Tweet
I just need to throw this out there and see what you guys think...in the past 6 months I have had 2 families where the parent got layed off their jobs and just called and said their child would not be coming to daycare anymore. No notice or anything. I require a 2 week notice. And they will not pay their balances. One parent is really mad about my rule on if your child misses daycare on their scheduled day I still charge 50%, so she refuses to pay her last 2 week bill, although she signed a contract where the rule was stated. The other parent just isn't paying for whatever reason. Both balances are under $100, so I'm not sure it's worth taking them to court. It's just very annoying. How do you guys handle non paying parents? I have been doing daycare for 19 years and have only had to take 1 parent to court. Thanks.
-
-
Parents That Won't Pay For Daycare
You should think about a getting a deposit. Secondly, if someone signs a contract then they need to be responsible and abide by it. Put some teeth into it and take them to small claims court. It is worth it. This is a business and you are offering a much needed service. You need to take your emotions out of these and run your business as a business. If someone has a hardship then write it off as a loss or charity but YOU be in control of who deserves it. -
Parent's Won't Pay??
Thanks so much for replying! I had a feeling that is what was going to be said. My own licenser says I am a softy. I also have the lowest rates in the county. I do let my emotions get the best of me, but I don't like it when I am taken advantage of. I have thought about the deposit thing and I am going to start that from now on. With 2 parents in the last 6 months not paying is enough for me to see that I have to start making some changes in my business. I am also really starting to consider the court thing as 1 parent left in October and has only made 1 payment on her balance and that was months ago.
Thanks again!Comment
-
Deposits are a good idea - it also means when someone is a little behind (as happens to us all!) then they aren't actually.
While for less than $100 I wouldn't bother chasing them (my time is worth more than that!) you may want to, and the example may be worth it.
(People who disagree with something they've already agreed to are always trouble
)
You're not wrong for thinking people should pay the money they have agreed to. How would they feel if you said "No, I don't feel like caring for little Johnny today - I guess you are stuck"?
hope it helps!Comment
-
always do a deposit
I get a 2 weeks deposit AND I get paid on monday morning, no exceptions. I've got no problem holding a check, but I got to have something.
I give my families 150% and am always trying to find ways to improve and make my center fill as many needs for them and their kids as possible. I can't do that if I'm chasing down money and getting stiffed.
Unfortunately the money is important and must be dealt with but my way kind of keeps everyone honest and they don't seem to worry about money they've already "spent".
By the way ~ I'm a softy too. that's most of the reason I have to do it the way I do. I'd NEVER get paid. LOL!Last edited by Michael; 04-09-2008, 12:42 PM.Comment
-
About Not Paying For Services........
This is what I do, I have a signed form saying that even if the child is sick/lack of work/ not coming when to be expected/ they have to sign a 2 week notice and yes I have taken 1 person to small claims court and it did favor to me and I had also noted that if payment is not received there will be an additional fee of $5.00 per day until pail in full. So for this one person who only owed me $60.00 after going to court she had to pay $390.00 with all the late fees included. Her loss. So all in all have them sign a letter stating all your rules (this is not a pay as you go)Last edited by Michael; 04-09-2008, 12:37 PM.Comment
-
If you do not already have parents paying up front you should consider changing your policy. Of course you need to give notice to current families in care and have all new comers start from the get go..
You should have parents pay the Friday before care starts Monday and if they are late and don't pay by the end of Monday tell them their child(ren) can not return to care until payment is made in full along with charging late fees (starting with Saturday) until payment is made in full.
I don't think many parents realize what all goes on with being a provider especially if you are a small business from your home. There is no difference with these parents not paying you and them not paying their house payment, cable bill or some other debt. If anything -- watching someone's children is more important that cable most of those other bills. ALso you may want to consider Provider watch. It is like a credit check for dead beat parents. You can list both sets of families and what they have done. Not all people use this site but there are many of small and big child care centers (independent home providers too) decide whether or not to accept a family. If you also want to send them a letter letting them know that failure to honor their contract you have decided to take this route. What do you have written in your contract to deal with dead beat parents??Last edited by Michael; 04-09-2008, 12:44 PM.Comment
-
Was Burned Too Often
I was burned on the two week notice thing three times. I now require payment in advance in two week increments. I also require a registration fee. I give NSF check people 5 days to pay and then take them to the district attorney. I charge $25 per bounced check plus any additional fees the bank charges for my inconvenience.
I have everything written into the contract and each item must be initialed that it was read and agreed to.
You are running a business, and unfortunately you are going to run into parents that don't want to pay. Do you really want to keep parents who don't appreciate that they are paying you to care for and raise their children and are too cheap to not bounce checks and not honor their contracts?
It ****s to be a hardA** about it but this isn't something you are doing for kicks. This is your house payment, your utilities, and the food you put in your own childrens stomachs we're talking about here.
Please be kind and firm with the parents, the good ones will appreciate and respect it. The bad ones who would have ripped you off won't stick around anyway.
pingaa3
daycare provider in cAComment
-
I completely agree with you!! I am running a business!! I will take you to court and i get the monies due to me. My family has to eat too and I'm sorry to say but my family does come 1st.Originally posted by pingaa3Comment
-
I have worried about that myself. I have been "taken" a couple of times by parents who just quit showing up.
I am considering going to payment on Monday morning for the upcoming week of care. While I don't feel the need to change this for my existing families, I should consider changing for any new families.Comment
-
In our area one of the big things when you take supplement is that all policies are equal for everyone. They basically don't want you charging more for the supplement kids than anybody else due to the delay. So if we change a policy it must be across the board, everyone gets changedComment
-
You know, I'm a big softy also, and I always try to help my families when financial hardship falls upon them; but there are some parents who will really take advantage of you. Over time I become very firm about payment. Someone mentioned earlier, this is my house payment, food for my children, utilities and so on. You would be surprised at how many parents don't think of it in this way.
I now require that parents pay me in advance whether weekly if that is how they are paid, bi-weekly, or monthly. If parents don't pay me on their scheduled day, they are charged a $5 a day late fee until payment is made in full. If after 3 days I haven't been paid, I won't care for their child until payment is made while still accruing daily rates and late fees.
I have only had to enforce this once with a parent who had only been a client for about 1 month. She was one of those parents who had an excuse for everything.. Oh, I'm sorry but ........ You know the type. One morning she rushes in the door and tells me that she would have my payment when she returned to pick up her daughter, which this was what she had been telling me for 3 days now. I told her that was fine and what her balance was up to that point, and that I wouldn't be caring for her daughter that day. She looked at me like I had slapped her across the face with a brick. She said, "What do you mean you can't watch her today?!" I re-explained the policy to her, and she scooped up her daughter and stormed out the door madder than a hornet. You know what? She was back in 15 minutes with payment in full including all late fees and an apology. I never had a problem with her payments, excuses or anything again. In fact, she was with me an additional 3 years before they moved.
I don't know if that helps you or not, but I hope you enjoyed the story at least.Comment
-
At enrollment I require payment for the last week of care, a $50 annual supply fee, and $30 one-time Registration Fee; this in addition to the fee for the first week of care. I do allow them to payout the last week, supply fee, and registration fee upon request. I require a 3 week notice, the last week has already been paid at enrollment.
My parents pay on Friday for the upcoming week. No payment by Monday morning, no care.
Even with my policies I have lost money too, but not enough to bother with the hassle of taking them to court.
If they write a hot check and don't make it good, you just report them to the local police. You won't get your money, but a warrant will be issued for their arrest and it will remain on their record. My parents have to pay with money order or cash if bad checks become chronic.
Now, here's what you can do and has proven effective for many a provider.
It's easy, but you may not get the money owed you quickly. Depends on the time of year.
If the amount of money they have paid you is significant, they will call you around the first of the year requesting a W-10 for tax purposes. Refuse to provide it until they fulfill the terms of their contract. Works like a charm.
If your parents provide a port-a-crib or other equipment, as mine do, withhold that as well until payment in full has been received. I have acquired several expensive pieces of equipment this way, which were equivalent to the money owed.
Providers should require references from potential clients. They expect references from us, and we're heavily scrutinized. The prospective client should be as well, imho.Comment
-
I like the way you think. I am a parent not a caregiver. I suggested to my caregiver that she charge on monday mornings and if they didn't pay they didn't come. It would be hard to turn them away but you have to think of your own families too. If I were a caregiver this is the way I would do it because I couldn't afford to buy supplies if the parents didn't pay. I don't think that parents would mind a bit!
Comment
-
Being a 'softy' doesn't pay the bills in your own home.I like the way you think. I am a parent not a caregiver. I suggested to my caregiver that she charge on monday mornings and if they didn't pay they didn't come. It would be hard to turn them away but you have to think of your own families too. If I were a caregiver this is the way I would do it because I couldn't afford to buy supplies if the parents didn't pay. I don't think that parents would mind a bit!
At some point you have to put the 'BEING A SOFTY' portion of yourself aside...and acknowledge that you are running a professional business.
The 'less than $100 amount' is not worth pursueing in court...
I always tell my dear friend and fellow child care provider...
LET THIS BE A LESSON TO YOU....
Learn from it...and MOVE ON...
Don't continue to repeat these types of mistakes.
We are all professional care givers.
You can't expect a parent to treat you as a professional, unless you ACT like a professional.
Change your policies.
Type up a NEW PAYMENT POLICY..
Give your current parents a set time period to conform to your new payment policy....
If they are currently paying you behind....let them gradually 'flip over' by adding a small amount each week, until they are paying ahead.
I am THE ONLY PROVIDER in my town that charges a 2 week deposit upon enrollment.
When I implemented this policy 7 years ago, every other provider in this town told me I'd ruin my daycare business by expecting parents to pay a 2 week deposit.
Yet....here I am....full daycare..and a waiting list.
I've had many, many parents tell me that they appreciate the PROFESSIONAL manner in which I run my business.
Payment is due on FRIDAY, in ADVANCE of the following week.
2 week deposit due upon enrollment. ( I do allow parent's to make financial arrangements to 'pay out' the deposit )
If they decide to withdraw from care...they give 2 week notice and final 2 weeks are paid.
I have had people walk off and leave the deposit..
Their loss.
I also recently had a parent give 2 week notice...and then ask what would happen if they chose to stop coming before the 2 weeks was up.
In other words...she wanted a refund for a portion of the 2 weeks...
NO.
This is why I require a 2 week deposit...to prevent people from walking off without giving proper notice..
How many of you providers out there have ever actually had a parent give PROPER NOTICE of withdrawel...and then actually attend...and pay...
HA...
In the beginning, EVERYONE has good intentions...
It's in the end that they will leave you owing a balance...and without proper 2 week notice...
I make several things VERY clear in the beginning.
Payment is due, or you do not have child care services.
This is NOT NEGOTIABLE.
Also....my closing time is NOT NEGOTIABLE.Comment
Comment