Late payment issues

[Busy ECE mommy]

I have had a new family start part time about 6 weeks ago. They have moved to Canada about 1.5 years ago, and the written/spoken english is excellent.
I am running into problems with payments. I do fee schedules for 4-6months at a time, and post dated cheques are provided for that entire period. For them, it was til the end of 2014. This month, they do not attend on my paydays, but later in the week. I have not received either of the cheques( all pay 2 weeks in advance of care) for the December period. They were supposed to provide all post dated cheques when they started, and didn't. The last cheques went thru fine, so it'snot a NSF issue. I also have daily late payment fees that are incurred with late payments.
Should I let them off and just send a reminder email, or apply the late fees and send reminder email that payment was due today.
I don't know if it's a language/comprehension barrier or if they're trying to take advantage of me. Also, my contract says if I get late or NSF payments, then all future payments will be due in cash. Never had this issue before-all of my parents have been great. If I make them pay in cash in the future, how do I get it in advance(right now payments are due on the 1st and the 15th) With the cheques I was always in control of when the deposits were made, so how do I get several months payment post dated in advance now???
Any suggestions on how to move forward? I don't want to let them off so early in their enrollment here, as it becomes a slippery slope....
If they don't bring the $ now, it will be 3 days late when they attend next. And of course my mortgage would come out on the 1st.... Murphy's law!

[mickyc]

I would send an email today stating payment is due today and that late fees will begin tomorrow. I would also ask that they bring post dated cheques for the next 6 months by the end of the week (or whatever timeline you want to give them). You need to get tough. If you let them away with it then they will expect it.

[sandylynn]

I keep it real SIMPLE...I don't and never have accepted cheques...cash only....Monday morning for the current week....if they show up with no money....I send them to the bank....WITH THE CHILD!

[Busy ECE mommy]

I get the cash concept, but how do you prevent people from not just walking away without notice?
What do I do with part-timers who don't attend on my paydays? Chase them down at their house??
My notice period for parents to give me is 1 month, but I've only got a 2 week deposit held back.
Should I increase the deposit?

[AmandaKDT]

I get the cash concept, but how do you prevent people from not just walking away without notice?
What do I do with part-timers who don't attend on my paydays? Chase them down at their house??
My notice period for parents to give me is 1 month, but I've only got a 2 week deposit held back.
Should I increase the deposit?

For part timers or if a child is not present on pay day (like if they are sick) you arrange for them to pay on the last day they attend before the due date or they have to stop by and pay on the due date. I wouldn't ever go to their house to pick up payment, is it their responsibility to get payment to you by the due date or late fees are charged.

I have a couple families that pay cash and it has never been a problem. As for giving proper notice, you could have problems whether it is cash or a cheque (they could cancel it on you). So I think you just have to count on them being honorable and abiding by your policies. If you have a contract then you could potentially take them to small claims court if they refuse to pay what is owed.

[sandylynn]

Hi Busy ECE mommy....I have been quite fortunate with people giving at least 3 weeks notice...the only ones I don't get any notice are the ones that I have thrown off my property due to lack of respect for my family, my home and the children I look after (oh and let's not forget the ones that "think the world owes them"....so in which case no notice or not...I don't want them in my home...I have also been fortunate to have an extensive waiting list....I do the cash thing as I got tired of reminding, asking or chasing people down my driveway for my money....It all seems to work for me....we look after the most important people in their lives (well....for the most part)....and I WILL NOT ...REPEAT...NOT LET ANYONE DISRESPECT MYSELF...OR ANYONE IN MY FAMILY....OR THE CHILDREN I LOOK AFTER.....also I do require a 2 week deposit to hold a spot for someone...if it's more than a month away when they will start...this is NON REFUNDABLE AND DOES NOT COUNT TOWARD ANY DAYCARE....SO...if someone doesn't give any notice, theoretically...I got two weeks pay

[Rachael]

I get the cash concept, but how do you prevent people from not just walking away without notice?

I apply their deposit on their last weeks of care. That helps. Also being willing to enforce a contract. Only once did someone try and walk away without notice and after a stern e-mail, attaching their contract, and explaining how much more expensive it would be if I took them to court, they did pay the balance.
So yes, you could increase your deposit to equal the notice period. That solves that issue.


What do I do with part-timers who don't attend on my paydays? Chase them down at their house??
I take cash or e-mail transfers. My fees are due before drop-off on Monday of the pay period if paying by e-mail or in cash at drop-off on Monday. Could that be a solution for your part-timers who don't attend on your paydays? To send an e-mail transfer on payday since they don't need to physically be there to hand it to you.

[Lee-Bee]

Since they are a bit new, may have a possible language barrier and have not bounced a cheque, then I'd likely be a bit forgiving and not charge the late fees immediately. I would send out an email and give them 24hrs to drop off the cheque. I'd make it known that you prefer post-dated cheques to prevent this problem in the future. Tell them that you have cheques from the other families that you need to cash and making a second trip to the bank for their cheque is an inconvenience. They are likely just not thinking about things from your end.

If your contract with them states they needed to give post dated cheques then you can enforce that or simply move your pay dates to days they are present (the last day they attend before your usual paydate) so that they are giving it to you before the other cheques are cashed.

When I was full here all families paid in advance and gave me months worth of post dated cheques. I did have one family that for whatever reason was hesitant to give me a stack of cheques. They simply sent their cheque 2 days before it was actually due (it was always for the following 2 weeks of care). This is the family I still have here and I know it is by no means a trust issue they just prefer to give biweekly payments. Since they always send it early it is never a problem for me as if they ever forgot to send it I would have the next day to remind them and still have it on time. If they had ever forgotten I would have given them a second chance before then insisting I get posted dated cheques. They've never been late. They are more comfortable with this method, it is still respectful, timely and doesn't complicate things on my end so there is no problem with not having a stack of post-dated cheques.

I'd never take that much cash though. I have no use for cash in day to day life and would not be comforable with that much cash in the house or on me for a bank run!

[mickyc]

Personally I would not be forgiving. If we don't enforce our own contracts then what is the point of them. I have it right in my contract that it is 100% their responsibility to make sure I have my cheque on time. I have had to charge a few parents late payment fees. It usually only happens once or twice and then never again.

As far as deposit. I use their deposit towards their first 2 weeks. In the 4 years I have done daycare I only had 1 family not give proper notice but in reality I had major issues with them and should have terminated sooner. I did get my money though eventually.

I have no problem with cheques. I have 1 family that gives me 6 months at a time, everyone else pays on payday. I have no problem asking for my cheque too before they leave. They usually already have it written out and in their pocket or accidently left it in their car. I always email/text the day before payday with their total as a reminder. I find it works the best in helping families remember.

When I had a part-time family they would just leave blank cheques for me. I would fill them out and get them to sign one on the last day before payday that they were here.

[Lee-Bee]

From the original posters notes it sounded to me like the family isn't in care the day the cheques are due...so they are bringing them the next day of care. Unless it was explicitly told to them that this wasn't acceptable I just feel that they may not realize they are in the wrong. I think it is a somewhat normal assumption to think the money is due on Friday but I am not there Friday so I will send it Monday when next there. Not an assumption I would make...but I can see others making this assumption.

Until they have been told that this is not acceptable and that they need to bring the money their last day of care BEFORE the payday then I think it is ok to be forgiving. Now, if they have been told, or it is CLEARLY stated in the contract then they are knowingly in the wrong and the late fees should be charged...but my guess is they are just not seeing it the same way and once told they will be more than happy to send it before payday. I also think it is a bit weird to not charge the late fees last time AND not to have mentioned it and then suddenly charge it now. If they were in the wrong before they should have been told, otherwise they are trained to assume they are in the right.

Just seems like 6 weeks into care if they are in fact just misunderstanding they might be put off by being charged a late fee for something that was unclear and not discussed opening first.

[SillyGirl_C]

Don't give them a break. They need to know the contract will be upheld. Send a friendly reminder and start charging late fees. My stance is that if you bend one rule, the others also look flexible. If they had been there for years, some slack is earned. In this case, by the book. For the record...I am a parent and if my daycare charged me a late fee, well then...guess I shouldn't ne late next time :)

[Busy ECE mommy]

@Lee Bee-I have had 3 cheques so far from this family, and there were no issues with getting it on time for the deposit and November's cheques(3 in total) , and all the cheques cleared fine, so I have not had to deal with late payment fees before with them. The issue is that I was supposed to have 2 December cheques(post dated) for the 1st and 15th, that did not arrive. So even though I'm supposed to have all of them in advance, they weren't technically late until the 1st came and went. I just like to be in control of when the cheques go in, especially if it's a day they don't attend or a weekend/holiday/during my vacation or child's vacation etc. The late payment fees are very clearly highlighted in my contract and on a separate fee schedule for each child. It was also explained during the interview, and they have read my policies on my website. It was my fault for not getting the cheques up front when he started. It is not a case of waiving the late fee last time, and now choosing to enforce it in this instance, thereby creating confusion.

Update: I played hardball with them via email last night after my closing hours, and told them that I would charge the late fees if I didn't have the money last night. They got emails to 2 accounts(mom and dad's). She emailed me about 1 hr later, and said she forgot, and could write the cheque right then. I had to pick it up at their house( 5 mins away) as her kids were in bed, but at least I got it! She apologized profusely. I don't feel bad for being tough on payments, because I have bills to pay too. Oh the joys of being your own boss.....

[bright sparks]

@Lee Bee-I have had 3 cheques so far from this family, and there were no issues with getting it on time for the deposit and November's cheques(3 in total) , and all the cheques cleared fine, so I have not had to deal with late payment fees before with them. The issue is that I was supposed to have 2 December cheques(post dated) for the 1st and 15th, that did not arrive. So even though I'm supposed to have all of them in advance, they weren't technically late until the 1st came and went. I just like to be in control of when the cheques go in, especially if it's a day they don't attend or a weekend/holiday/during my vacation or child's vacation etc. The late payment fees are very clearly highlighted in my contract and on a separate fee schedule for each child. It was also explained during the interview, and they have read my policies on my website. It was my fault for not getting the cheques up front when he started. It is not a case of waiving the late fee last time, and now choosing to enforce it in this instance, thereby creating confusion.

Update: I played hardball with them via email last night after my closing hours, and told them that I would charge the late fees if I didn't have the money last night. They got emails to 2 accounts(mom and dad's). She emailed me about 1 hr later, and said she forgot, and could write the cheque right then. I had to pick it up at their house( 5 mins away) as her kids were in bed, but at least I got it! She apologized profusely. I don't feel bad for being tough on payments, because I have bills to pay too. Oh the joys of being your own boss.....

I'm sure there will be many a provider thinking or saying "Why should you pick it up. I wouldn't pick payment up if I were in your shoes!" I'm just going to say that I am glad you found a solution and quite honestly it sounds like this parent had a human moment, GOD FORBID! Yes it could have screwed your budget up which isn't okay, but it didn't and these things do happen and hopefully from now on she will be better organized. I would be asking for 3 months minimum of post dated cheques to avoid a monthly chase for payment. I do that specifically to give the parents one less thing to think about so regularly and plenty of time to forget should they lose themselves for a moment without payment being late.

[Rachael]

I don't take cheque now but when I first opened I did.

I would require 3 - 6 months in advance, all post dated. Once I got down to just having one or two remaining, I'd request the next batch by e-mail, reminding the parent of the date needed on the first one of the new batch.

Maybe that would be worth thinking about vs having to ask on a monthly basis?

Hi <parent name>, just letting you know that once I deposit today's fees, I only have one cheque remaining for <child's name>. Can you please let me have the next batch of cheques sometime this week please.

The only I have left is dated <date of remaining cheque> so the first one from the new batch needs to be dated <next pay date> and will cover fees from <next pay date> to <final day in pay period>.

Thanks
Rachael

[Busy ECE mommy]

Yes for all my other clients, I have done 4-6months in advance of post dated cheques. It was completely my fault for not getting them before he started, as I felt "pushy" because I felt that perhaps they didn't comprehend my full policies due to a language issue. I'll ask for many months worth in the future.