Help with late payment

[cara041083]

I have a family that never pays on time. There has been several times that she will show up and say "I can't find my debit card" so she will go and bring me back money late friday night, or sat. Or she will not come on friday, and I usually have to text her all day and remind her to bring me money. Its getting old. I am very close to just terming even though I will loose most of my income ( I have both her kids). The last few times she has "forgot" to pay me, I didn't chase money down, and I made her pay the late fees. But its not getting better. At this point what do I do? She called this morning and once again said the girls are at grandmas today and she said she would bring money by later. I don't have the energy to chase it down or constantly try to remind her. Should I draw up a warning form? I have never gotten to a point where everything I have done hasn't worked. I have never had to put any one on probation before. I was going to make her pre pay, but she always pays sometime on the weekend or my Monday morning so I am at a loss of what to do next. Thanks and sorry for the rambling . I just feel used and stressed and don't know what to do. I feel like I have no choice but to let her do what she wants. I need to get back to me being in charge and not her.

[TheGoodLife]

I have a family that never pays on time. There has been several times that she will show up and say "I can't find my debit card" so she will go and bring me back money late friday night, or sat. Or she will not come on friday, and I usually have to text her all day and remind her to bring me money. Its getting old. I am very close to just terming even though I will loose most of my income ( I have both her kids). The last few times she has "forgot" to pay me, I didn't chase money down, and I made her pay the late fees. But its not getting better. At this point what do I do? She called this morning and once again said the girls are at grandmas today and she said she would bring money by later. I don't have the energy to chase it down or constantly try to remind her. Should I draw up a warning form? I have never gotten to a point where everything I have done hasn't worked. I have never had to put any one on probation before. I was going to make her pre pay, but she always pays sometime on the weekend or my Monday morning so I am at a loss of what to do next. Thanks and sorry for the rambling . I just feel used and stressed and don't know what to do. I feel like I have no choice but to let her do what she wants. I need to get back to me being in charge and not her.

Have you considered making payments due Thursday, and she can't drop off Friday until it's paid? Explain you can't keep accepting late payments anymore and it needs to be IN your bank by Friday.

[Blackcat31]

I have a family that never pays on time. There has been several times that she will show up and say "I can't find my debit card" so she will go and bring me back money late friday night, or sat. Or she will not come on friday, and I usually have to text her all day and remind her to bring me money. Its getting old. I am very close to just terming even though I will loose most of my income ( I have both her kids). The last few times she has "forgot" to pay me, I didn't chase money down, and I made her pay the late fees. But its not getting better. At this point what do I do? She called this morning and once again said the girls are at grandmas today and she said she would bring money by later. I don't have the energy to chase it down or constantly try to remind her. Should I draw up a warning form? I have never gotten to a point where everything I have done hasn't worked. I have never had to put any one on probation before. I was going to make her pre pay, but she always pays sometime on the weekend or my Monday morning so I am at a loss of what to do next. Thanks and sorry for the rambling . I just feel used and stressed and don't know what to do. I feel like I have no choice but to let her do what she wants. I need to get back to me being in charge and not her.

STOP accepting payments during NON business hours.

Download a calendar (calendarlabs.com) and highlight ALL her payment dates.

Give her the calendar and tell her that payments are DUE IN FULL on those days BEFORE noon.

Implement a late fee system where the first late fee is $20 PER calendar day. This will include weekends.....and NO payments are accepted during your off time. EVER.

Increase the late fee EACH time to DOUBLE what it was the previous time.

Let her know that once she reaches x amount of late payments (it's 3x' for me) she will be immediately terminated.

One of two things will happen:

She will begin paying on time (NO stress anymore for you happyface)

or she will pull her kids/pay late and get termed.

Still NO more stress for you because you won't have to deal with her.

Plus, you won't really be out any money because she isn't paying you now as it is..... but you won't be stressing about HER anymore...

If I were you, I'd advertise and fill her space as soon as you can. Some folks just aren't worth keeping as clients. They just aren't.

[Leigh]

It seems that she is not lacking the money, but just not making payment a priority. Sometimes parents just don't understand that we do this because we need the money and that we need to be paid on time just like they do. Be very blunt:

I need you to understand that I must be paid on time. Just like you would be upset if your paycheck didn't show up when you expect it, I am upset by it, too. I budget for payments to be made on time, and it can throw off my system when parents pay late. It's an extra trip to the bank, another session with recording payments, etc. I must have payment made on time from now on. Here are some options that work for me: _______________. You could have Mom always leave you with an extra check already made out for your amount (if you accept checks). You could arrange for an automatic withdrawal. You could change the due date to Thursday. Whatever works for you. And definitely charge enough of a late payment to be a deterrent.

[Cat Herder]

This is a tweaked copy of my old late payment nasty gram.


"Dear Irresponsible Client,

Receiving payment from you in a timely manner has become a real problem for me. You have shown me that you are not reliable enough for me to continue to offer childcare services in advance of payment. I feel strongly that I have proven to you I am reliable enough to be paid in advance.

** From Monday, 08-11-2014, on I will expect full payment in advance of services from you.**

If you have any questions or concerns please feel free to email during business hours. If this new payment schedule will not work for you please refer to my two week termination of contract policy in your handbook.

Thanks in advance for your patience and understanding in this matter.
Frustrated Provider"

[AmyKidsCo]

Have you considered making payments due Thursday, and she can't drop off Friday until it's paid? Explain you can't keep accepting late payments anymore and it needs to be IN your bank by Friday.

Do this right away. It's SO much less stressful being paid ahead of time. I also require the last 2 weeks' payment at enrollment, so parents are never really "late" - I still have 2 weeks' worth of their money in the bank.

STOP accepting payments during NON business hours.

Download a calendar (calendarlabs.com) and highlight ALL her payment dates.

Give her the calendar and tell her that payments are DUE IN FULL on those days BEFORE noon.

Implement a late fee system where the first late fee is $20 PER calendar day. This will include weekends.....and NO payments are accepted during your off time. EVER.

Increase the late fee EACH time to DOUBLE what it was the previous time.

Let her know that once she reaches x amount of late payments (it's 3x' for me) she will be immediately terminated.

One of two things will happen:

She will begin paying on time (NO stress anymore for you happyface)

or she will pull her kids/pay late and get termed.

Still NO more stress for you because you won't have to deal with her.

Plus, you won't really be out any money because she isn't paying you now as it is..... but you won't be stressing about HER anymore...

If I were you, I'd advertise and fill her space as soon as you can. Some folks just aren't worth keeping as clients. They just aren't.

Ditto this. Obviously it's not a big deal to her if she pays late, and until it is she'll continue to pay late.

[cara041083]

Thanks. I told my husband that today is the day and don't be surprised if she gets walks and he said okay. So I'm ready to get this under control and take back my business.

[LadyK8]

Make sure to post an update!

[cara041083]

Make sure to post an update!

I will. So far its 1 pm and I have yet to hear from her. I told my husband that I will not call or text her. the ball is in her court and we will see what happends. If she doesn't come by 5:30 I am going to give her a copy of what she signed, and have her sign a new payment agreement letting her know that her new payment day will be thursday. we will see where it goes

[Laurel]

Thanks. I told my husband that today is the day and don't be surprised if she gets walks and he said okay. So I'm ready to get this under control and take back my business.

Good for you!

Laurel

[Thriftylady]

Good luck. If you are like me, you hate conflict, and these things are conflict to me .

[Blackcat31]

Good luck. If you are like me, you hate conflict, and these things are conflict to me .

Why is expecting you paycheck on a timely manner considered conflict by so many? :confused:

I don't understand that.

It's ONLY conflict if a parent doesn't follow the policies they agreed to but at the same time as a business owner, you have to be willing to uphold the very rules you put in place if you want to be successful.

It has nothing to do with conflict and everything to do with simple follow through.

Thrifty~ This isn't directed AT you...just my general thoughts... because you mentioned the word conflict.

[cara041083]

Well dad showed up with payment on time. I normally don't see him so I was kind of surprised. My husband was outside with our older kids so he gave the money to my husband and then left. My guess is she didn't want to come today because she sniped at me yesterday and before I could stop myself I said something back. We will see what next week brings. But at least now I have a plan in place so I feel better knowing that there is an end in sight.

[Thriftylady]

Why is expecting you paycheck on a timely manner considered conflict by so many? :confused:

I don't understand that.

It's ONLY conflict if a parent doesn't follow the policies they agreed to but at the same time as a business owner, you have to be willing to uphold the very rules you put in place if you want to be successful.

It has nothing to do with conflict and everything to do with simple follow through.

Thrifty~ This isn't directed AT you...just my general thoughts... because you mentioned the word conflict.

I guess really it isn't conflict. But sometimes I have trouble being assertive so I feel like when I am I am creating conflict . That is the reason that while I am starting my daycare this time I am being so careful with a handbook and such. I didn't before and I can't begin to tell you how much free care I gave because I was afraid of "conflict". I just like everyone to be happy and peaceful, and sadly life isn't just that easy.

[TwinKristi]

21 mins til my problem family is late paying for 2 payments in a row. Last time it was just that they were too busy to come up here by Fri at 5:30, this week they were out of checks and couldn't pay me Wed to hold til Fri. Today he was supposed to deposit cash in my acct since he couldn't get up here and the bank closes in less than an hour and my payment will be late in 21 mins. Ugh... So irritated right now!!