Late payment fee??

[Langaleah]

So, every month I am chasing parents for payments. It seems to be the same ones every month. Iv written up a late payment fee policy & want to give it out. It states that unless I am informed before payments are due a late payment fee of £10 per day will be charged. (So if they don't tell me it will be late) I'm very felxible as to when payments are made during the month but ask that everyone has paid by the last day of each month (I have bill's myself that go out the first few days of each month so I need to cover this)
Anyways, but husband doesn't think I should give it out. He is worried parents will leave due to the fee, and as we are currently buying a new house he is worried it will affect this.

What would or have you done in this situation?
TIA x

[chris goodyear]

It's very hard isn't it to ask for our money? We shouldn't have to in the first place, I'm sure all our parents don't have to ask their employers for theirs and second it just feels wrong to ask! All of my parents are great at paying on time bar one and mum (who does the payments) keeps saying she has set up a direct debit but I know she hasn't because the only time I get my fees is when I remind dad about 2 weeks after it was due. It used to be fine when I invoiced them every month but at the beginning of this year we changed it to 12 equal monthly payments (can't remember now why we did that) and ever since it's been a nightmare to get paid. All I can say is if you don't feel right implementing the late fee just give a gentle reminder every day and hopefully they will get the message.

[BallyH]

I also have to chase parents! I've also had the 'one' who's apparently set up the standing order etc etc. I just keep reminding them. I use to say 'oh that's ok' when they appologised for being late but now I keep a straight face! It has got better but still one parent to chase every month.

Maybe you could send out an email saying you've noticed that payments are slipping and 'are aware' that other childminders/nurseries charge £10 plus a day for late payments and that you do not want to, at this stage, go down that route. So could everyine please pay on time etc.

I've never charged a late fee. If you say you are going to do it you will have to follow it through. And I just couldn't. I'm afraid this is part of being self employed and there has been threads on this before and there will be again. Best of luck.

[AliceK]

Maybe I'm too old and miserable but I keep reading about childminders frightened to speak up and get firm when parents don't stick to their side of the contract. Parents need to drop off and pick up their children ON TIME and pay us ON TIME. It's really not hard. I have no qualms about getting strict about those 2 things. I charge 10% of outstanding payment per day and have had to charge it on 2 occasions to two different parents and yes one parent did get stroppy over it but she still paid it and neither of them left me. And how are they going to bad mouth you, what for?? "My childminder is terrible she expects me to pick my children up on time and me to pay her on time. "
Charge your late payment fees. It's like giving a threat of a consequence to a child and then when they don't do as asked you don't follow through with the consequence, what's the child learning from that???

xxxx

[greenfaerie]

It is tricky raising the subject of money with parents, I know. I've found it handy to have everything down in my policies and just refer to them as if they're not negotiable, almost as if it's out of my hands. I have a fees policy that is specific about a late payment fee, and it's on my contracts. If I had to charge it, I'd apologize and refer to what they'd signed. I've been up front with my parents about being completely professional with paperwork and a rule follower. :S

Could you not phrase this like you've reviewed and updated all of your policies and need them to be resigned and redated. That way it's not just the late payment fee info you'll be giving them? I find it sounds less personal when it's a bunch of updates and all parents have to sign. :)

Also I remember seeing a post on here about adding the late payment fee on the monthly invoice and then immediately refunding it on the same invoice with a note next to it saying "first time late payment allowance" or something like that. Its a fantastic idea and it's a subtle way of letting parents know that they next time they will be charged. :)

[JCrakers]

Give out the letters saying if payment is late a late fee will be added to next bill. I wouldn't even put in there 'if you tell me'

I had a particular family who were late paying and Mums excuse was "I keep forgetting..haha"

I felt like saying.. would you 'find it funny' if I FORGOT to pick up your dd from school? I don't forget because your dd is my main priority...how come I'm not yours? !!!!

[AliceK]

Give out the letters saying if payment is late a late fee will be added to next bill. I wouldn't even put in there 'if you tell me'

I had a particular family who were late paying and Mums excuse was "I keep forgetting..haha"

I felt like saying.. would you 'find it funny' if I FORGOT to pick up your dd from school? I don't forget because your dd is my main priority...how come I'm not yours? !!!!

Good job her boss doesn't "keep forgetting" to pay her isn't it :angry:

xx

[Simona]

The issue of late payments is being focussed on many angles...parents pay us late and providers also are being paid late by the LAs when it comes to funding!!...a vicious circle.

It is a hot topic at the moment.

Be careful about adding a 'late payment' fee....check with your insurance.

If a parent is constantly late the only thing to do is review the contract and warn parents that 'late payment' may mean 'no care'

The vast majority of parents are paid on the same day each month...it is a question of being organised and adhere to the contract...don't be shy about explaining that a small business CANNOT sustain itself without prompt settling of the fees!

Good luck and be assertive!