Collections During Times of Economic Uncertainty

As the country and world face economic uncertainty, your business may be concerned about whether accounts sent to collections will actually lead to recovered funds. If more people struggle to pay their dues, leading to the collections process, will they actually pay the amount owed?

It may be hard enough to get new business and getting the ones you have to pay their dues during difficult economic times consistently, but your business shouldn’t have to concern itself with collections as well.

Collections and Recession

The United States isn’t currently in a recession, although it’s possible the country will enter one. Even so, many people are struggling with bills. Statistics show that about 40 percent are having difficulty paying their bills.

These are concerning signs for businesses, which require people to have extra money to pay for monthly dues. People who are struggling to pay basic bills, such as rent and utilities, may decide to forgo payments all together. This can lead to more accounts going into the collections process, and your gym may already be facing this burden and the worry that the trend could continue.

Nonetheless, it’s not all downhill for collections. Financial experts often advise people to pay off debt before or during a recession, which may encourage people to pay their delinquent accounts. Paying off debt in preparation for a recession creates a better financial picture for more stability if times get tougher. 

Many people will follow this kind of financial advice and pay off their debt before or during a recession. Doing so can help keep their financial situation in good shape and avoid having the debt go on their credit report.

Does the Collections Process Work During Economic Downtimes?

Your business will likely wonder whether Aldous & Associates can still recoup lost dues during economic downtimes. Even if your business notices more people going to the collections process, don’t worry. We are still able to collect consistently during these times to provide revenue.

How is Aldous & Associates able to collect when people are struggling financially? We carry out the collections process through a law office, which adds to the legitimacy and clout of the request. People who are concerned about keeping their finances in good order want to avoid having the debt go on their credit report, so they want to resolve the issue and move forward. Also, keep in mind that some people with delinquent accounts may have another reason for not paying than financial struggles, and our gentle collections process has high success rates.

Then, we have a frictionless collections experience that makes it easy for members to communicate and pay. People often desire to pay off their debts but feel embarrassed, ashamed, intimidated by collections, or experiencing other difficult feelings. We aim to take away these concerns and help the person easily fix their financial situation and, if possible, their relationship with your business.

It’s helpful to avoid further financial problems and create more stable finances during financial downtimes or any time. We at Aldous & Associates help people do that regarding their collections.