How Credit Corp (ASX:CDA) Swallowed Its Biggest Competitor

Debt collection is risky business but pays off more for the financially astute  The pandemic struck debt collection companies hard. Their PDLs (purchase debt ledgers — the debt you bought from other companies and you wish to collect yourself) were greatly impaired (loss in value) because if people were out of work, how could they pay back their debt? Despite this, at least one Australian debt collection company, Credit Corp, managed to survive well while its closest competitor, Collection House, sunk. Financial Discipline  The biggest difference between Credit Corp’s and Collection House’s financial statements was the flow of cash. Both companies showed…...