Payment issue

[Gloucestermom]

I have a little boy who started last week. We had the interview on the last Wed of August, and the mom said that she was desperate since her daycare provider decided to close in September. She asked if I could take her son the next day. I said no, that I'm full and the earliest I could start is Wed the 3rd. I got an email from her partner a couple days later saying 'Just to confirm, he's starting on Tuesday.'. I responded, saying that no, we agreed on Wednesday. During the interview, we discussed payment, and since he was starting on the Wednesday 2 days before my payments were due, I said she could pay me on the 5th for the first week, then the next 2 weeks. In my contract, it's written that I get paid every 2 weeks for the 2 weeks that are coming up. On Friday the 5th, she gave me $120 in cash and said "I'll get the rest to you soon" I said ok.
I haven't received any more money from them, so yesterday I sent an email saying 'Just a friendly reminder that payment was due last Friday for this week and next week, and that the remainder you owe is this much.' I was going to ask her today at pick-up if she received my email.
Today at pick-up she said "I was under the impression that you get paid after, like you work, and then I pay you." I said no, it's in advance. She said "Ok, I'll be honest, I can't afford to give you that, that's almost my whole paycheque" I said "I have bills to pay too though" She said she would talk to her partner and get back to me tomorrow.
So just to be clear, she:
-agreed verbally to pay in advance
-signed a contract where she agreed to pay me in advance
-told me she would give me the rest soon
and now she's going back on this, and saying that she didn't know :mad: and that she'll 'get back to me' about paying me for the work I've done.
I think that if she doesn't pay me tomorrow, I'm going to terminate. What do you all think?

[5 Little Monkeys]

I think that is exactly what you should do. I also wouldn't be accepting him into care tomorrow if she doesn't pay first thing in the morning. I also think in the future, do not give service until it's paid. If they didn't pay me last Friday they would not be in daycare this week until the bill was paid.

[Lou]

Exactly what 5LM said! Keep us posted.

[Lee-Bee]

Just want to point out that regardless of whether you charge 2 weeks ahead or 2 weeks after care...it is the same amount of money owed...so the same amount of her paycheck and she knew the price when she signed the contract. So, in my opinion if there are problems money wise now there will continue to be and if you give the tiniest of slack now she will continue to expect it.

She signed a contract which outlined all the details and she was responsible to have things in order on her end.

Protect yourself here.

[mickyc]

I am very particular when it comes to getting paid. My money is due every second Friday morning, not afternoon, not evening, morning and definitely not after the fact!! I have no problem asking for my money payday morning either. I would be terminating care immediately but also giving them the bill for what you owe. Do you have a late payment fee? If not I suggest putting one in your contract for situations like this. It isn't an "Ok" to pay late it is a deterrent. If she knows that her daycare bill is getting bigger by the day of non payment she will make sure it is paid.

I agree with Lee -Bee, she knew she can't afford you but continued to sign the agreement!

[5 Little Monkeys]

Let us know how this morning goes!! Stay strong and be firm. This is your business and you can't stay in business if you don't get paid!!

Good luck :)

[Secondtimearound]

In my limited experience , some people will pull this EVERY time pay is due ! I would sent email stating unless you are paid immed. You are no longer her dayhome provider !!
I had a similar experience and it last 4 months of chasing and then I termed !

[Crayola kiddies]

in my opinion you will never see this money ....however send her a text asking her to bring you the cash tonight or send you and EMT and if she says she doesn't have all of it then tell her to bring you what she can and then once you have some money in your hands tell her she has till sunday night to pay the rest ....and put up your ads and don't provide another days care with out money

[Secondtimearound]

I have everyone prepay for the month , less hassle for me !

[Lou]

How did it go?

[Gloucestermom]

This morning, she dropped off at snack time, almost 2 hours later than usual. A baby started crying, I walked over and she ducked out without even saying goodbye to her son.
Today, at pick up, I said 'So, what are you going to do?' and she said all in a huff 'Well, we're going to pay you, it'll just be next Friday.' I shook my head and said no, I can't wait that long. She said 'Well?' and I said 'Well, that's it then, I'll get you his stuff'. I already had his diapers and wipes ready in a bag.
I'm amending my contract - 2 days of late fees, then on the third day if they haven't paid then I'm locking my door! Never taking payments after the fact either, even if it is for just a couple days. I have learned my lesson.

[5 Little Monkeys]

I'm sorry that it ended like this but good for you for standing up to this mom and taking control of your business!! Yayy to you!!! :)

Did mom agree to still pay you the remainder of her bill? That is a good plan to amend your contract as well. Live and learn!!

[Rachael]

You have to enforce both your boundaries and your contract. It is not your issue that she either didn't read or didn't understand.

Don't call her - you need to write so you have evidence. Send it by e-mail or better via FB message because that confirms that shes read it.

Be clear that you are willing to enforce your contracts through small claims court if need be.

Tell her you are terminating her care based on breach of contracts. The amount owed to you is XX amount. You are expecting full settlement of this bill by no later than (enter a date no more than a week away). In the event of non-payment, you will have no option but to file with the court to receive your fees.

Inform her that in the event of you needing to file, you will also be looking to the court for
1. The owed fees
2. The cost of filing
3. The unpaid time you will have to take off to file the paper work in court during their open hours
4. Any late payment fee that your contracts state from date debt became overdue until court appearance
5. Any unpaid time you will have to take off to attend the court date
6. The unpaid notice period you've lost out on via having to apply immediate termination.

Also state in your letter to her that following a court case, a judgement will be entered against her which will have a negative affect on her credit rating until it's resolved.

You will get all of that provided your contracts are clear (i.e. no ambiguous language), and it is signed by both of you.

I have had to take a client to court before. I've also helped other local providers with the process. It's straight forward just time consuming.

The judge will initially ask questions to confirm you are self-employed/an independent contractor not an employee and once that's been established, they will refer to your contracts.

I find it helpful if you do lay out the above, to attach an indication of additional fees. If you can find out what the filing cost will be, detail your #of day are childrenxdaily rate for lost income, include your late payment fee etc, it will often be very persuasive.

I don't play games with my income. My contracts are clear and water-tight. I deliver over and above my contractual obligations and I will no accept others not abiding by their part of the contract.

Oh and don't forget to include a scanned, signed copy of the contract with your message to her just in case she's misplaced hers.

[Cgurl1982]

Just wondering where you are located, because this EXACT thing happened to me. Apparently there is a lady in my area who has been scamming local daycare a like this for the last 3 years! I'm in Fergus, ON