Rising interest: The low official bank rate has supported borrowing and boosted demand

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.The industry's performance has been mixed over the past five years. Over the five years through 2017-18, revenue is projected to increase at a compound annual rate of 1.9% to £1.5 billion. Profit margins are expected to rise, although revenue is only anticipated to increase in three years of the period...read more.

Industry Statistics & Market Size
Revenue
£1.5bn
Annual Growth 13-18
1.9%
Forecast Growth 18-23
Profit
Employment
12,490
Businesses
670
Market Share of Companies

Industry Threats & Opportunities

  • Increasing household and business debt have supported demand and revenue in recent years
  • Firms can now use data analytics tools to determine the likelihood of collecting a debt
  • Rising disposable income and consumer confidence is expected to support consumer credit growth
  • Industry Report - Starting a New Business Chapter

    Barriers to entering the industry are moderate but increasing. The main challenges that new entrants face include complying with regulatory requirements, finding a suitably skilled workforce, developing a client base and building relationships with financial institutions. Entry into the debt portfolio business segment is further restricted because operators must have access to sufficient credit to fund the initial purchases of debt portfolios. These firms must maintain strong relationships with both their clients and their financiers. Fur...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
  • Demand dips
  • Purchase prices
  • Economic effects
  • Regulatory changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Drivers of growth
  • Consolidation activity
  • Specialised software
  • 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
    ProfitPurchasesWagesDepreciation and other 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,
  • Table: Lowell Finance Holdings 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • 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.
  • Working Capital
  • Money available to a company for day-to-day operations.
  • What Our Customers Say

    Why buy this report?

    The Debt Collection Agencies market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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