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Original poster

Late payment - happening too often (cm)

44 replies

MUM2BLESS · 02/01/2013 21:25

I have policies and procedures in place, which includes payment policy. Over the years I have introduce a late payment fee.

Looking back I would have asked for payment in advance from ALL parents.

Even though I have the late fee payment in place I am still getting payments in bits and also late payments. This has been happening quiet a bit over the years. I deal with five families.

In 2013 I really want to nip this in the bud.

If I send invoices out late I allow extra time for payment. This can be very fustrating as I have bills etc to pay.

How long do you allow late payment before this is addressed? Its not an easy topic to bring up.

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YourHandInMyHand · 03/01/2013 21:00

I introduced a late payment fee of £5 per day too when I used to childmind. I found it only had to be charged once!

As new families came in I set up fees to be paid in advance. Parents could choose weekly or monthly (I advised them to choose based on how often they were paid themselves). I did on one occasion send a parent off to the very close by cash machine when she dropped off without paying. I explained I'd been expecting payment and would be using the money to take the children out to soft play so would she mind popping to the cash point for me. Again I never got a late payment after that.

Also used to do a newsletter now and then with holiday dates, reminder of sickness policy, any new equipment or trips the kids had generally all enjoyed, topics we'd been covering, etc.

I agree be business like. Fair but firm. Smile

Original poster
MUM2BLESS · 03/01/2013 20:52

If I introduce a harsher late fee do I need to amend my payment policy bit or just let parents know of my decision.

I have to tred carefully as most of my parents are bril at paying invoices.

Thanks

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Original poster
MUM2BLESS · 03/01/2013 20:46

It may take a few days from being trans to being in your cms account. Maybe your cm is ok with it. Bringing up late payment is not an easy topic to discuss. You can ask her if you choose to.

Sometimes cm may get paid by vouchers and cash, one may be late.

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CinnamonCandle · 03/01/2013 20:33

Hope you don't mind me butting in but as someone who uses a childminder can you tell me how long childcare vouchers take between leaving my account and going into the CM's account? There is only 3 days between the date I receive them and the date the invoice needs to be paid. CM has never complained but maybe too polite.

Original poster
MUM2BLESS · 03/01/2013 19:19

I am THINKING about introduing this charge for the month of Feb.

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Original poster
MUM2BLESS · 03/01/2013 19:14

Thanks again.

I really thinking about introducing the heavier late charge of £5.00 for each day the payment is late.

I provided service for one family yesterday and today. I was paid today. Most are prompt at paying.

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Bonkerz · 03/01/2013 09:26

I send invoices in the last week of the month. Payment is due before 10th of month and if payment not made by 10th then care stops and 25% of total bill gets charged. I've never been paid late!!!!!!!!

beamme · 03/01/2013 09:24

I pay my CM weekly, to avoid a big all in one payment, she prefers it that way too. I pay on a Friday so that any extra hours for the week are paid for. My DC's also attend a daycare and I pay that on a Tuesday each week, when I get my tax credits.

BranchingOut · 03/01/2013 07:05

I just don't understand this and how parents expect to get away with it. The nursery we use, albeit in an expensive part of inner London, always charges in advance, plus a hefty deposit equal to one month's fees. You have to pay by direct debit and any voucher payments are refunded to your account, as and when they clear.

Give them notice that you will be changing to billing in advance, or change to billing in advance as you get new families.

ZuleikaD · 03/01/2013 06:29

I charge in advance and also have a £5 per day late fee. If a payment is late, a family gets one warning and then gets charged the following month. It's extremely rare - once they've had a set of late fees - for them to be late again!

lechatnoir · 02/01/2013 23:18

You could always do a group email a bit like a newsletter and hide include a note about new & more rigid late payment fees along with holiday dates & plans for the coming months.

Original poster
MUM2BLESS · 02/01/2013 22:32

Thank you for your comments.

More welcomed...thanks

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IwishyouaMerryChristmas · 02/01/2013 22:04

We've used a few different childminders over the years and some have charged in advance, others in arrears.

Delayingtactic · 02/01/2013 21:56

I have always paid my CMs in advance. I actually find it quite hard that her invoicing is pretty haphazard and I have to ask for it a couple of times. There have always been clauses about so many late payments (I think three) and then a late payment after that (I think it was within 3 months of last late payment) will result in CM refusing to have child until balance cleared.

Original poster
MUM2BLESS · 02/01/2013 21:51

sorry or does everyone charge in advance? excuse me its getting late Blush

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Original poster
MUM2BLESS · 02/01/2013 21:49

Thanks IwishyouaMerryChristmas I have made a note of this.

Anyone else got anything else in place to deal with late payers, who does everyone charge in advance?

My late payment fee is £5.00 per late invoice.

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IwishyouaMerryChristmas · 02/01/2013 21:45

Can you review your policies and change the late payment one to include quite harsh late payment penalties?

Our last CM stated that she would charge £5 for every day that payment was late. I made sure that everything was paid on time every month!

Original poster
MUM2BLESS · 02/01/2013 21:39

Thanks HSMM. I think I should have dealt with this ages ago.

Last month I did send out the invoices early but it still happened.

What did you say during the meeting, if I should be so bold to ask? I know this needs to be address as its happened too often.

Its a new year I need some changes to take place.

What action do you take next? How do you put this in writing. I will be charging the late fee and would like to attach a reminder to this. What do I include?

Thanks

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HSMM · 02/01/2013 21:29

I get payment in advance, but crack down on late payments straight away. I also send invoices 2 weeks before they are due, to allow time for vouchers etc to be processed. If parents are still late after a couple of reminders, I call them in for a meeting. I found it very hard when I first started, but I have found the more I act like a business woman, the more they treat me like one.

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