Debt Collection in Australia - Market Research Report (2013-2028)
Melbourne, Australia
Last Updated: August 2023
ANZSIC N7293aRevenue
$1.2bn
Past 5-Year Growth
Profit
$XX.Xm
Employees
6,168
Businesses
673
Wages
$XXX.Xm
Debt Collection in Australia industry analysis
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.
Trends and Insights
- The government provided businesses with assistance after the COVID-19 outbreak. This assistance dampened business bankruptcies, which negatively influenced debt collectors’ revenue.
- 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 makes these services more popular.
- New South Wales, Victoria and Queensland have the highest concentration of debt collection agencies. This trend largely follows Australia’s population distribution.
- Debt collection agencies compete with one another on services, reputation and results. Maintaining good customer relations is essential for retaining customers and attracting new clients.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 7.1 % over the past five years, to reach an estimated $1.2bn in 2023.
Trends and Insights
Government contingencies have caused debt collection agencies to struggle
- Business conditions have been volatile over the past few years, particularly in the COVID-19 outbreak's aftermath.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Weaker economic conditions are set to fuel industry recovery
- Interest rates are on track to keep climbing in the coming years, elevating the ratio of interest payments to disposable income. The household debt to assets ratio is also likely to increase in response to continuing inflationary pressures, broadening agencies' scope for expansion.
Biggest companies in the Debt Collection in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Credit Corp | 272.9 | |
Pioneer Credit | 48.0 | |
Recoveries Corporation Pty Ltd | 48.0 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
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.
Trends and Insights
Portfolio acquisition services have become less popular
- Debt collection firms often buy portfolios at a discount. Prices tend to be 5% to 10% of the accounts' aggregate principal value, with an inverse correlation between the purchase price and the accounts' age.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Legal Services in Australia
- Accounting Services in Australia
- Investigation and Security Services in Australia
- Credit Agencies in Australia
International industries
- Debt Collection Agencies in the US
- Invoice Factoring in the US
- Debt Collection Agencies in Canada
- Credit Reporting and Debt Collection Services in New Zealand
- Factoring in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Contingent fee servicesPortfolio acquisition servicesDebt collection trainingCredit managementHardship managementInsolvency managementCompanies
Credit CorpPioneer CreditRecoveries Corporation Pty LtdPurchase this report to view all 6 major companies in this industry.
Related Terms
MERCANTILE AGENTSLEDGERCONTINGENT COLLECTION PURCHASED DEBT LEDGER (PDL)Industry Code
ANZSIC 7293 - Debt Collection in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The government provided businesses with assistance after the COVID-19 outbreak. This assistance dampened business bankruptcies, which negatively influenced debt collectors’ r...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
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...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2023
- Product innovation level
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales, Victoria and Queensland have the highest concentration of debt collection agencies. This trend largely follows Australia’s population distribution.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each region in 2023
- Number and share of revenue each region accounts for in 2023
- Number and share of wages each region accounts for in 2023
- Number and share of employees in each region in 2023
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
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.
Analyst insights
Debt collection agencies compete with one another on services, reputation and results. Maintaining good customer relations is essential for retaining customers and attracting...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
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...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Credit Corp's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Pioneer Credit's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Recoveries Corporation Pty Ltd's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for Credit Corp, and factors influencing its performance in the industry
- Description and key data for Pioneer Credit, and factors influencing its performance in the industry
- Description and key data for Recoveries Corporation Pty Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
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...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit margins have been contracting, partly because of falling business bankruptcies. Government measures to keep businesses operational following the COVID-19 outbreak redu...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Debt Collection industry in Australia in 2024?
The market size of the Debt Collection industry in Australia is $1.2bn in 2024.
How many businesses are there in the Debt Collection in Australia industry in 2023?
There are 673 businesses in the Debt Collection industry in Australia, which has grown at a CAGR of 1.6 % between 2018 and 2023.
Has the Debt Collection industry in Australia grown or declined over the past 5 years?
The market size of the Debt Collection industry in Australia has been declining at a CAGR of 7.1 % between 2018 and 2023.
What is the forecast growth of the Debt Collection industry in Australia over the next 5 years?
Over the next five years, the Debt Collection industry in Australia is expected to grow.
What are the biggest companies in the Debt Collection market in Australia?
The biggest companies operating in the Debt Collection market in Australia are Credit Corp, Pioneer Credit and Recoveries Corporation Pty Ltd
What does the Debt Collection in Australia include?
Contingent fee services and Portfolio acquisition services are part of the Debt Collection industry.
Which companies have the highest market share in the Debt Collection in Australia?
The company holding the most market share in Australia is Credit Corp.
How competitive is the Debt Collection industry in Australia?
The level of competition is high and increasing in the Debt Collection industry in Australia.
