At present, there are over 500 companies that make up the debt collection agencies industry in Australia. There are many different factors that influence the performance of this industry. This includes everything from the debt recovery rate to the level of business and personal debt. Essentially, the state of the economy is the main factor that determines whether debt collectors are in demand and also if they are performing well.
Low concentration of ownership characterises the industry. This is a sector that is made up of many small-scale regional firms as opposed to large nationwide businesses. There are many different types of debt collection too, from mortgage payment recovery to using the services of an invoice finance company. In fact, 63 per cent of the industry is made up of firms generating less than $200,000 in revenue, and 95 per cent of the sector is made of businesses employing fewer than 20 people. However, there are a few large players, who do have a considerable market share.
Despite the debt collection industry growing and significant progress expected over the next few years, companies are still fighting the effects of the economic downtown. Over the past five years, debt collectors have suffered because debtors have been unable and sometimes unwilling to repay their debts. This has resulted in poor debt recovery rates. Because of this, a lot of debt collectors find themselves in a position whereby they need to instil confidence again. This all begins with projecting a professional business image. By doing this, debt collectors can build trust and give customers peace of mind when it comes to selecting their service. This is imperative when collecting debts on the behalf of clients.
There are various steps you can take to create a positive and professional image. It is all about coming across as an expert in your field and leaving clients with no doubt that your service is the best for them. Your website is a pivotal tool for this. It should be expertly designed and easy to use. It should contain a considerable amount of information about your services, yet in a manner that is easy to digest. The website should also be reflective of your corporate identity. Make sure you include details that are going to make people more inclined to choose your service. Don’t simply tell them that you are the best – show them. Do you have a good debt recovery rate? Have you got glowing testimonials from previous customers? This builds up your professional image in a much more effective manner than you simply telling people that your service is a high-quality one.
To conclude, hopefully, you now have a better understanding of the industry of debt collection, including the concentration of the sector and how to progress in it.