late charges???

**naomiesian** · 30-05-2010, 11:18 AM

I have stated in my contracts and in my polices and procedures booklet (every parent has a copy) that I will charge £5.00 per day for late fees, all of the parents bar one pay me at the end of each week so no problems, but one parent pays me monthly, this was agreed at start of the contract and I send an invoice stating fees to be paid on the first of the month, I only care for the child during term time so if the beginning of the month falls on school holidays (like now) I don't receive the cheque until the child goes back to school, In April I didn`t receive cheque until the 19th and this month I wont receive the cheque until Tues 11th when the children go back to school and then it will take 5 working days to clear so I wont actually see the money until around the 18th of the month.. So far I haven't charged a late fee to this parent, but I feel that I should as she only lives 5 mins down the road and could easily walk up at post the cheque through the letter box on at least the day its due.. Or should I go to her house and ask for it?
What would you do?
Many thanks Naomiesian xxx

Pipsqueak · 30-05-2010, 11:41 AM

i would give the parents a quick reminder call and ask for them to drop it off to you, then i would be arranging a meeting with them and remind them about prompt payment, ie payment by xx date so that it has cleared in the bank by xx date. just explain that you need it in the bank to cover your outgoings and any further late payments will not incur your £xx daily charge. put it all in writing as well for instance:

I will invoice you on xx date
i expect payment to me by xx date at the latest so it can clear in the bank by the end of the month.

or just put it all on the invoice in big red capital letters!

if they do not adhere to this arrangement after that then start applying late charges

Why not ask them to set up a standing order instead.

**naomiesian** · 30-05-2010, 11:52 AM

Thanks for the good advice hun, I have spoken to the parent before about setting up a standing order but her response was `I have tried before and my bank wouldn`t let me` I will send a written reminder to the parent and state that invoices will be sent out two weeks before payment is due to allow enough time for cheque to be received and cleared by the first of each month..
Naomiesian xx

**sweets** · 30-05-2010, 11:56 AM

i get paid monthly by one parent and if school hols are coming up i ask her for a post dated cheque before they break up.

**naomiesian** · 30-05-2010, 12:06 PM

Originally Posted by sweets

i get paid monthly by one parent and if school hols are coming up i ask her for a post dated cheque before they break up.

That's a good idea, especially with the 6-7 weeks holidays rapidly approaching..

**Minstrel** · 30-05-2010, 01:12 PM

I agree.

I always put the due date of the first of the month and they know now that if i don't get it before they leave for the hols then i expect them to drop it to me in their own time.

I have one that paid on thursday by cheque (which obviously won't clear by tues 1st) but i don't mind this too much as at least i have it. The other pays by cash and has said she will drop it to me before tuesday and is usually pretty good at remembering.

Its all about training them to realise your have a payment date because you expect it and need it on that date.

**naomiesian** · 01-06-2010, 10:47 AM

Thanks for the advice

Have written a parents update regarding fees... How does this sound? Sorry its a bit long!!!!

Dear parent,
As from Monday 5th July 2010 all payments for childminding fees must be paid on the day that they are due regardless of term time or school holidays.
If paying weekly, please ensure that payments are made at the end of each week (or on the last day of the week your child attends). This includes the half rate agreed fee during school holidays if your child does not attend.
If paying monthly in advance (by prior agreement only) an invoice will now be sent 2 weeks before payment is due, this giving ample time for payment to be received on the day that it is due.
If payment is in the form of cheque, childcare vouchers or bank transfer please be aware that these methods take up to 5 working days to clear as available funds so please allow enough time for funds to clear on the date that the payment is due.
As from the above date, late payment of fees will now incur a charge of £5.00 per day (no exceptions made).
Any such charge will appear on your next invoice as late charges.
I hope that this does not cause any problems and ask that should you have a query regarding this decision you contact me as soon as possible so that it can be discussed.

Yours Sincerely

**The Juggler** · 01-06-2010, 12:31 PM

sounds good. only thing I would say is with the cheques, I would state specifically that you need them 6 working days before the end of the previous month to ensure that you have time to bank and clear funds for 1st of month.

**naomiesian** · 01-06-2010, 03:41 PM

Originally Posted by The Juggler

sounds good. only thing I would say is with the cheques, I would state specifically that you need them 6 working days before the end of the previous month to ensure that you have time to bank and clear funds for 1st of month.

Brilliant advice thank you hun xxx
Have now added
If paying by cheque, cheques must be given at least 6 days before payment is due to allow enough time for me to bank and cheque to clear as funds on the payment due date.

Just going to deliver letter now as today is payday and surprise surprise no payment, fingers crossed they will be at home and I can have a little chat

**Goatgirl** · 01-06-2010, 03:46 PM

Well done for sticking up for yourself: Good luck

**The Juggler** · 02-06-2010, 07:24 AM

Originally Posted by naomiesian

Brilliant advice thank you hun xxx
Have now added
If paying by cheque, cheques must be given at least 6 days before payment is due to allow enough time for me to bank and cheque to clear as funds on the payment due date.

Just going to deliver letter now as today is payday and surprise surprise no payment, fingers crossed they will be at home and I can have a little chat

just to add if it happens again this month I'd drop them another line and say unless payment can be made as per payment date, then you will have no choice but to accept payments by standing order only to ensure that payments are made on time every month. Hope this newsletter works for you though

**naomiesian** · 02-06-2010, 04:22 PM

It worked!!!!! I delivered the update yesterday, had to post it as nobody was home. Parent came around today with a cheque and an apology and said that in future she will pay me allowing enough time for cheque to clear before the day its due.
I'm very happy at the moment but have a feeling that when next payment is due the same thing will happen again!! But I'm going to be firm and stand my ground and rather than send a reminder I will just total up the late charges and add them to her bill...
Thanks for all the help and advice
Naomiesian xxxxxx