2 Sisters Home Sick, No Payment On Friday

[trix23]

I invoiced the family on Thursday morning through Square App and they said they would pay it tomorrow (understandable since my due date is Fridays by noon). But it's 6pm on Friday night and still no payment. I charge a $10 late fee if it's submitted past noon. So obviously I need to address this but how do I go about doing it? Send a text that a new invoice was created or just send an updated invoice with the late fee, etc?

This payment was for next week and it was supposed to be their last week because of job circumstances. Now I'll have no customers and I may not see this $....

[Pestle]

Yeah, I bet they're trying to ghost on you. Did you take a deposit?

I've only been operating for 10 months. I've had two families reluctant to pay a deposit, and I termed both families for, among other things, consistently late payments. Among a bunch of other things. It's reinforced for me that people who can't or won't prioritize funding their child's care are going to be difficult to work with in all kinds of ways.

[trix23]

I don't collect a deposit but I charge an Application Fee of $50 plus a Supply Fee of $80 (or $120 per family). So I charge something at the beginning, but not a deposit. I've had a hard time getting families to enroll in the first place, and we need my income. I've never had a problem with being paid- I don't allow leniency on the due date and time and I don't allow to be paid late. I've had prospective clients ask if I can be flexible with payment and I'm thinking, "like what, accept it a week late or what?" .

How much is your deposit and how does it work when a client is leaving?

[Pestle]

Last year I took a one-week deposit from both full- and part-time families; I'm going to amend that to two weeks from now on.

The deposit applies to the last week (or two; you decide) of care. If you or your client decides to terminate care, the deposit is used up over that week (or two) and the client doesn't have to pay you as they usually do.

But if you terminate care on the spot, you have to refund the deposit, and if the client leaves without advance notice, they lose the deposit.

I've terminated care on the spot once, and refunded the deposit and the balance they'd paid for that week of care. I've also terminated and told the family they could stay until their deposit was exhausted or notify me before the end of the weekend and get their deposit back; they chose to withdraw immediately and get the deposit back. Basically, I gave them the choice of both ways out.

So the deposit does two things: it protects you from ghosting clients, and gives you leverage when you'd like a challenging family to leave ASAP. The downside is that you have to remember a deposit isn't income unless the family ghosts, and in that case it's still just income for the week/s they would normally have been there; even if you spend it, you'll still have to refund it or provide care without a fee. The way you do it is non-refundable and applies to every family, which also has its upsides! I'm interested to see what Blackcat and other seasoned providers have to say--do they use only a deposit, or also have non-refundable fees?

[Leigh]

Last year I took a one-week deposit from both full- and part-time families; I'm going to amend that to two weeks from now on.

The deposit applies to the last week (or two; you decide) of care. If you or your client decides to terminate care, the deposit is used up over that week (or two) and the client doesn't have to pay you as they usually do.

But if you terminate care on the spot, you have to refund the deposit, and if the client leaves without advance notice, they lose the deposit.

I've terminated care on the spot once, and refunded the deposit and the balance they'd paid for that week of care. I've also terminated and told the family they could stay until their deposit was exhausted or notify me before the end of the weekend and get their deposit back; they chose to withdraw immediately and get the deposit back. Basically, I gave them the choice of both ways out.

So the deposit does two things: it protects you from ghosting clients, and gives you leverage when you'd like a challenging family to leave ASAP. The downside is that you have to remember a deposit isn't income unless the family ghosts, and in that case it's still just income for the week/s they would normally have been there; even if you spend it, you'll still have to refund it or provide care without a fee. The way you do it is non-refundable and applies to every family, which also has its upsides! I'm interested to see what Blackcat and other seasoned providers have to say--do they use only a deposit, or also have non-refundable fees?

I require first week and last 2 weeks' fees at start. I never call that last 2 weeks' a deposit...it is not refundable. They use it or they don't. If I term, I may or may not refund the final 2 weeks', depending on MY opinion of whether I think I should. If they term and choose not to use that last 2 weeks', then they forfeit the fee.

[Pestle]

I always refund unless they disappear. Since it's a deposit, they did pay for the services, no matter what other things have been going on. However, I refunded one family the deposit less a late fee they owed me. So you can use the deposit to collect other outstanding fees.

[trix23]

I guarantee that if I did 3 weeks' pay upfront that I wouldn't get any clients. Most have issue paying the Fees I charge at the beginning plus the first week's tuition ($130 plus the weekly rate).

How long have you been a provider? I'm brand new (Nov 2016).

[trix23]

I would do what Leigh does, charge 1st week and last 2 weeks upfront, non-refundable. It assures they give you notice and that you can find a suitable replacement. I want to do that, just don't think that I would get any clients. As it is with the rates I charge and my policies, families aren't exactly knocking down my door.

[Ariana]

I charge a two week deposit that is applied to their last two weeks of care when contract is terminated. This way I am covered at any time if they try to skip out on payment. It is also good for parents to see that the deposit is applied to care and not just a miscellaneous payment. I have never had a pareng use the two weeks after care is terminated so it is "free money" usually. My payments are due biweekly after care has occurred and because I have the deposit I am always covered. The deposit is not refundable unless I decide to terminate contract during my 6 week trial period.

If this were me I would simply text and say "Hi, I know the girls were not here on Friday and you likely forgot but payment was due yesterday by noon". This will give them a heads up and allow them to rectify the situation in case they genuinely forgot. If I got no response and no payment by Monday I would charge the full late payment rate.

[trix23]

How long have you been in business, Ariana?

[hwichlaz]

Honestly, I wouldn't expect them to leave the house with two sick kids. I charge my fee in advance of care. And as long as it isn't a habit with this family, I'd accept payment Monday morning before they sign them in for the day.

[Blackcat31]

I require 2 weeks deposit to be paid within the first 30 days of care. Once the 2 week deposit has been paid, they are given a permanent contract.

All families pay for services in advance. Some pay weekly, some pay every other week and some pay monthly. I don't care which option they choose as long as they stick to it.

All families also pay via bank transfers or via check. No worries about travel, weather, absent days or closed days.

If they pay via check, they have to write out checks for a month and leave them in the child's folder. The next month, they write another month's worth of checks.
I also charge an additional fee for checks (10% of the check amount) for my time and trouble of having to cash or deposit a check.

All but 2 of my families pay via bank transfers.

I charge a late fee for ANY late payment REGARDLESS of why it's late. Even if their kids are sick. I empathize with them but I still have bills to pay so although I understand the difficulty of having to figure out how to get payment to me, it's not something that alters my actions.

Late is late. Late means an additional fee.

If a family withdraws from care according to my policies, their deposit is applied to their final week(s) of care (minus any fees ect they might owe).

If I terminate the family on the spot, I ALWAYS refund the deposit. I would never feel comfortable keeping money for service I refused to provide.