Parent VERY Behind On Payment

[alaskanmomma]

I run an in-home daycare, and in late August took on a family who at the interview ensured me that they would be an awesome family(I've had payment issues in the past)...

I've had this kid since August 27th and have been paid TWICE since then... once September 7th for the 2 weeks of care and then October 8th for care between Sept. 7th and Oct. 8th.. it's almost November 1st, and they haven't even MENTIONED that they owe me money. I normally expect payment every 2 weeks(as stated in my contract). I know they have 2 rents to pay and their money is tight, but so is mine.. DH makes $14/hr in a high COL state for the 4 of us, and this kid is my only significant income(I babysit for a friend who pays me $30/day when I watch her 2 kids which is 3 days a week usually, but that doesn't cover much..) I just need advice on how to approach her, considering it's the end of the month, I want to let her know the spot is going to be up for grabs in 2 weeks if I don't receive payment by Friday, but don't want to sound harsh. Advice, please :confused: !

[Michael]

Welcome to the Daycare.com Forum! I've upgraded your status. You can post freely now.

I would have a late payment policy and inforce it with late fees. Here are some threads on the subject: https://www.daycare.com/forum/tags.p...payment+policy

[Cat Herder]

Why don't you want to sound harsh?

You deserve to be paid.

I would not even let them back in the door without payment.

[Willow]

I run an in-home daycare, and in late August took on a family who at the interview ensured me that they would be an awesome family(I've had payment issues in the past)...

I've had this kid since August 27th and have been paid TWICE since then... once September 7th for the 2 weeks of care and then October 8th for care between Sept. 7th and Oct. 8th.. it's almost November 1st, and they haven't even MENTIONED that they owe me money. I normally expect payment every 2 weeks(as stated in my contract). I know they have 2 rents to pay and their money is tight, but so is mine.. DH makes $14/hr in a high COL state for the 4 of us, and this kid is my only significant income(I babysit for a friend who pays me $30/day when I watch her 2 kids which is 3 days a week usually, but that doesn't cover much..) I just need advice on how to approach her, considering it's the end of the month, I want to let her know the spot is going to be up for grabs in 2 weeks if I don't receive payment by Friday, but don't want to sound harsh. Advice, please :confused: !

You need to sound harsh at this point though.

Do it in writing and get a response in writing to make sure they received it.

Dear parent,

I have quite a few people asking me about availability and I cannot continue providing care for a child I'm not getting paid to provide care for. Per the daycare licensing rules and regulations in the state of Alaska I am only able to provide care for a limited amount of children and my family depends on the income I make to support us.

I need the amount you owe in arrears ($____) paid in full by Friday November 2nd or I'm going to have to terminate our contract effective immediately. While I sympathize if you're having any type of financial hardship not getting paid for a spot that is currently occupied is causing my family a financial hardship and I cannot manage this situation this way any longer.

I appreciate your prompt attention in this matter. Please notify me of your intentions in writing, I am sincerely hoping we can figure this out!

Regards,
provider
10/31/12



If I were you even if you do end up getting payment in full, I'd still terminate effective immediately anyway.

Be prepared to take them to small claims court to collect if you need to.

I'll never understand why people think it's ok to stiff someone caring for your own child......


ETA - why wait the two weeks to put the spot up for grabs? Are you licensed (I assumed because you said you have a contract)? Do you have more wiggle room than just the one FT kiddo and the other friends part timers? I have no idea what ratios Alaska has.....

[Happy Hearts]

It is also becoming normal policy to get payment before services. In future, perhaps you could get one (or two) week paid in advance to avoid this happening again.
Good luck!

[itlw8]

from this day forward all clients pay in advance.

Tll this family you need payment NOW> You let it slide so they put you last.Do not take them a single day more if they have not paid you a sizable chunk of money.

[alaskanmomma]

Thanks for the replies, everyone

I guess my only reason for not wanting to sound "harsh" is because I don't really have a backbone(which I've noticed is NOT a good trait in this business)..

I am thinking of telling DCM something along the lines of "I hate to bring this up, but I need at least 2 weeks of pay by Friday or I will start the termination process on Monday." In my contract it states I will give a 2 week termination notice/they will give me a 2 week notice before leaving, so... that's why I have to give the 2 weeks. I have 2 families who constantly ask if I have a spot(and in theory I do, but with being 15w pregnant, having 2 kids, I like keeping it small), so I'll throw in someone else wants his spot if they don't pay.

[DaycareMomma]

First off, when you speak to her, do NOT say "I hate to bring this up." In reality, do you really hate to bring it up or are you itching to bring it up since its your families finances that are taking the hit?

I'd also tell her that if she doesn't pay, her child doesn't play. I understand you have a 2 week notice in there, but she hasn't paid you in over 3 weeks, that alone is grounds enough for immediate termination.

[daycare]

You need to sound harsh at this point though.

Do it in writing and get a response in writing to make sure they received it.

Dear parent,

I have quite a few people asking me about availability and I cannot continue providing care for a child I'm not getting paid to provide care for. Per the daycare licensing rules and regulations in the state of Alaska I am only able to provide care for a limited amount of children and my family depends on the income I make to support us.

I need the amount you owe in arrears ($____) paid in full by Friday November 2nd or I'm going to have to terminate our contract effective immediately. While I sympathize if you're having any type of financial hardship not getting paid for a spot that is currently occupied is causing my family a financial hardship and I cannot manage this situation this way any longer.

I appreciate your prompt attention in this matter. Please notify me of your intentions in writing, I am sincerely hoping we can figure this out!

Regards,
provider
10/31/12



If I were you even if you do end up getting payment in full, I'd still terminate effective immediately anyway.

Be prepared to take them to small claims court to collect if you need to.

I'll never understand why people think it's ok to stiff someone caring for your own child......


ETA - why wait the two weeks to put the spot up for grabs? Are you licensed (I assumed because you said you have a contract)? Do you have more wiggle room than just the one FT kiddo and the other friends part timers? I have no idea what ratios Alaska has.....

this....willow hit it on the head!!! perfect wording!!! it's not fair for you to always be there for them and them not to pay you.... as hard as it is, pull your emotions out of this and view things from a business perspective!! you will be so much happier when you can do this...

[MarinaVanessa]

Thanks for the replies, everyone

I guess my only reason for not wanting to sound "harsh" is because I don't really have a backbone(which I've noticed is NOT a good trait in this business)..

I am thinking of telling DCM something along the lines of "I hate to bring this up, but I need at least 2 weeks of pay by Friday or I will start the termination process on Monday." In my contract it states I will give a 2 week termination notice/they will give me a 2 week notice before leaving, so... that's why I have to give the 2 weeks. I have 2 families who constantly ask if I have a spot(and in theory I do, but with being 15w pregnant, having 2 kids, I like keeping it small), so I'll throw in someone else wants his spot if they don't pay.

I know you already mentioned that you don't have a backbone however in this business if you don't have one you're going to get walked all over. Don't ever start a conversation with "I hate to bring this up ..." "I'm really sorry but..." etc. It pretty much says "I want you to do this but you don't really have to listen to me because I'm a pushover". Just say what you want and never apologize for following through with your policies. Instead try "I need at least 2 weeks of pay by Friday or I will start the termination process on Monday." just by ommitting the "I hate to bring this up" you already sound more sure about it and confident.

If you have not been paid then this family has already breached the contract therefore it's already void. I would take this opportunity to rewrite your contract and do a couple of things.

1. Have a handbook as well as a contract.
2. Require that you be pre-paid in advance before you actually provide childcare. For example have your clients pay you on Friday November 2nd which will cover childcare from Monday November 5th to Friday November 16th then on Friday November 16 they pay for another 2 weeks of childcare etc.
3. Add late payment fees to your contract/handbook.
4. Add what will happen if parents don't pay and owe you money.
5. Have a better termination policy.
6. Have a "no pay, no stay" policy. If you havn't been paid then the child can't come to daycre until you do get paid and they still owe you the full rate plus late fees.

Here are how I have my policies worded. Maybe others can chime in with other examples.

Tuition
All full-time and part-time tuition payments are to be paid in advance of care and are to be made payable on Fridays no later than 6:00 p.m. to cover the following week of childcare. If a child is not present on the day the tuition is still due. When the Friday of a tuition payment falls on a holiday, the payment is due on the business day before the closure. Tuition fees are due 52 weeks per year regardless of attendance, unless otherwise stated. Rates may be increased periodically but not more than once a year

I get paid onc week at a time not 2 but you can change the policy to fit your needs.

Late Payments
There is a late payment fee $10.00 per day for full and part-time clients if the tuition is not paid by Friday at 6:00 p.m. If payment is not made at drop-off by the child’s next scheduled day the child will not be accepted into care until the payment is received in full, including all late payment fees.

Unpaid Tuition and Fees
If a period of one week (seven days including weekends) passes and payment still have not been received, the childcare provider may terminate the contract and fill the opening.

The client will be responsible for any payments owed up to this point, any late fees that accrue and also for the time of the child’s required two-week notice even if the child has not been present. The client will also forfeit the two week security deposit.

Attempts to collect monies owed, if not successfully collected, will be sent to court and reported to collections should it be necessary. The client will also be responsible for any fees and costs incurred during this process including, but not limited to, court, attorney and collection agency fees.

The client’s account will also be reported to ProviderWatch, a national child care credit reporting agency catered for childcare providers to run checks on clients. Many childcare providers use ProviderWatch to screen potential clients for past due accounts or to check if they have trouble paying their childcare obligations.

ProviderWatch.com (866) 267-3691.

[Crystal]

So, this parent has the audacity to not even mention paying, as if there is no obligation for her to even pay and YOU feel bad?

No way, Jose. I would, the very next time I see her, be the one to bring it up. "Sally, I am not sure as to why, but you have failed to pay child care fees for (dates) and have not bothered to discuss with me why you haven't paid or when you will be paying me. I understand that we all have financial issues from time to time, however I am not in the bsiness of allowing other people's financial issues to become mine. I MUST be paid, in full and on time. If I do not recieve payment, in full, by Friday, Nov. 2, I will have no choice but to terminate services effective immedialtely."

I would personally SAY IT OUT LOUD TO HER, but if you cannot do that, put it in writing,(which you would need to follow up with anyway).

Wow....I just cannot believe this.

[daycare]

So, this parent has the audacity to not even mention paying, as if there is no obligation for her to even pay and YOU feel bad?

No way, Jose. I would, the very next time I see her, be the one to bring it up. "Sally, I am not sure as to why, but you have failed to pay child care fees for (dates) and have not bothered to discuss with me why you haven't paid or when you will be paying me. I understand that we all have financial issues from time to time, however I am not in the bsiness of allowing other people's financial issues to become mine. I MUST be paid, in full and on time. If I do not recieve payment, in full, by Friday, Nov. 2, I will have no choice but to terminate services effective immedialtely."

I would personally SAY IT OUT LOUD TO HER, but if you cannot do that, put it in writing,(which you would need to follow up with anyway).

Wow....I just cannot believe this.

you give an inch some will take a mile..and then some.....................................
Crystal I want to hire you as my backbone...

[Crystal]

you give an inch some will take a mile..and then some.....................................
Crystal I want to hire you as my backbone...

Lol! Yeah....I don't mince words with people. This is my career, I work very hard and I deserve to be shown respect, just as all provders do.

Soooo.....I learned my first year in the biz.....speak up for myself or be treated like crap, burn out and quit doing a job I love. I learned to speak up and the reward is VERY respectful, appreciative families who value my work with their children. I NEVER have to ask to be paid and I am NEVER paid late.

[daycare]

Lol! Yeah....I don't mince words with people. This is my career, I work very hard and I deserve to be shown respect, just as all provders do.

Soooo.....I learned my first year in the biz.....speak up for myself or be treated like crap, burn out and quit doing a job I love. I learned to speak up and the reward is VERY respectful, appreciative families who value my work with their children. I NEVER have to ask to be paid and I am NEVER paid late.

I wish I could say the same... I don't get parents of today, really I don't.

i have parents that have been with me for years and they all still ask when payments are due even though it has never changed in 10 years.......................

[littlemissmuffet]

When mentioning terminating services if payment isn't made in full by November 2nd... also mention you will be taking her to small claims court for the childcare fees, late fees, lawyer fees and any time missed from work. That ALWAYS scares parent who try and screw me into paying me.