Late Payments

[wahmof3]

Curious on how to address late payment issue. My DCP are contracted to pay on the last day their child is in attendance for the week. Which is typically Friday. I have 1 DCK here 3 days per week. I had to switch dck schedule starting this week from M-W-F to T-W-Th. I am very grateful that I was able to do this.

So DCM always pays me cash and didn't pay me yesterday. Grandma usually picks up & said "**** will be over to pay you." Haven't heard from her yet :confused:

Last week I had closed Th & F for Easter & she brought her fee over Monday this week along with $20 in late fee's. I don't think the late fee really bothered her.

I'm afraid I see a pattern here. I don't like having to wait around for payment. I have another DCP who is doing this as well. Hasn't lately but was nothing for her to text and ask if payment can be brought over- during my family time.

So should I address the late payments in my April newsletter? Do I address it individually? Both?

I am thinking about going to a pre-pay as well. Not sure how to incorporate it yet.

I apologize, I know that fee questions are always asked
Thanks!

[Blackcat31]

Absolutely address the issue to each individual family and in person or on the phone. I would also then reiterate the policies you have in place for late fees in the next newletter as well.

I would also start implementing a 3 stikes you are out rule. I make the late fee higher and higher each time too since I have had my share of parents who are perfectly willing to simply pay the late fee and then continue being late.

It shouldn't be your problem as to when a family does or does not attend. Set a time and date for ALL payments to be due and then stick to it. Don't make exceptions.

As far as starting pre-pay, I would do that ASAP, as that solves ALOT of issues in the payment department.

I went prepay right before a week vacation so parents could adjust their payments accordingly but I have also seen providers simply have the parents pay the normal amounts plus half so that every family ends up pre-paying with in 30 days time.

[karen]

Ugh I hate confrontations about payments! but per my contract it states that the payment is due the Monday before services are provided. I do give breaks to people that only get paid every two weeks. It just depends on the situation. However boy did my backbone grow this week..
I have one mom who is always coming up with excuses and the tears start flowing about why she can't pay me again.... and if I could wait. This has been going on for a few months well yesterday was it for me I told her that my mortgage payment is due today and they don't want to hear why I can't pay them. I also told her I had three families waiting to sign up here and she needed to think about that.
She went to her car grabbed her checkbook and paid me in full!
Sometimes it takes getting tough to get the message across.
Good luck to you! happyface