Credit utilization is seemingly part of everyday life in the U.S. economy as consumers continue favoring rewards or more secure credit cards instead of checks and cash payments. As non-revolving credit utilization burst onto the scene in the mid-1900s, home-buying became a focal point of the American dream. Several decades later, revolving forms of credit, most notably credit cards, expanded rapidly throughout the 1990s as technology advanced and the economy was humming. Today, student and auto lending are the newest and among the largest forms of consumer debt throughout the economy, with each borrower maintaining drastically different repayment propensities and requiring distinct levels of assistance to pay off their outstanding debts. Effectively managing receivables at every stage of the debt’s life-cycle is more critical than ever with the wide variety of lending options available to and borrowing needs for consumers. The accounts receivable management (ARM) industry is simply vital for continued market and economic growth throughout the U.S.
Kaulkin Ginsberg Company (Kaulkin Ginsberg) estimate the ARM industry to amass $17.1 billion in aggregate revenue as of year’s end 2017 – the most up-to-date available data – which was up by about 4.1% year-over-year compared to 2016. Since 2000, Kaulkin Ginsberg calculated the average annual growth rate of ARM industry revenue at 4.5%, mostly due to robust growth in the debt-buying segment. As debt collectors continue incorporating more efficient processes and technology systems into their operations, while better understanding the regulatory framework of the industry, the ARM industry should swell by 4.4% annually, on average, to about $22.1 billion by 2023.
While the industry endures, evolves, and adapts, Kaulkin Ginsberg continues assisting ARM companies to expand their operations and strategic initiatives, while maximizing their growth and exit objectives. Furthermore, as critical players in the U.S. credit economy, ARM companies consistently draw interest from financial and strategic buyers. After nearly 30 years, Kaulkin Ginsberg serves as a strategic consultant and transaction advisory to current and prospective industry executives, providing premier market intelligence and strategic insight to its clients.
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