The Investigation and Debt Collection Industry - an Emerging and Untapped Market
The greatest frustration in the recovery of debt is the inability to locate debtors or secured property, because of high cost or lack of resources.
For businesses and individuals alike, the high cost of debt recovery eats into profitability and even affects morale. Invariably, the cost is passed on to consumers through increased charges or decreased services. If a business operates on a profit margin of 10% it will need to bring in $1,000 in new business to recover from the loss of $100 in bad debt or stolen property. For many small businesses the cost of unpaid or "bad" debt can mean the difference between viability and closure.
Those agencies providing accessible, technology-driven services with the capability for recovering debt and locating people or property on an national level will become the true industry leaders. Clients are seeking affordable, efficient and cost effective services while maintaining quality of service and only those companies capable of utilizing the latest technology will move forward.
A transient population means that investigation and debt collection is entering a new era, where the successful debt collector combines investigation skills with debt recovery skills.
The industry leaders to emerge will be those who are able to combine investigation services with debt recovery services to meet the increasing demands of clients looking to outsource their investigation and debt recovery in a changing market.
The investigation industry is an industry where currently the needs are many and the innovative solutions are few. Businesses albeit unwillingly accept that a certain level of loss will be sustained as a result of theft or fraud. Similar to the affect of bad debt this loss is passed on to consumers through increased charges or decreased services.
Agencies capable of providing a cost effective solution to locating people and property will also emerge the winners in the investigation industry.
Considering the resources that society can afford to provide to them, the police and our legal system are remarkably efficient at detecting, apprehending and bringing to trial people who transgress the law. However, there are a vast number of law-breakers who wittingly or unwittingly fall into the category of being too small to worry about - too hard to locate and apprehend.
An agency that can offer solutions to fill this gap and offer a truly national service will automatically capture a large portion of the private investigation and debt collection industry worth many millions of dollars.
The days of the investigation and debt collection industry being a closet industry are well and truly gone as businesses are proving more receptive to utilizing the services of private investigators and debt collectors. The market is changing as a new clientele of smaller business operators are expanding a previously corporate based market.
Even greater opportunities exist for the market as it moves to provide services to the general public, an area of the market largely untapped by commercial enterprises to date. Agencies need to be able to recognise the needs of the public and not only provide a service which fulfils those needs, but make themselves visible and accessible. Lack of awareness is the only factor stopping the public from instructing an investigation and debt recovery agency when the police or legal system are unable to assist them.
Innovative agencies able to recognize the untapped market needs will effectively create a market for those needs and a product that fulfills it.
Clients conscious of costs are seeking companies capable of meeting all their investigation and debt recovery needs as they wish to deal with only one service provider. The days of debt recovery agencies outsourcing to investigation agencies to fill the gap in locating and recovering is coming to an end. The true winners will be those companies capable of combining investigation with debt recovery skills on an national level thereby bringing new efficiencies to both markets.