ROCKVILLE, MD: February 8, 2010 – Confidence in the economic recovery has eroded in the accounts receivable management industry (ARM), according to the results of insideARM.com’s quarterly Credit & Debt Collection Industry Confidence Survey.
The ARM Confidence Index – a weighted index calculated from the responses – slipped nearly 5 percent to 60.2 in the Winter 2010 survey, compared to the results in Fall 2009. This index provides a snapshot of the level of confidence industry leaders have for positive future performance.
“In our mid-January survey, ARM professionals expressed gradually lowering expectations for debt collection performance this year,” noted Patrick Lunsford, Senior Editor at insideARM.com. Collection agency respondents ranked expected performance six months from now at an average of 3.64 on a scale of 1 to 5, down from 3.78 in the Fall 2009 survey. ARM professionals registered a similar drop in expectations for performance 12 months down the road.
As another indicator that current economic conditions remain challenging for the ARM industry, 84 percent of agencies report that they are “somewhat” or “very” likely to modify their collection strategies. The most popular strategy shifts included accepting more payment arrangements (66.2 percent), and making more Settlement In Full (SIF) offers (42.3 percent).
“If there is positive news from the survey, it’s that the ARM industry is hiring,” said Lunsford, adding that a tough economy means an increased demand for collection services. Over 46 percent of collection agency professionals indicated their companies added positions in the fourth quarter of 2009. In the next six months, 52.8 percent of collection agency respondents expect their companies to be larger.
Less than 20 percent of ARM companies anticipate laying off workers over 2010.
To view the full results of the Winter 2010 Confidence Survey, please visit http://www.insidearm.com/go/confidence-survey/winter10.
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.