DEBT COLLECTION NEWSLETTERS:
When you sign-up for Atlas Financial Services Newsletters, you can expect two emails a month, either notifying you of significant changes that impact current clients or updates on software features that may include tutorial videos.
Thank you for becoming a partner in accounts receivables. We are excited to work for you!
Atlas Financial Gym and Fitness Debt Collection:
When Covid-19 immerged, gyms and fitness centers were financially hit. More than 1.5 million fitness professionals lost their jobs. With Covid-19 still lingering, there is no telling how many more will be closed down permanently. It is vital for gyms to make sure they are getting paid what they are owed. Gym locations typically use receptionists or accounting clerks to make calls on past-due accounts. Having your gym receptionist make calls on past-due accounts is counterproductive when their initial job is to create customer relations.
Outsourcing a debt collection agency will boost your employee gym morale, letting them focus on creating clients that want to come back because of their relationships with your staff. The worst thing you can do is hire a receptionist and have them make calls on past-due accounts with no proper training. Not training your receptionist how to collect might even get you sued if your receptionist doesn’t follow the “Fair Debt Collection Practices Act.”
As a Gym, we advise you have a process in place for members who become past due.
Step by Step Gym Collection Process Suggestion:
- Make sure all gym and fitness members sign an agreement.
- Give notification options to members, letting them know when their bill is due.
- Send the first letter after 14 days of being past due, indicating that they will be sent to collections without payment after 30 days.
- Send the second letter 5 to 7 business days before payment is due, letting them know it is their final notice to make a payment.
- Make a courtesy call right before sending an account to collections; if there is no answer, that’s a good indicator they need to be placed in collections. Always assume they can pay the total amount they owe. If they answer making a promise to pay, great if they don’t do what they promise, then send them to collections. (following these steps ensures your members that your business model is fair and reasonable.)
Atas Collection Services for Gym & Fitness Memberships is based on a contingency fee only. We do not charge our clients upfront; we only keep a portion of our agreed percentage. Typically for businesses that place only a couple of hundred accounts per year, our contingency rate is 40%.
This means you keep 60%; we keep 40%; if the account is over 150 dollars and is disputed, we can pursue it in court, our contingency rate becomes 50/50. Atlas Financial Services cover all court cost; again, we only keep the 50% if we collect.
Benefits of using a debt collection agency:
- Report Consumer to Credit Bureaus.
- Professionally Trained Collection Agents.
- Legal Protection.
- Focus on new members that pay their bills on time.
- Employee Morale Boost.