Subscription debts,students and new year resolutions!
This blog talks about Subscription type debts and how they come about. We talk about Gym memberships after Christmas and cinema passes, with people thinking, ‘it will save money in the long run and I’m sure I’ll go enough to make it worth my while.’
Students up and down the country
University cities and towns up and down the country are once again full of returning students and fresh-faced first years. The start of the new academic year usually brings with it a flush of optimism that this is the year they will be active, work hard and get the most out of their student life. The student loan hasn’t been spent yet and, in an effort to save money, subscriptions are taken out. A good example of this type of subscription are cinema passes, with people thinking, ‘it will save money in the long run and I’m sure I’ll go enough to make it worth my while.’
Money getting tighter
Once Christmas has been and gone and money is tighter, and the cinema has not been visited as regularly as they’d hoped, a lot of these direct debits are cancelled. This is where problems arise for the cinemas. The subscriptions to allow access to unlimited films, or watch at reduced prices, are annual subscriptions. An agreement has been entered into and the cinemas subsequently budget on the assumption that this revenue will continue for the full 12 month period. One cancelled subscription would not have a big impact on the business, but if these cancellations run into the hundreds or thousands, the loss of revenue becomes significant.
Fitness industry ‘the gym’
This type of debt is also prevalent in the fitness industry. The New Year’s resolutions are made in good faith and there is every intention that the gym will be visited a few times a week, every week. But February is dark and miserable, the visits tail off and the subscription is cancelled without giving the appropriate notice. Again, while one cancelled membership won’t ruin the business, these debts can accumulate and quickly grow into a sizeable amount.
Maintaining cash flow
Recovering this type of debt is essential for these businesses. Cash flow is vital for the long-term viability of any company, it means more effective forward planning and security for the workforce. It can prove very time-consuming for the company to recover these debts and staff may not be equipped to deal with this task. A much more effective way to recoup the monies owed is to engage the services of an experienced and reliable debt collection agency to do this for you.
At Daniels Silverman we put the reputation of our clients at the centre of all that we do, meaning that we will endeavour to do all that is possible to recover the money and protect your brand. With experience in collecting subscription debt across the UK and globally, you can be assured that we will approach the recovery with diligence and sensitivity, expertly and ethically working on your behalf. Our ethos and commitment to superior customer service means we are able to deliver these services regardless of the scale or size of the debt. With a tailor-made approach and consistent attention to detail in every case we handle, you will have the peace of mind to focus on your business while we do the rest.
If you have a problem with subscription-type debt, please get in touch
Why not give Daniels Silverman a try? We are fully GDPR compliant and our debt collection and credit control services are outstanding, and we have the experience to prove it. Find out more by visiting our website and starting a webchat, or give one of our business development team a call on 0800 953 3631 .