Orange County, CA, June 29, 2017 --(PR.com
)-- Document Processing Business Student Debt Relief With Recurring Revenues.
Started in 2014, the document processing business specializes in the student loan debt relief industry. Student loans play a very large role in U.S. higher education with close to 12 million students borrowing annually to cover costs. And every day 3,000 people default on their student loans. More than 1.1 million Federal Student Loan Defaults in 2016! This upstart company has grown exponentially by offering transparency along with knowledgeable and trained customer account representatives. The owners took their background in the debt consolidation business and have created a fast-growing business with significant recurring revenues.
Revenues projected to be $2.2 mil in 2017
Projected revenues for 2018 are $5 mil.
Recurring Revenue approximately 20% of total and growing each year
Student Loan Defaults: As of the end of 2016, 42.4 million Americans owed $1.3 trillion in federal student loans. According to the Consumer Federation of America, during 2016, federal student loan defaults grew by 14%; more than 1.1 million federal student loan defaults took place in 2016. Student loan servicers such as SLE, are responsible for enrolling borrowers in repayment plans to help them avoid default.
Debt Collection Market Segment: According to Ernst & Young, money owed to health care providers (hospitals, physician groups and clinics) is the leading category of debt handled by collection agencies, accounting for nearly 40% of all debt collected in the industry. Student loan debt is next (about 25% of debt collected), followed by credit card debt (10%).
Aggregate Household Debt: The more debt a household accrues, the more opportunities arise for industry operators. At a certain point, however, increased financial liability increases the chance of default. Typically after defaulting, households begin the process of paying off old debt while not taking on new debt, which is also known as deleveraging. Fortunately for industry operators, aggregate household debt is expected to rise in 2017, representing a potential opportunity for the industry.
Average Loan Amounts: The average amount owed is $30,650 per federal student loan borrower. Average amount owed per borrower continues to tick up, rising 17% since the end of 2013, when borrowers owed on average of $26,300.
This business is looking for new owners who can take advantage of these market conditions and grow this business rapidly.
Empire Business Solutions, a leading independent business brokers in Los Angeles and Orange County is pleased to announce the company has signed an exclusive right to sell Engagement letter with a local company to bring it to market.
Contact Roy Moss, President of Empire Business Solutions at 714-374-6430 to discuss the process in selling or buying a business in Orange County. Empire has been in business since 2005 and is considered a leading California business broker with offices in Orange County and Los Angeles with primary emphasis on businesses in the $1.0 mil-$10.0 mil revenue range.