Late fees

[Southernmama]

What are you late fees for late payment? When I started my child care I put $5 per day it is late and if it's not paid by Monday morning then no care will be given until it is. Some of my parents **** at paying on time and I feel like the $5 per day is like a laugh in my face. What would be a good steep yet reasonable late fee that hopefully will make them think twice about not paying on time. I'm also thinking about adding in my contract that if they are late 3 times they will be given a warning if after that they are late for a 4th time termination of care will be given for continuous late payments. I'm just so sick of stressing each Friday wondering if I'll be paid on time and I don't want you coming over Saturday to drop it off as it's MY day without daycare!!! Ugh
I don't won't to hear anymore about how you forgot to bring your fee.
Pay on time or get out!

[texascare]

I have in my contract payment is due at time of drop off or if the child is absent, then by 9 am that Friday so I can go to the bank at one time with all the checks instead of multiple times. Also if my parents forget it is due in cash when they bring it back. I would do 15.00 per day? you could do a new policy and have all parents sign it that states payment is due at time of drop off if not then late fee applies and it needs to be in cash. Say you have tried to be nice about it but things have come to this and you will be enforcing late fees. After 3 late fees child is terminated.

[Blackcat31]

$10 per calendar day for first late payment. NO services until paid in full. Will only charge a late fee for 7 consecutive days before loss of space/enrollment.

$20 per calendar day for second late payment. NO services until paid in full. Will only charge a late fee for 4 consecutive days before loss of space/enrollment.

$30 per calendar day for third late payment. Payment must be made on Monday morning IN FULL or terminated.

[Southernmama]

$10 per calendar day for first late payment. NO services until paid in full. Will only charge a late fee for 7 consecutive days before loss of space/enrollment.

$20 per calendar day for second late payment. NO services until paid in full. Will only charge a late fee for 4 consecutive days before loss of space/enrollment.

$30 per calendar day for third late payment. Payment must be made on Monday morning IN FULL or terminated.

Oh, I like that. Also is it ok to update this to my contract and have them sign it now even though our "new year" doesn't officially start till April (when I started my child care.)? Also I watch a sibling set (2 brothers) and their parents are some of my late payers. Actually what steamed this post. Should I charge them the late fee per child or per family? Also, should I hand out Payment reminders at thursday pick up and no more reminders? I will probably keep payment due on Friday at pick up in case parent doesn't get their check until they are at work etc. I know that was the case when I worked but I still wasnt ever late paying at pick up. One last thing, how would you let parents know you will be updating the contract or just give it to them to read over and return with signatures?

[Blackcat31]

Oh, I like that. Also is it ok to update this to my contract and have them sign it now even though our "new year" doesn't officially start till April (when I started my child care.)?

Absolutely!! I would send a short note attached to the policy change saying "Due to some recent issues with timely payments I am now implementing the following late fee policy...."

Also I watch a sibling set (2 brothers) and their parents are some of my late payers. Actually what steamed this post. Should I charge them the late fee per child or per family?

My late fee is per payment so if they pay together for both kids, then one charge. If they pay each child with a separate check, then I would charge per child. Most likely it is per payment or per family and not EACH child.

Also, should I hand out Payment reminders at thursday pick up and no more reminders?

If your payments are normally always due on Fridays, I see no reason to remind people that it is once again Friday and payment is due. I only send reminders when payment is due earlier or later than normal because of a holiday or if payment schedules vary. ALL my payments are due on Fridays so I don't remind anyone.

I will probably keep payment due on Friday at pick up in case parent doesn't get their check until they are at work etc. I know that was the case when I worked but I still wasnt ever late paying at pick up. One last thing, how would you let parents know you will be updating the contract or just give it to them to read over and return with signatures?

My payments are also due on Friday at pick up time for the upcoming week. If someone else is picking up besides the parent, then they usually just give me the check in the morning at drop off as I don't normally go to the bank until Saturday morning.

As far as contract updates, I send a short note home WITH all the new contracts/paperwork saying something like "Here is your copy of the new updated handbook. Please read and return to me NO LATER than *** 2012."

I do contract renewals and updates every year. I also make changes as necessary too. Business changes all the time so that can't be helped. Plus whenever you get a family that does something you didn't anticipate, a new contract/policy change always follows.....LOL!!

[Southernmama]

Awesome Thanks so much!!