$831.6m
$XX.Xm
7,604
297
$XXX.Xm
Debt collection agencies in Canada have slowly grown throughout the period as economic swings affected their ability to collect debt. During the pandemic, insolvency among consumers and businesses fell drastically as government support and policies pushed banks and other institutions to defer mortgage, credit card and other payments for the time being. This weakened the need for debt collection agencies as companies. As the economy recovered and payments were reinstated, insolvency trends reversed and climbed as clients required debt collection agencies to help secure their money. Overall, revenue is expected to grow a CAGR of 1.5% to $831.6 million through the end of 2023, increasing 6.7% in 2023 alone.The majority of agencies are small and typically serve local or regional markets. Even so, merger and acquisition activity has continued to expand as companies seek economies of scale and scope. This allows agencies to help meet client needs across the nation. It also reduces operational costs and bolsters profit for larger enterprises.A thriving economy will mean more consumers and businesses will pay off their debts before they default. Even so, debt collection agency services will still be required amid rising unemployment and debt from the prior period. Debt collectors will adopt cost-saving communications technology and enhanced data analytics tools to minimize volatility. Most large agencies have the financial capabilities for technological enhancements, giving them a competitive advantage. Overall, revenue is expected to grow at a CAGR of 1.5% to $896.1 million through the end of 2028.
Industry revenue has grown at a CAGR of 1.5 % over the past five years, to reach an estimated $831.6m in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Alorica Inc. | 49.8 | 2.5 | 5.0 | |
Bill Gosling Outsourcing Holding Corporation | 29.9 | N/A | N/A | |
Metropolitan Credit Adjusters Ltd. | 27.0 | N/A | N/A |
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Debt Collection Agencies in Canada
Industry revenue is measured across several distinct product and services lines, including Consumer mortgage debt collection, Consumer credit debt collection and Commercial debt collection. Consumer mortgage debt collection is the largest segment of the Debt Collection Agencies in Canada.
Mortgage debt collection continues to expand
The Debt Collection Agencies industry in Canada 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.
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NAICS 561440 - Debt Collection Agencies in Canada
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
The need for debt collection agencies weakened amid the pandemic. Many mortgage, credit card and other payments were deferred to address economic hardships.
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Ontario is a massive business hub, making it a prime location for agencies. The province is home to four of Canada’s Big Six banks, giving them access to various customers.
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.
Rising competition has led to an uptick in consolidation. Larger companies are acquiring smaller agencies to expand their domestic outreach and achieve economies of scale.
Learn about the performance of the top companies in the industry.
In 2021, Alorica announced its collaboration with Teledesk, a cloud technology provider that provides communication-based products. This helps Alorica operate more efficientl...
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Debt collection agencies are bound by stringent regulations governing their interactions with consumers and businesses. These regulations forbid any form of intimidation or d...
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Wages remain the largest expense for debt collection agencies because of their diverse workload. Even so, larger companies are using cost-saving technology to reduce costs.
Including values and annual change:
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Key data sources in Canada include:
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These sources include:
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The market size of the Debt Collection Agencies industry in Canada is $831.6m in 2024.
There are 297 businesses in the Debt Collection Agencies industry in Canada, which has declined at a CAGR of 4.0 % between 2018 and 2023.
The market size of the Debt Collection Agencies industry in Canada has been growing at a CAGR of 1.5 % between 2018 and 2023.
Over the next five years, the Debt Collection Agencies industry in Canada is expected to grow.
The biggest companies operating in the Debt Collection Agencies market in Canada are Alorica Inc., Bill Gosling Outsourcing Holding Corporation and Metropolitan Credit Adjusters Ltd.
Individual debt collection and Commercial debt collection are part of the Debt Collection Agencies industry.
The company holding the most market share in Canada is Alorica Inc..
The level of competition is moderate and increasing in the Debt Collection Agencies industry in Canada.