However, this influx also means you'll face a larger pool of members with varying levels of commitment.
As the initial excitement fades, some of these new members may lose interest and look to cancel their memberships outside of their contract, leading to a rise in overdue payments and additional strain on your gym’s cash flow.
The broader context is that many gyms and leisure businesses in the UK are already struggling financially. According to a recent report by UK Active, 41% of leisure businesses in the UK have experienced increased payment delays from their customers with SMEs feeling the impact more than larger, more established chains.
Given these challenges, now is the perfect time for gym and leisure businesses alike to consider introducing a debt collection agency. Here’s why:
Maintain cash flow despite cancellations
A debt collection agency can help you recover overdue payments efficiently, ensuring that your gym maintains a healthy cash flow even if some members decide to cancel. By outsourcing collections, you can focus on managing new memberships and improving member satisfaction, knowing that your financial interests are being protected.
Handle increased volume with expertise
With more new members joining, the volume of accounts to manage will increase. Debt collection agencies are well-equipped to handle high volumes of accounts and can effectively track and follow up on overdue payments. Their expertise ensures that payment issues are resolved promptly, reducing the risk of revenue loss.
At this crucial time, consider our specialist high-volume debt collection service, Collections+, designed specifically to manage the complications of increased membership and ensure your gym’s financial stability.
Protect your gym’s reputation
Managing overdue payments internally can sometimes lead to strained relationships with members, especially if handled improperly. Debt collection agencies use professional and respectful approaches to recover payments, helping to maintain your gym’s reputation and avoid negative interactions with your staff and members.
Reduce administrative burden
The summer rush can put extra pressure on your administrative staff. By outsourcing debt collection, you can alleviate some of this burden, allowing your team to focus on providing excellent service and engaging with members.
Overall, the summer surge in gym memberships is a real opportunity for growth, but it also brings the challenge of keeping your new members’ accounts on track. Enlisting the help of a debt collection agency can help protect your revenue and ensure nobody is breaching their contract. Allowing you and your team to focus on what you do best, running your business.
Don’t let payment issues undermine your summer success – explore how a debt collection agency can help you maintain financial stability and ensure a smooth, profitable season.
For more tips on managing gym memberships and enhancing revenue, contact us today.
