Debt Collection Agencies in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 56144CARevenue
$831.6m
Past 5-Year Growth
Profit
$XX.Xm
Employees
7,604
Businesses
297
Wages
$XXX.Xm
Debt Collection Agencies in Canada industry analysis
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.
Trends and Insights
- The need for debt collection agencies weakened amid the pandemic. Many mortgage, credit card and other payments were deferred to address economic hardships.
- The construction and manufacturing sectors take on a large amount of debt to help fund projects and borrow equipment. A slowdown in either sector can lead to massive debt obligations, causing the need for agency services.
- 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.
- 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.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 1.5 % over the past five years, to reach an estimated $831.6m in 2023.
Trends and Insights
The pandemic has its ups and downs
- While the pandemic spelled doom for many consumers and businesses, the total number of insolvencies plummeted, with a record-high percentage decrease from 2019 to 2020.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A thriving economy can have some mixed effects
- As interest rates continue to push upward, fewer consumers and businesses will be willing to take out loans, reducing new debt. Even so, debt from the prior period will still need to be collected, providing agencies with work.
Biggest companies in the Debt Collection Agencies in Canada
| Company | Market Share (%)
2023 | Revenue ($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 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Debt Collection Agencies in Canada
Products & Services
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.
Trends and Insights
Mortgage debt collection continues to expand
- Mortgage debt collection is the largest segment for debt collection agencies.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Human Resources & Benefits Administration in Canada
- Telemarketing & Call Centres in Canada
Complementors
- Commercial Banking in Canada
- Credit Unions in Canada
International industries
- Debt Collection Agencies in the US
- Debt Collection in Australia
- Credit Reporting and Debt Collection Services in New Zealand
- Debt Collection Agencies in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Individual debt collectionCommercial debt collectionProviding credit rating servicesCompanies
Alorica Inc.Bill Gosling Outsourcing Holding CorporationMetropolitan Credit Adjusters Ltd.Purchase this report to view all 3 major companies in this industry.
Related Terms
SKIP TRACINGINSOLVENCIESPROPOSALBUSINESS PROCESS OUTSOURCING (BPO)Industry Code
NAICS 561440 - Debt Collection Agencies in Canada
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 need for debt collection agencies weakened amid the pandemic. Many mortgage, credit card and other payments were deferred to address economic hardships.
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
The construction and manufacturing sectors take on a large amount of debt to help fund projects and borrow equipment. A slowdown in either sector can lead to massive debt obl...
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
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.
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, 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
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.
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
In 2021, Alorica announced its collaboration with Teledesk, a cloud technology provider that provides communication-based products. This helps Alorica operate more efficientl...
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 Alorica Inc.'s performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Bill Gosling Outsourcing Holding Corporation's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Metropolitan Credit Adjusters Ltd.'s performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Alorica Inc., and factors influencing its performance in the industry
- Description and key data for Bill Gosling Outsourcing Holding Corporation, and factors influencing its performance in the industry
- Description and key data for Metropolitan Credit Adjusters Ltd., and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Debt collection agencies are bound by stringent regulations governing their interactions with consumers and businesses. These regulations forbid any form of intimidation or d...
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
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.
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
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- 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 Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
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 Agencies industry in Canada in 2024?
The market size of the Debt Collection Agencies industry in Canada is $831.6m in 2024.
How many businesses are there in the Debt Collection Agencies in Canada industry in 2023?
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.
Has the Debt Collection Agencies industry in Canada grown or declined over the past 5 years?
The market size of the Debt Collection Agencies industry in Canada has been growing at a CAGR of 1.5 % between 2018 and 2023.
What is the forecast growth of the Debt Collection Agencies industry in Canada over the next 5 years?
Over the next five years, the Debt Collection Agencies industry in Canada is expected to grow.
What are the biggest companies in the Debt Collection Agencies market in Canada?
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.
What does the Debt Collection Agencies in Canada include?
Individual debt collection and Commercial debt collection are part of the Debt Collection Agencies industry.
Which companies have the highest market share in the Debt Collection Agencies in Canada?
The company holding the most market share in Canada is Alorica Inc..
How competitive is the Debt Collection Agencies industry in Canada?
The level of competition is moderate and increasing in the Debt Collection Agencies industry in Canada.
