Do you charge a deposit?

[claire250182]

I registered in nov and I have 2 children starting in April. I have stated that a deposit of one months fees is to be paid, which will then get deducted from their last months fees (security for myself in case they don't pay) then fees to be paid in advance on top. I am just wondering if the majority of you charge a deposit? I had a lady come round last week with her little girl and I really thought it was a dead cert, by the way she was talking. She has just text to say she has signed up with another CM as she doesn't charge a deposit. I guess you win some and lose some. I am just wondering if I am doing the right thing really? Thanks

[rickysmiths]

I do because I have had my fingers burnt over non payment.

I am quite hard I expect four weeks fees on signing the Contract and to be paid in advance. I now state that if they reduce their hours or leave in the first six months they loose their deposit.I have done this because last year I had a parent who came to me and signed up for five days a week, within a month a nursery had a place for them (apparently they were on the waiting list :rolleyes:) They reduced by a day a week and within 4 months they had gone. I had turned down someone else.

I have had exactly the same thing happen since Christmas. It would seem they had no intention of using me long term the child was already at nursery 2 days a week mum was offered a plum job and they needed childcare the nursery didn't have a place. They are leaving at the end of the month but I think they have forgotten they won't be getting their deposit back! Still at least they signed my fees policy where it is all clearly detailed.

[EmmaReed84]

Most definitely charge a deposit which is then held and attributed to their final invoice.

[Gracie's mamma]

i ASK FOR 2 WEEKS

[jane5]

I followed RIckys advise when I first registered :thumbsup: and tbh I would rather not take the child on than take a child without a deposit and fees up front and not get paid for working or have them leave without notice.
I have had one mum do a flit from work so she stopped bringing lo to me.
We are still on good terms though because she still had 2 weeks fees already paid and a 4 week deposit. I wouldn't have been paid if I didn't take a deposit and fees in advance.

[mrs robbie williams]

yes i do now, didnt to start with but got fingers burnt aswell, i now charge a 4 week deposit upon signing paperwork and fees are payable in advance :thumbsup:

[Rio123]

I take a 4 week deposit and use it against final months invoice. She may have thought if was a non returnable deposit to hold the place??

[The Juggler]

daft of her not to discuss it with you and come to a compromise.

personally i charge a deposit but offset this against first months fees. If you want to hold the deposit against final invoice and parents might not be able to afford 2 months upfront I would

get a months deposit before starting
once they start offset this deposit money against first months fees, then accumlate a months deposit for final invoice by asking parent to pay a bit more each month in first 6 months.

would that work for you? I know I certainly couldn't have afforded to pay 2 months upfront when returning to work after mat leave :panic:

[miffy]

I always take a month's deposit but this is offset against the first month's fees - I'm always paid monthly in advance so don't feel the need to hold a deposit until the end of the contract BUT I do think asking for a deposit sorts out whether parents really want the place or not :thumbsup:

Miffy xx

[Tatjana]

I've never asked for a deposit as so far all of mine have wanted to start within days (if not the next day lol!) of visiting, BUT I always take payment in advance.

Maybe if I ever got someone who wanted care a bit further into the future I would be asking for a deposit, but hasn't come up yet.

[TinyTinker]

I never used to and everyone who came signed - and started....

Now I mention deposit - they always go elsewhere - so I am now in two minds - and I think at the moment I would rather risk them leaving without paying than not having had them at all!

Some parents are just going back to work and until they start getting paid again are not in the financial position to find a deposit and then a months fees soon after:o

[winstonian]

For under 5s I take a months deposit which is non refundable and is used for the first months fees from then on I'm paid in advance. I offer as many free settling in sessions as they want so feel that the deposit covers these if they decide not to start.
That said I've just taken on a little boy and forgot:blush: all about the deposit but he has started straight away and not had any settling ins

[jumping j]

So far I've always had lo's start straight away, If they wanted a place holding I think I'd be asking for a deposit or retainer or they risk loosing the place if somone comes along sooner

[miffy]

For 1 week :panic:

Not quite sure what you mean but the original poster asked for a month's deposit to be held until the contract finished when it would be used to offset the final month's fees - this is common practice and protects the childminder if parents leave suddenly as this wil cover the notice period.

Miffy xx

[Kittycat]

If a parent comes to me & wants to start my service in a few weeks, i ask for a £50 deposit to secure the place.
Then once started i have a fees in advance for the mth ahead
due normally the 1st, but if they start the middle of the mth i bill them untill the end of the current mth

[Carol M]

I always take a month's deposit but this is offset against the first month's fees - I'm always paid monthly in advance so don't feel the need to hold a deposit until the end of the contract BUT I do think asking for a deposit sorts out whether parents really want the place or not :thumbsup:

Miffy xx

I agree with Miffy. I used to ask for a retainer in the grand old days when we were busy but now I ask for 4 weeks as a deposit which will be used as the first 4 weeks fees.
I have just done this for a start date in June.
Carol x

[Nick22]

I think a deposit is great, however we have a few parents who have told us they have borrowed the first weeks/months money to get them started until the salary and tax credits catch up. It can be very difficult for young parents to find the fees if it's a first job or return after maternity leave. In principle we ask but we don't enforce it very strongly and you just have to go on your gut feelings.

[pinkellifun]

I'm still pre-reg and am sorting out my policies and fees, etc. This is what I have put in my policy regarding a deposit:

A deposit is required at the time of signing this contract to secure the place for your child and is non-refundable if you decide not to take the place. This equates to 4 week’s contracted hours. This deposit will be held until which time the Registered Childminders services are no longer required, notice has been served and carried out and full payment has been received for the hours worked by the Registered Childminder. If there are fees outstanding, the deposit will be used towards paying for this and further attempts will be made to obtain funds for the remaining outstanding amount. If changes are made to this contract and hours are increased, you will be required to pay the extra deposit to ensure it equates to 4 week’s contracted hours. For example, if you were contracted for 2 days a week and increased to 3 days a week, an extra 4 days of deposit is required. You will be reminded of this at the time of signing your new contracted hours.

Do you think this is fair or should I change it? Reading what others have wrote I think about the reverse positions and think that I wouldn't be able to afford 4 weeks deposit then more money a week or two later.:eek:

It makes me think I should maybe reduce it to 2 weeks and keep it til the end or 4 weeks and use it against the first month? Oh decisions, decisions!

Any advice?

[CH1957]

I dont charge a deposit mainly because all the children I have started immediately. Im probably being too trusting but I feel if they havent started work yet they probably wont have the money for deposit and 1st months fees upfront.
I may change my mind once Ive been burned!! :D

[Wendybird]

I have 4 weeks deposit to be applied to final bill in my contract, but always say verbally that I know it is a lot of money as I also charge in advance, so am happy to work out a payment plan. The one who took me up on that never paid on time, etc and I gave notice. All the others have paid the deposit without quibble. I do think it depends on what is normal in your area though - if no one else is charging one I can see that it may cause parents to go elsewhere. I am quite firm about money to start with now and am really glad for it, I've had a couple of parents push it a bit recently and I was able to refer them back to our discussion when they started as well as policies / contracts.

[Jelly Baby]

Hi can anyone help please.
I have a mum round tommorow morning looking at a space which i would really love to fill but its not till November. She has said a deposit is fine BUT i have never taken one before so have decided on 2 weeks which will be £240 knocked off the first 2 weeks of her starting (if she starts!) So how do you take for this, do i just give a receipt or fill something in on the contract?

Thanks

[rickysmiths]

I take FOUR weeks fees Deposit and keep it until the END of the contract, when it covers the 4 weeks notice period. I make it clear on the contract that if they don't take up the place they loose the Deposit.

I also have a fees policy and make it clear that they loose the deposit if they leave within the first six months (I got sick of parents using me as a stop gap while they waited for nursery places) or if they reduce hours they loose that % of the deposit.

I am also paid on the 1st of the month in advance.

I know this sounds harsh, but I had my fingers burned with a family leaving owing money and I vowed it would not happen again. Doing things this way allows a margin for none or late payments to be resolved or for care to stop before any debt is built up.

I also have in my fees policy that if payment is late that a £5 per day late fee is added and if payment is one working wee late childcare will cease until all fees are paid up to date. If this doesn't happen with in 4 weeks the Contract will end.