcing) contracts
  • IBISWorld analysts also discuss how external factors such as Business lending and Number of UK company insolvencies 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?

    The industry includes companies that purchase debt portfolios from financial institutions and other companies at less than their face value. They then seek to recover the outstanding amounts. The industry also covers agencies that collect debts on behalf of clients, charging a fee or taking a percentage of the funds recovered.

    Industry Products
  • Contingent-fee servicing
  • Portfolio-acquisition servicing
  • Fixed-fee servicing
  • Collateral recovery and repossession services
  • Industry Activities
  • Debt collection
  • Bill collection
  • Debt portfolio acquisition
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business lending
  • Number of UK company insolvencies
  • Ratio of household debt to disposable income
  • Number of personal insolvencies
  • Official bank rate
  • National unemployment rate

  • Current Performance
  • Current Performance continued
  • Economic conditions
  • Purchase prices
  • Industry consolidation
  • Regulatory changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand drivers
  • Consolidation
  • Software innovation
  • EU effects
  • 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
  • Electricity Distribution
  • Department Stores
  • Banks
  • Financial Leasing

  • Key Selling Industries
  • Call Centres
  • Computer & Peripheral Equipment Wholesaling
  • Software Development
  • Temporary-Employment Placement Agencies

  • Products & Services
  • Contingent-fee servicing
  • Portfolio-acquisition servicing
  • Fixed-fee servicing
  • Collateral recovery and repossession services
  • Chart: Debt Collection Agencies Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers
  • Consumers with secured (mortgage) debt
  • Businesses
  • Other personal receivables
  • 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
    ProfitPurchasesWagesOther costs
  • 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
    Lowell Finance Holdings Ltd, Arrow Global Ltd, Cabot Financial (Europe) Ltd,
  • Table: Lowell Finance Holdings Ltd - financial performance
  • Table: Arrow Global Ltd - financial performance
  • Table: Cabot Financial (Europe) Ltd - 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)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Accounts Receivable
  • Money that a customer owes for goods or services they have received or used.
  • Non-Performing Accounts
  • Accounts where the debtor has not made any payments to their creditor for 90 days or more.
  • Recovery Rate
  • The proportion of funds actually recovered from the total value of outstanding debt within a debt book or portfolio.
  • 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.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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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 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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