Payment Issues - What would you do?

[AliceK]

Hi
I have had mindee for 10mths now, she is lovely, parents are lovely, they have always been totally on board with things and seem to appreciate what I do. My payment terms are invoices to be paid by 1st of the month. Mum came to me when they signed to say as dad will be paying by vouchers and he doesn't get paid until the last working day of the month they can't get the voucher money to me by the 1st. I said ok no problem, if dad can authorise the vouchers as soon as he gets paid then I will allow an extra 3 / 4 days for payment to hit my bank. I give them an invoice every month and on all invoices it states the date in which I expect cleared payment. So this months invoice I have put on their invoice that cleared payment must be made by Mon 7th which is more than enough time if dad puts the vouchers through on Mon 31st. They use Sodexo. I use 3 other voucher companies but they are the only parents I have who use Sodexo. In the past the vouchers have not been put through and I have had to chase it, got told Sodexo had cocked up so basically payment to me was late. I was a little suspicious of this excuse but gave them the benefit of the doubt. Now this month, I check my Sodexo statement online yesterday (3rd) and no sign of anything having been paid so I text mum who says Dad has paid it but he will check. She comes back to me and says Sodexo has cocked up again. I call Sodexo myself and they say the payment was authorised and put through yesterday. Now I do not believe that Sodexo have messed up I think Dad just hadn't done it. Now that money is not going to be in my bank until probably Weds 9th now. I'm so mad. I NEED the money in my bank by the 1st but to help them out I have given them some grace which means for a few days I'm having to rob peter to pay paul but that was OK as long as the money hits when I expect it to. I hate being lied to also. So what do I do? I feel like saying to them that I will no longer be able to accept their vouchers if the voucher company can't be relied upon. I will be writing them a letter as soon as payment clears advising them that they have incurred £X of late payment but I want to make it very clear that this is unacceptable. It's really put me in a difficult situation financially now and I'm so mad at being lied to. They are great parents in every other respect but if they can't pay on time I'd rather not have them as I NEED my money from all parents to be ON TIME.
What would you do??

xxxxx

[Pipsqueak]

Do you have a late fees payment.... if you do implement - if you don't invent and implement ready for next month.
Bet they will stop resting on their laurels then when it starts costing them a bit extra

[AliceK]

Do you have a late fees payment.... if you do implement - if you don't invent and implement ready for next month.
Bet they will stop resting on their laurels then when it starts costing them a bit extra

Yes I do. I didn't charge any late fees last time but I will def be doing this time.
Thanks

xx

[sarah707]

For the future I think you need to look at your budget and work out how you can keep a float in your account every month to cover the direct debits that go out at the beginning of the month.

Either that or move some bigger dds to maybe the 2nd week of the month to give yourself some breathing space.

It might take a few months to build up enough money especially with Christmas round the corner but I find it invaluable for when mistakes happen and money isn't quite where I expect it to be.

Hope this helps

[rickysmiths]

I have Sodexo and have no problem. I do as you and accept payment a few days later but I have never had a problem. The parent can set it up to pay automatically as well so the only issue may be over a weekend or Bank holiday.

I would have a meeting with the parents and go through it with them and make it clear that you know it is not a problem with the Voucher Company, you could say that you have had them before(?) and that you phoned them this time to find that Dad had not authorised the payment until yesterday and this is not acceptable. I would give them next month to get it right making it clear that if the payment is late late payment fees will apply, agree the date it will be transfered and if this does not happen or there is a late payment again then you will no longer accept payment via this method and will expect the payment weekly in cash.

I would then put this in writing and get them to sign that they agree.

Also I agree with what Sarah has said

[LittleMissSparkles]

i agree, have a sit down chat with them and explain its not good enough you have bills etc to pay and expect paying on time as they do from their jobs. Im sorry I dont agree with having to move DD around to fit round parents who are paying late, but, i do think it is a good idea to give yourself less stress and worry about having the money in your account on time for them.

I would also start charging them late fees for anyhting later than the 3 extra days you agreed too xxx

[dusky777]

1 parent i have uses computershare vouchers never have a problem as soon as mum authorises they email me to say the transaction has been authorised and will be in my back shortly...normally the next day.

I have lovely parents but for some reason they think not paying me on time making excuses etc was ok...until i introduced late fees.

Im not good at confronting parents about things like this so i wrote a letter and alls been fine since

Good luck xx

[Mouse]

It sounds as if it's always going to be a problem getting payment by the 1st of the month, due to when dad actually gets paid.

Could you get them to pay an extra weeks money at the beginning of Dec, in cash? That would them give them up until the 8th for the voucher payment to clear. The voucher would cover the whole of Dec, but as they'd already paid a weeks money in cash, it would carry forward to cover the first week in January. Does that make sense? Each voucher payment at the beginning of the month would last you until the 2nd week of the following month.

You could then set the invoice date as the 1st of the month, but allow up to the 8th for it to clear, without you being short of money. Get them to set up an automatic payment, so they don't 'forget', then you should always get it on time. If for any reason it wasn't there by 8th, sting them with late fees to put them off doing it again.

You might be able to sell it to them that paying an extra weeks cash is going to cost them less that late fees every month.

[AliceK]

It sounds as if it's always going to be a problem getting payment by the 1st of the month, due to when dad actually gets paid.

Could you get them to pay an extra weeks money at the beginning of Dec, in cash? That would them give them up until the 8th for the voucher payment to clear. The voucher would cover the whole of Dec, but as they'd already paid a weeks money in cash, it would carry forward to cover the first week in January. Does that make sense? Each voucher payment at the beginning of the month would last you until the 2nd week of the following month.

You could then set the invoice date as the 1st of the month, but allow up to the 8th for it to clear, without you being short of money. Get them to set up an automatic payment, so they don't 'forget', then you should always get it on time. If for any reason it wasn't there by 8th, sting them with late fees to put them off doing it again.
You might be able to sell it to them that paying an extra weeks cash is going to cost them less that late fees every month.

The issue isn't that the payment isn't reaching me on the 1st, I agreed to give them a few extra days, that's fine. I look at when the last working day of the month is and then add on 4 more working days and that's when I expect cleared payment. IF dad puts payment through on time then there shouldn't ever be a problem. My issue is that dad doesn't put it through which in turn makes the payment even later and then they lie to me and tell me the voucher company has messed up when I know it's just that dad hasn't made the payment. I think it's a good idea about getting them to pay an extra week, I might suggest that. Whatever happens they are getting late payment fees applied for this month now.
Thanks
xx

[The Juggler]

i also allow regular voucher payments to clear a few days late due to parents receiving the money on last day of month. i expect this to be 3/4th of month latest. when there have been problems with this in the past though (either parents didn't action or voucher compnay has held up payment) I have politely asked that they pay in cash/bank transfer that month.

It is NOT your problem that they have problems their end. II would tell them that if they can't ensure payment of voucher money by 4th then you will expect a cash payment the next day. That should get dad to sort his act out.

[AliceK]

i also allow regular voucher payments to clear a few days late due to parents receiving the money on last day of month. i expect this to be 3/4th of month latest. when there have been problems with this in the past though (either parents didn't action or voucher compnay has held up payment) I have politely asked that they pay in cash/bank transfer that month.

It is NOT your problem that they have problems their end. II would tell them that if they can't ensure payment of voucher money by 4th then you will expect a cash payment the next day. That should get dad to sort his act out.

I have just spoken to Sodexo and they are adamant that dad didn't authorise the vouchers until yesterday and it was also after 2pm which is their cut off time for payments that day so effectively the vouchers haven't been paid out to me until today. I'm not happy . I have just printed off a statement from the voucher company which shows, for all the months, the date the payment was actioned by dad and this is the 3rd month it has been late. I will be asking mum for a meeting at pick-up today and showing her and telling her it is not on and that they will have a hefty late payment charge added on for this month now. I think I might suggest what you have said and if they cannot agree to that then I will refuse to accept voucher payments from them anymore. If they choose to look for alternative childcare then so be it. I deserve to be paid on time.

Thanks all for your replies

xxxxxx

[rickysmiths]

Dare I say I think you are being a bit harsh. Did you speak to them or apply late charges last time? I would ask for a meeting not just present it to them on the door stop tonight.

I would explain and give them a month with conditions as I said in my previous post. If you stop them using the vouchers you will probably loose them because it saves them quite a lot of money to use them. I am glad you have so much business that you can afford to loose them.

[AliceK]

Dare I say I think you are being a bit harsh. Did you speak to them or apply late charges last time? Yes I had to chase payment up with them. No I didn't charge any late payments on that occasion but it is written in my contracts that I will.

I would ask for a meeting not just present it to them on the door stop tonight.

I would explain and give them a month with conditions as I said in my previous post. If you stop them using the vouchers you will probably loose them because it saves them quite a lot of money to use them.
I am going to make it VERY clear that it is not acceptable and will make it very clear that if they are late again I will have no alternative but to stop accepting vouchers from them.

I am glad you have so much business that you can afford to loose them.

I don't really although I am always getting enquiries but I deserve to be paid on time and I am allowed to be upset when I'm not. All my other parents manage it and all in the past have too (although admitedly I have charged late fees on one occasion.

xxx

[Trouble]

[/COLOR]
I don't really although I am always getting enquiries but I deserve to be paid on time and I am allowed to be upset when I'm not. All my other parents manage it and all in the past have too (although admitedly I have charged late fees on one occasion.

xxx

you do deserve to be paid ontime they wouldnt ask to pay sainsburys late

i have a policy with vouchers that states if a voucher isnt paid on time the parent has to pay cash that day and the voucher will count to next months payment or as you say stop accepting them and say it is unfair to expect you to be paid later at the end of the day if they wants the benefits they bring they should pay them in on time END OF

[AliceK]

you do deserve to be paid ontime they wouldnt ask to pay sainsburys late

i have a policy with vouchers that states if a voucher isnt paid on time the parent has to pay cash that day and the voucher will count to next months payment or as you say stop accepting them and say it is unfair to expect you to be paid later at the end of the day if they wants the benefits they bring they should pay them in on time END OF

Thank you

xxxx

[blue bear]

I have never allowed extra days for vouchers to clear, I expect to be paid on the due date. In practice it usually means I get part cash part voucher the first month. Sodexo can be automatic I have two who do it this way and only manually adjusted if payment amount changes for some reason.

[AliceK]

I have never allowed extra days for vouchers to clear, I expect to be paid on the due date. In practice it usually means I get part cash part voucher the first month. Sodexo can be automatic I have two who do it this way and only manually adjusted if payment amount changes for some reason.

Yes this is the problem, the amount varies so much each month for this parent as I work to cover dads shifts which vary from month to month. Otherwise the automatic option would be great
Thanks

xxx

[blue bear]

Can't they set up an automatic payment of the minimum amount and just do a top up payment each month that gets paid 3 days later sort if thi g at least that way you'd have some of your money On time

[AliceK]

Can't they set up an automatic payment of the minimum amount and just do a top up payment each month that gets paid 3 days later sort if thi g at least that way you'd have some of your money On time

Now that is a good idea. They are contracted to a minimum number of days per month so they could set that amount up . Why didn't I think of that. Thanks
xxx

[Pipsqueak]

[QUOTE=rickysmiths;1006197 I am glad you have so much business that you can afford to loose them.[/QUOTE]

That is a bit harsh as well Ricky!

The one thing I have learned in this job - I need to be happy in what I am doing instead of wondering if and when I am going to be paid etc etc.

I would rather be happy and skint than constantly chasing payment with people who obviously have no respect for me as a working parent or a business or professioanl

Alice deserves to be paid in a timely fashion instead of fobbed off.