Debt Collection Services: When Do Gyms Need A Collection Agency?

Debt Collection Services

There are so many things to love about owning your own gym. Can anything top the satisfaction you get from seeing people working hard to be their healthiest selves? There’s a lot to enjoy about owning a gym, but there’s one universal downside people can agree on: dealing with past due payments. 

Debt collection is an unpleasant but important part of every business. If you want to handle things the right way, consider using professional debt collection services for your gym. 

Bringing in fitness center debt collection help can seem like a bit much, but it’s actually exactly what you need if you value your business and customers. You may be on the fence now, but there are some situations where bringing in professional debt collection help is always the right answer.

You Have Multiple Delinquent Accounts

Staying on top of missed payments can be difficult enough for small business owners, but things get even more complicated when you add on more people. Suddenly something as simple as collecting a payment becomes a series of missed calls, ignored emails, and sent certified letters. When you multiply all of these efforts by 5x or even 10x, it’s easy to see how businesses fall behind. 

Your business runs on membership dues, and after a while, even just having a few behind members can cause serious problems with your financials. After months of attempted collection attempts, it’s time to bring in the professionals. 

Debt collectors will have no problems juggling multiple late accounts. They’ll know how to keep records updated and everyone on the same page about what’s expected of them and next steps. 

Your Cash Flow is Directly Impacted 

Cash flow is one of the most important parts of determining the financial health and longevity of a company.  If debt collection problems go on too long, your flow and bottom line can be at stake. 

Delinquent accounts can easily turn into missed rent payments and late paychecks. Bring in a debt collection agency to make sure things don’t get too fargone. 

When you bring on a debt collection agency, you’ll have someone that can help you get what you’re owed fast. They know all of the latest techniques and ways to get people to pay their past-due bills. 

You Don’t Know How Many Past Due Accounts You Have 

The front desk people know that there are at least 3 regular members who haven’t paid, but the trainers think that number must be off since they haven’t been getting their usual commission. There are plenty of members who haven’t been to the gym in awhile, but you have no idea if they’re actually on top of their payments. 

This may sound like a strange problem to have, but it’s a lot more common than you’d think. Most gyms members likely have their accounts on autopay. Some places may not even notice that there’s a problem until accounting notices that there’s a lot of missing money. 

If you don’t have a lot of insight into your account situation, now is the perfect time to bring in debt collection help. They’ll be able to sort through all of your past-due information so you can get a good idea of how many people owe what. 

You’re Worried About Preserving Relationships

When most other businesses deal with a past due account everything is handled through phone or e-mail. It’s easier for them to stay on top of things because everything feels a little detected. When gyms have to handle debt collection things can get far too personal for everyone involved. 

Trainers and other staff that work directly with clients can be put into a pretty uncomfortable place when they’re forced to also act as debt collectors. It can be awkward having to call someone about their past-due debt then swipe them into the gym an hour after a tense conversation.

You don’t want your stellar staff to be negatively impacted by some overdue bills. Keep your most important relationships intact by using a debt collecting agency. 

People that work for a commercial debt collection agency won’t have to worry about feelings or existing relationships getting in the way. They’ll be able to handle everything as professionally as possible without having to get your staff involved. 

Your Customer Base is Spread Out 

Debt collection can be difficult enough when you’re focusing on one location or business. Things can get much more complicated when you factor in distance. 

When your customers are located in different areas it can be much more difficult to reach them. If you have locations in different states and counties, the debt collection laws can differ significantly. 

Keeping up with rules and regulations for different areas can be tricky. Luckily, a debt collection agency can handle all of that and more. They’ll understand the legal side of debt collection so you can ensure you’re doing everything by the book. 

You Need a Paper Trail 

In some cases, phone calls and strongly worded letters won’t be enough to get someone to pay their debt. It’s very possible that you may need to go to small claims court or take other kinds of legal action to get people to pay what they owe. 

Gym owners that find themselves in court are going to want plenty of documentation to make their case. Records of attempts to get in touch and sent bills can be what you need to win.

When you work with a debt collection agency you’re already setting yourself up to have everything you need in court. They’ll keep meticulous records you can use to make your case to the judge, lawyer, or even a difficult client. 

Debt Collection Services Done Right

Gym owners shouldn’t have to spend their time chasing down delinquent account owners. If you’re ready to focus on the work that matters most to you, bring in debt collection services to help. 

Do you have questions about how collection services can benefit your gym? Are you curious about how debt collection works in general? Regardless of what you need, contact us today so we can take care of your debt collection needs.