Do you charge in advance/in arrears?

[stargazer1]

Was having a discussion yesterday with a mum who will be using me as soon as I am registered. She asked how I will be charging. I said that I would prefer weekly, payment due at the start of the week for the contracted hours, an extra hours will be added on to the next weeks invoice. She said that the childminder she has previously been using charge monthly in arrears, so they only paid for what they used. I would rather not get into a situation where someone owes me hundreds of pounds and cant pay, as I see it if we have contracted hours they should be paid for in advance so the care is covered. What do you all do?

[jumping j]

I charge in arrears, but some pay weekly and some monthly I charge for booked hours no matter what so even if the children are ill they still pay, however I have 2 families that are ad hoc care so they pay a slightly higher rate but only pay for the hours they use.
I send out an invoice on the last day of each month and they have 10 days to pay, 7 if paying by cheque.
If they are late I charge 5% of the total bill, after introducing this I've never had a late payment!!! Also in my policies it says that I will not care for a child if I have not recieved payment
So far I've had no problem

[rachelle]

I would explain that I don't do payg except for ad hoc care and that she is paying for the space being kept for the contracted hours. I charge either weekly or monthly in advance - I give parents the choice but it's always in advance. Any adjustments (if I'm sick or if they do extra hours) are added or taken from the next invoice.

[flowerpots]

I always charge in advance. contracted hours are paid for regardless of whether they attend or not and then extra hours are paid for before i actually do them.

[onceinabluemoon]

We had it drummed into us on our ICP (the course we had to do before we started) to always take payment in advance, never arrears and to make it clear to parents from the start that you operate a non-payment = no care policy and to actually stick to it.

It doesn't matter what this lady's last childminder did, you are a completely different business and you charge how you think is right.

Don't use words such as prefer, and feel, or believe when you are dealing with parents, this are 'weak' words and give a parent chance to say no or suggest you are unsure of yourself. instead say, "I charge weekly in advance but if you find it easier to manage your finances monthly, I am happy to be paid monthly in advance". When they come back with my last childminder did xyz, just seem surprised and say "really, well that is surprising, it's the norm to do ABC which is what I do". Be polite but firm.

[caz3007]

Advance every time....ooohh I did do one in arrears and that was cos I knew her and she paid fine. But wouldnt do it again as it was a worry x

[stargazer1]

Thanks all xxx

[marnieb]

I would explain that I don't do payg except for ad hoc care and that she is paying for the space being kept for the contracted hours. I charge either weekly or monthly in advance - I give parents the choice but it's always in advance. Any adjustments (if I'm sick or if they do extra hours) are added or taken from the next invoice.

I do exactly the same!!!!!

I know nurseries and other cm's who have cared for children and they have then done a runner and not paid, this is why I always get paid in advance.

[ziggy]

I charge weekly/monthly in arrears, luckily i have excellent parents and it has never been a problem

[jelly15]

I state in contract a week in advance but no one does . They all pay me during the current week though. One parent will pay me about three weeks in advance then fall behind a couple of week, then they pay the balance and three weeks in advance again .

[sonia ann]

I have always charged monthly in arrears too and never had a problem at all but I guess some will say I have just been lucky so far

[loocyloo]

i charge in advance for the upcoming month. then i add any extras or take off any days i was unavailable to the next months invoice. i have one mum who pays each morning for the day ahead (just a few hours once a week), and that works ,but i wouldn't do it for everyone. i'd never know where i was!

[The Juggler]

Was having a discussion yesterday with a mum who will be using me as soon as I am registered. She asked how I will be charging. I said that I would prefer weekly, payment due at the start of the week for the contracted hours, an extra hours will be added on to the next weeks invoice. She said that the childminder she has previously been using charge monthly in arrears, so they only paid for what they used. I would rather not get into a situation where someone owes me hundreds of pounds and cant pay, as I see it if we have contracted hours they should be paid for in advance so the care is covered. What do you all do?

then use that as your reason for charging in advance - invent an errant parent from the past Tell her you are sorry but the hours you will be charging for are those contracted plus any additional hours (sounds like her old CM just let her pay for what she needed changing every month )

She is lucky you don't charge a month in advance. The only concession I've offered parents who are struggling is 2 weeks in advance on 1st of month and 2weeks on 15th.

good luck

[Mollymop]

I do a bit of both but I know one thing I wouldn't never do - that is work in arrears for monthly work! All monthly payments have to be in advance or like you said, you could end up with a non-payer who owes you months worth of money.

I have 1 full timer who pays me weekly on a friday in arrears

2 school holiday families who pay me weekly in arrears

1 part timer who pays me monthly in advance.

I don't mind working weekly in arrears.

[cupcake22]

All my parents pay weekly on the !st working day of the week. They all know that if money is not brought my policy is no fee no childcare unless there is a very good reason. If the dont bring it i ask for it. They wouldnt like it if their salary was paid into there bank late. I have bills to pay too.


Cupcake22

[Hayley102]

I get paid monthly in advance. Charge for contracted hours. Add alterations to following months invoice. I hate talking money as I always feel awkward but I would recommend you start as you mean to go on.

[Tealady]

I get paid weekly in arrears, however I take four weeks deposit so if they default I have in my contract that I can terminate without notice and retain this money in leiu of outstanding fees and notice. This gets refunded at the end of the contract once their account is up to date.

[rickysmiths]

I am paid monthly in advance by choice. If they pay weekly they pay on the first day of care in the week that they use.

I take a four weeks fees deposit when the contract is signed and keep it until the end of the contract. If they reduce their hours or leave in the first six months they forfit that portion of or all the deposit. We have had a spate of parents in the area use cms as a waiting room for nursery places, not tell us and then leave after 2 or 3 months or reduce hours as nursery spaces became available.

[silvermist]

We had it drummed into us on our ICP (the course we had to do before we started) to always take payment in advance, never arrears and to make it clear to parents from the start that you operate a non-payment = no care policy and to actually stick to it.

It doesn't matter what this lady's last childminder did, you are a completely different business and you charge how you think is right.

Don't use words such as prefer, and feel, or believe when you are dealing with parents, this are 'weak' words and give a parent chance to say no or suggest you are unsure of yourself. instead say, "I charge weekly in advance but if you find it easier to manage your finances monthly, I am happy to be paid monthly in advance". When they come back with my last childminder did xyz, just seem surprised and say "really, well that is surprising, it's the norm to do ABC which is what I do". Be polite but firm.

Me too, I ask for payment monthly in advance and have had no issues with that so far. x

[stargazer1]

You are all so helpful, thank you. I dont mind whether they pay me weekly or monthly, whichever suits them as some get paid weekly and some monthly, as long as it is in advance. You have all helped me to realise that I am not being unreasonable! I need to toughen up a bit I think!!