Collections & Overdue Accounts

Overview

When automatic payment retries are exhausted and a member's invoice remains unpaid, the account moves into GymPoint's collections pipeline. Collections provides a structured workflow for recovering overdue payments through escalating communication sequences, manual outreach, and ultimately writing off bad debt when recovery is not possible.

Collections Pipeline Overview

The collections pipeline is a staged workflow that tracks each overdue account from the initial overdue status through resolution. You can view the pipeline at Billing > Collections.

Pipeline Stages

• Newly Overdue — The invoice has just entered collections after all automatic retries failed. The member has been notified but no collections-specific action has been taken yet.
• First Contact — An initial collections email or SMS has been sent to the member requesting payment.
• Follow-Up — Additional follow-up messages have been sent. The member has been contacted multiple times.
• Final Notice — A final warning has been sent indicating that the account will be suspended or written off if payment is not received.
• Resolved — The overdue balance has been paid or otherwise settled.
• Written Off — The debt has been deemed uncollectable and removed from active collections.

Automatic Collections

GymPoint can run collections sequences automatically based on rules you configure.

Setting Up Automatic Collections

1. Go to Settings > Billing.
2. Toggle Automatic Collections on.
3. Configure the communication sequence:
   • Day 1 — First contact email is sent automatically when an invoice enters collections.
   • Day 7 — Follow-up email or SMS.
   • Day 14 — Second follow-up with stronger language.
   • Day 21 — Final notice before write-off or suspension.
4. Customize the timing and channels (email, SMS, or both) for each step.
5. Click Save.

Each automated message uses templates that you can customize in Marketing > Communications on the Templates tab. Templates support {{variable}} placeholders for personalization (member name, amount owed, due date, etc.).

Manual Collections

For a more hands-on approach, or for accounts that need personal attention:

1. Go to Billing > Collections.
2. Click on an overdue account.
3. View the member's contact information, amount owed, and communication history.
4. Choose an action:
   • Send Email — Send a custom or templated collections email.
   • Send SMS — Send a text message to the member's phone.
   • Log Call — Record notes from a phone call with the member.
   • Retry Payment — Attempt to charge the current payment method on file.
   • Move Stage — Manually advance or move the account to a different pipeline stage.

Communication Sequences

Effective collections messaging escalates in urgency:

First Contact

A friendly reminder that the payment was missed. Include a direct link for the member to update their payment method and settle the balance.

Follow-Up

A firmer reminder emphasizing the overdue status. Mention the specific amount and how many days it has been past due. Offer to help if there is a billing issue.

Final Notice

A clear statement that the membership will be suspended or the account written off if payment is not received by a specific date. This is the last communication before action is taken.

Writing Off Bad Debt

When an account is truly uncollectable:

1. Open the overdue account in the Collections pipeline.
2. Click Write Off.
3. Enter a reason for the write-off.
4. Confirm the action.

Writing off an invoice removes it from active collections and updates the invoice status to Written Off. The member's membership is typically canceled as part of this process. The write-off is recorded for accounting purposes and appears in your financial reports.

Collections Reporting

View collections performance under Billing > Collections:

• Recovery rate — Percentage of overdue invoices that were eventually paid.
• Average days to resolve — How long overdue accounts typically take to settle.
• Write-off total — Total value of written-off invoices for the period.
• Stage breakdown — How many accounts are at each pipeline stage.

Tips

• Act quickly on overdue accounts. The longer a debt ages, the less likely it is to be recovered.
• Use a mix of email and SMS to increase the chance that members see your messages.
• Keep your tone professional but firm. Most members with overdue accounts are not trying to avoid payment — they simply need a reminder or help updating their card.
• Consider enabling Smart Dunning (Pulse AI) for AI-optimized collections timing and messaging. See Smart Dunning: AI-Powered Collections.