New Family, Nonpayment

[AfterSchoolMom]

Sigh....

Just posted in the Venting thread, but I have a question for all of you. I have a new family that just started two weeks ago. They signed a contract in which the payment policy states that they pay every Friday for the next week. If not, they're charged a late fee of $15 per day (including weekends) and that if I don't receive payment on Monday with late fees, no care!

My question to you is this - how do you go from the cordial, pleasant, happy childcare provider to the firm, no nonsense, you MUST stick to the contract terms business owner? I'm planning to stick to my guns, but just wondered how everyone else deals with the total 180 in your parent/provider relationship.

[Childminder]

Not easy. I just terminated someone after ten days for payment issues and they called the state and said I was drugging their child. Good luck.

[kendallina]

First I would want to make sure that there wasn't some kind of misunderstanding or emergency on the parent's end. You know, you don't want to be ready for a fight on Monday when you see her, only for the parent to say something like, "well, my dad died Friday, sorry I forgot...".

When a parent doesn't pay, I'm still just as cordial and friendly when I see them. I greet them happily as always, then say something like, "payment is due today", with a smile on my face. If they forgot, then they usually apologize and whip out their checkbook (hopefully). If they didn't really forget then they're anticipating that you're going to bring it up and you need to make sure that you do. No need to get upset about it or anything, just remind them that they owe for the week, plus late fees, as stated in the contract.

It's ok to hold them accountable and it's very possible to still have a very cordial relationship with them even while you're holding them accountable. When I started up this year, almost all of my families are friends of mine from a playgroup and I had two parents that short-changed me for the month (it's a 3-hour preschool, so they pay by the month). I was a little nervous about saying something, but as soon as I did, they each apologized and seemed to genuinely feel bad about the misunderstanding (as WE all know, not every month has only 4 weeks in it ). So, they both paid right away.

Be upfront, clear, friendly and don't let them get away with it, they will respect you more for it and they will know that you expect payment just like all their other services they receive.

Ok, that was a book, sorry. Good luck!

[missnikki]

Generally, I just smile and say "I just wanted to remind you that payment for _____was/is due on _____. I want to avoid charging you a late fee, so will you be making that payment today?" If they give a weak excuse, just say "OK, just remember to include the $___ late fee on that payment."
Do not be wishy washy, ring you hands, apologize, or say you 'll waive the fee unless you plan to do it each time you hear an excuse.

[AfterSchoolMom]

The problem is, it was due today. My usual never fail "payment is due" sign was on the door (first thing you'd see at pickup), but it was hectic today so I didn't think to mention it, and they were gone before I could get to them. I called and left a message, but it's now after 9 and I haven't heard a word. At this point, there would be at least one day's late fee no matter what. By Monday, it'll be $45!! I made the fee high to discourage families from not paying...

[katie]

I know! I'm dealing with this..see vent vent vent posting. I tried this morning after not sleeping to explain to my friend that there are more than 20 days of care in a month. I told her that it was $125 a week. She said okay $500 a month and she proceeded to pay me 2x a month $250. The problem is there is not 20 days of care in a month, there is 22 or 23, that's a full week of pay I lose after 2 months! So I calmly and nicely said look I have written down how many days of care are in each month and so you can see you owe me $575 a month not $500! She said no I know I'm only paid through the 24th, but she is still not going to pay me until the 30! At some point she is going to have to ante up the unpaid days. It didn't seem to phase her, she came 30 minutes late tonight. Sorry long, my point is, they do not FORGET to bring you their child!!!!! And I bet they don't forget to pay their phone bill, house bill, etc. ON TIME or pay a late fee. They are not forgetting to pay you! Sometimes doing what is right for you means being professional, but being direct and saying I am reminding you today that payment was due Friday, or type them up an invoice and stick it to the door! Best of luck to you. It is so tough.

[kendallina]

Just a side note as well...

DH and I are HORRIBLE at paying bills on time. We're generally very responsible people, but when it comes to bill paying we procrastinate like you wouldn't believe. Well, we're late every single month paying our rent and we're supposed to be charged $25 for being late. We've never paid it, the landlord has never said anything about it, so we just continue to be late.

Several months ago I accidentally () forgot to pay the water bill and when it was 4 days late, I had a notice stating that they would turn off my water in 10 days if I didn't pay my bill . Never was late again.

And, truly everytime I see my landlord I feel incredibly guilty, I know I'm always late paying him and I feel bad about it...but yet I continue. Would I be mad if he said one month, 'you owe me $25 late payment'? Not at all and I would never be late again (probably).

[Preschool/daycare teacher]

Just a side note as well...

DH and I are HORRIBLE at paying bills on time. We're generally very responsible people, but when it comes to bill paying we procrastinate like you wouldn't believe. Well, we're late every single month paying our rent and we're supposed to be charged $25 for being late. We've never paid it, the landlord has never said anything about it, so we just continue to be late.

Several months ago I accidentally () forgot to pay the water bill and when it was 4 days late, I had a notice stating that they would turn off my water in 10 days if I didn't pay my bill . Never was late again.

And, truly everytime I see my landlord I feel incredibly guilty, I know I'm always late paying him and I feel bad about it...but yet I continue. Would I be mad if he said one month, 'you owe me $25 late payment'? Not at all and I would never be late again (probably).

Thank you, Kendallina, for that honest post. It puts it into perspective for providers, and that it's okay to have a late fee and that parents will just take you more serious and (probably) pay on time next time. You are a business, and businesses usually have late fees. And people try to avoid those after they've been charged once, so they pay on time...

[boysx5]

I'm nice but firm I learned the hard way by being taken for granted way too many times to count. Now I say it in a nice way and also explain how would they like to go to work and find out that who they work for forgot their check I always say that and also mention about when they have to pay for when they are not here that does their cable company give them credit when they go on vacation and don't watch t.v. usually makes them see the point.

[tymaboy]

You can still be nice while enforcing the rules. By enforcing the rules the 1st time they "forget" chances of them forgeting again will be slim & you will not need to worry about it again. If they try to give you a story tell them you are sorry but this is your business & it would not be fair to the other families if you gave them a break. Plus you need to keep your families wellness in mind as well.

[AfterSchoolMom]

Update!

It actually turned out well. She called me back and apologized profusely and paid me this morning. Hopefully we won't have this problem again. Whew!

[seashell]

How about starting with a reminder note?

Dear Dick and Jane,

Just a friendly reminder that tuition in the amount of $1Million Dollars was due on Friday for your child Sally. My parent handbook states that payment is due on Friday for the next week or be subject to a late fee of $100,000 per day.

If there is a problem, please don't hesitate to speak with me. Otherwise, I will expect your payment tomorrow.

Thank you!

[AfterSchoolMom]

Man, what I wouldn't give to have a job like that! My husband could quit his job!