Late payment fee

[ceb99]

Hi,

What is a reasonable charge for late payments? Do you charge a fixed amount or daily amount??

I have one parent that consistently pays me late (late with everything though!) It's difficult as she works shifts, I'm paid into my bank but it has to be done each month as the figure is different every month.

I've put up with it for ages but enough is enough - they were on holiday on pay day this month we agreed it would be set up beforehand, payday came and went without payment or call/txt so now I have to wait til their back! I'm sure she'd have been onto work if her wages hadn't gone in!!!

Everyone else can manage to pay me on time so I don't see why this family can't!

If I could get an idea of what you all charge would be great.

Thank you xx

[AliceK]

Hi

I charge 10% of outstanding fees per day but I think this is high compared to others who charge around £5 per day. I have only had to implement it on 1 occasion for 2 sets of parents, both sets of parents complained to me about it, I stood my ground, it's written into my contracts, they had letters about it etc etc. Both sets paid it and haven't been late since. It makes me so mad. Why are we so worthless and unappreciated that they think they can pay us late. I need my money and I need it on time

xxx

[snufflepuff]

I've set mine at £10 per day including weekends and bank holidays. Never had to use it. I've had parents pay late but for the first offence i'll let them off but make sure they know that if they do it again I will be charging them.

[tashaleee]

I would have a meeting with the parent for a review as its obviously not what was agreed and explain to her that you need to be paid on time and you dont want to have to implement a late fee which will cost her more money. I would suggest that she pays you in cash the first working day of each week as she would know the hours for the week in advance, and that if she is late collecting then £x will be due as an extra (would make your life easier as less to calculate )

[marleymoo]

I've set mine at £10 per day including weekends and bank holidays. Never had to use it. I've had parents pay late but for the first offence i'll let them off but make sure they know that if they do it again I will be charging them.

mine's the same and i have used it

[Penny1959]

I don't have a late payment fee - as I think it suggests that late payment is ok - provided happy to pay fee.

Well it is not ok.

So all mine pay in advance and on time as per their contract.

One realised that a bank holiday was going to make her payment late and so brought a whole months fee in cash round - and then told me to keep the normal payment for the following momth.

I have a shift worker - she pays me a set fee in advance every month which covers x number of hours - any addition hors are paid in cash on the day.

Penny

[ceb99]

Thanks some good ideas there, it might be a good idea to work out a set figure each month and then charge her cash weekly for any extra, we're due to renew contracts so will make sure I add in a charge for late payment!

[marleymoo]

my parents know it is absolutely NOT okay to pay late. They must let me know it is going to be late so that i can transfer money from my current account to my business account so i don't incur charges (but if i did have bank charges i would pass it on to parents). i then charge the late fee per day too. i have only ever had to do it for one parent once in the full 7 years i have been childminding and that's probably because the thought of a late payment fee is a good deterrent. ALL of my parents pay in advance, i would never have it any other way. i would not take their children into my care until what is owed to me is paid and i would still charge for the hours and days i would not take the child due to parent non-payment. they would have breached the contract, not me. my parents are aware of this from the outset, it is on their contract. i have never had to implement it yet.