Industry that has direct knowledge of consumer liquidity is not yet experiencing an economic rebound
ROCKVILLE, MD: August 19, 2009 – U.S. collection agencies report an increased demand for their services but at the same time, a decline in collection performance, according to a new survey released by Kaulkin Ginsberg, a leading strategic advisor to the Accounts Receivable Management industry (ARM).
Two-thirds (66.7 percent) of ARM companies reported moderate or significant increases in account placements from their clients. Survey respondents also indicated that second quarter collection performance declined from the first quarter of this year. On a scale of 1 to 5, with 5 being the best performance, collection agencies rated second quarter performance with an average of 3.08, down from the 3.35 reported for the first quarter.
Patrick Lunsford, Senior Editor at insideARM.com, explained that the industry is feeling the effects of the economy from both ends – there is an increased workload from clients, but consumers are less able to pay.
“With consumers strapped for cash, collection agencies are accepting payment plans rather than getting a payment in full,” said Lunsford. “This impacts the bottom line of many agencies.”
Layoffs are continuing in the industry. In fact, 32.2 percent of collection agency respondents reported layoffs in the second quarter, the highest percentage since the Confidence Survey began in mid-2008. An incredible 41.4 percent of debt buyer participants also reported layoffs in the quarter.
The complete results of the Credit & Debt Collection Industry Confidence Survey, Summer 2009, including responses from debt buyers, creditors, and technology vendors to the ARM industry, are available online at: www.insidearm.com/go/survey-results.
Contact
Patrick Lunsford, Senior Editor, insideARM.com
240-499-3828
About Kaulkin Ginsberg
Kaulkin Ginsberg is the leading boardroom-level advisor to the Accounts Receivable Management Industry (ARM). Credit and debt collection professionals, owners, and investors worldwide rely on us for the insight, access and information needed to make well-informed decisions. Value-add consulting and M&A services cover almost every stage of a company’s lifecycle, from strategic analysis to growth and exit strategies. Sister company insideARM.com is the leader in providing timely news and perspective on the recovery of debt in all industries. For more information, please visit www.kaulkin.com.