Are your parents ok about a months deposit/ fees in advance?

[lisbet]

I'm just working on my fees policy and know that I'm going to ask for a deposit to be retained until notice is given, and for fees to be paid in advance of care, but I'm wondering if asking for a deposit equal to a months fees, and for fees to be paid a month at a time is going to be out of reach for too many parents? Votes and comments very welcome :)

Gah - have messed up posting the poll - I meant it to have options for fees too. :blush: Ah, well if you could just vote yes or no so I get an idea of whether asking for monthly payments or weekly is realistic, that would be great :)

[oxfordshirecm]

I started off asking for upfront payment and Months deposit to be paid in advance but soon found it too much for parents- but I think that's because most if my parents have at least 2 children attending here so even a months childcare can add up. If something had to go I would say deposit and keep payments upfront. Maybe you could ask for two weeks deposit instead?

[mummyMia]

Mine have all been fine about fees in advance and most have been fine about a 4 week deposit. There was one mum who thought it was an awful lot (she was a student) so I let her pay a two week deposit instead.

[bunyip]

I know some CMs expect this, but personally think it's asking too much. I effect, it means paying 2 month's money is regularly gone from parents who are probably themselves being paid their wage a month in arrears.

I insist on payment in advance and am very strict about this, but I wouldn't expect a month's deposit as well. :)

[RuthJ]

Oh, I've voted yes, but think I may have misunderstood. My parents pay 4 weeks in advance but I wouldn't ask for a deposit in the same month as well. I have taken a deposit of two weeks when there was a gap between contract and start date, but why would you want it all in one go if they're paying for care in advance anyway? Am I being thick?! It's entirely probable!:laughing:

[nipper]

I ask for a months deposit and do payment in arrears. So far.....:rolleyes:

[bunyip]

I can see why. Without the deposit, the parents could do a flit bang on the last day of care. So the CM is left with no work, no income, and looking for an immediate start new mindee to fill the gap. That's why I wouldn't criticise any CM who got advance payment + deposit.
I just don't think it's very realistic to expect all parents in all locations to be able to afford that. If it's not achievable, then it's not practical.

[jillplum]

I havent ever charged a deposit or fees in advance. I dont think any cms round here do that. Ive never had a provlem with non payment or anything.

[RuthJ]

I can see why. Without the deposit, the parents could do a flit bang on the last day of care. So the CM is left with no work, no income, and looking for an immediate start new mindee to fill the gap. That's why I wouldn't criticise any CM who got advance payment + deposit.
I just don't think it's very realistic to expect all parents in all locations to be able to afford that. If it's not achievable, then it's not practical.

Ah, right I can see that now.

[lisbet]

Thanks you all for your advice, it's really helpful :) I've been reading so many threads etc about fees :confused: but what you've all said has helped me decide:

My neighbourhood is not affluent at all.

I won't ask for a deposit, but will make it clear that payment must always get to me before the child does (bank mess-up excepted.)

I'll give parents the choice of paying weekly or calendar monthly.

I'll accept bank transfer, cash, vouchers, cheques.

Will cross the retainer bridge if I come to it :rolleyes:

[FussyElmo]

Never taken a deposit - do ask for fees in advance up to them weekly or monthly

[lynncjt]

My policy states all fees in advance (weekly or monthly) and 4 weeks fees deposit held to end of contract.

In practice I accept 2 weeks deposit and if someone is really struggling this can be paid in instalments once care has started.

Having a deposit means I can be flexible if a parent has problems with Tax Credits or Voucher payments as I will let them go in debt to the amount of the deposit until it's sorted.

[lisbet]

Having a deposit means I can be flexible if a parent has problems with Tax Credits or Voucher payments as I will let them go in debt to the amount of the deposit until it's sorted.

Hmm...that is a good idea...Gah, I can take good care of children, but all this business stuff is a steep learning curve! (But NO I don't want an agency to run my provision for me! :rolleyes:)

[Stace]

I normally ask for a month deposit and month in advance. That way I know won't be paid late. If have a sibling just do one deposit. Also if didn't take a deposit they could get to end of the month and they could say not coming back anymore and nothing you could do about it. Is a difficult one as a lot of money to pay out.

[Tealady]

I would think twice about cheques. I personally don't acccept them.

I work in an affluent area but am treasurer for a Pre-school that takes the 10 at 2 funding. Some of these families pay by cheque if you don't pay them in within a day or two, they bounce and then getting the fees is quite tricky. You said you are not in an affluent area so depending on the actual demographic of the parents you can expect I would think twice.

[lisbet]

I would think twice about cheques. I personally don't acccept them.

I work in an affluent area but am treasurer for a Pre-school that takes the 10 at 2 funding. Some of these families pay by cheque if you don't pay them in within a day or two, they bounce and then getting the fees is quite tricky. You said you are not in an affluent area so depending on the actual demographic of the parents you can expect I would think twice.

Ok, thank you - I have been in two minds about cheques. Well, I am in two minds about everything to do with fees :rolleyes: so hearing everyone's experiences really helps. :)

[lynncjt]

I prefer direct to my bank account but will accept cash as at least I can spent it immediately - with a cheque you have to make a trip to the bank and then wait for it to clear! No Way!

[Mummits]

I take a deposit equal to a month's fees when the contract is entered into, which can typically be two, three or four months before the start date, and I make it clear that this will be forfeited if they change their mind and don't actually start as planned. They then pay monthly in advance, so the next payment would be due just before they start. The deposit is held to the end of the contract. I have gradually become more cautious financially speaking as a number of families have messed me about and cost me money. Nobody has objected though.

I am NOT going to make any exceptions to this in future. I took on a former mindee's cousin, and as I had had a great relationship with the first child's family and no money worries with them, thought I could trust the mum and did not insist on a deposit. She left me high and dry by leaving without notice right at the end of the month, and I couldn't really do anything about it (didn't want to put her sister in a difficult position as we are still friendly).