Higher Government Deficits Leading to Opportunities for ARM Companies

As state and local government deficits rise in a battered economy, more officials are turning to outsourcing the accounts receivable management function to outside collection agencies.

Patrick J. Swanick, chief executive officer of the government ARM firm Municipal Services Bureau, said debt has grown so much that governments are increasingly bringing in third party debt collection agencies to collect money that is owed to government entities.

“Using outside resources like third party collection agencies is a good move for them,” he noted. “Government entities outsourced their collections before. But many government entities are looking for extra assistance in collecting this money in the current environment.”