Late in payment

I've had my daycare for 2 years and never had a problem with a family paying me on time..until now.
I honestly think that it is just forgetfulness as we chit chat at the door on Friday's and both of us will forget about payment. Most times I remember to comment, her cheques are at home. They will always offer to drive the money to me on the weekend ~ love this family, so nice however, being my weekend I prefer to not see anything daycare related until Monday :laugh:
I have spoken to them and advised them that it has happened too many times ( almost every other week for the past few months) and moving forward I need posted dated cheques or email money transfers. They feel bad and have said sorry and apparently they will be doing up some cheques for me to keep on file- month at a time.
My question is, does anyone have anything in their contract that states that after so many late payments there is some kind of late fee?
I was thinking of putting this in my contract moving forward. Thoughts?

If you notice this is happening sort of every two weeks think about when they get paid. For some like my husband it is the 15th and 30th but if I get paid weekly by my parents there is a chance that the third or fourth week of the month is before they are getting paid. They may be afraid to date a cheque for Friday in case you rush to the bank to cash it but they haven't gotten their pay deposited yet or like some banks they hold it so they can't access the money till next banking day - 3 days for some people. If that is the issue then try to get them to be honest and work out a schedule accordingly.

Having them do the transfer would be the best but maybe change the payment due dates so there are a few days for being forgetful. That is why I changed payment to Monday from Friday with the idea if they forget they have 4 more days to get the money to me or come up with 4 excuses why it isn't there. Yes there is a $5 a day late fee so an extra $20 a week. If there is no money by Friday there is no care on Monday without cash for the week before and the coming week.

I had posted before about changing pay dates from Friday to Monday and moving forward with new clients, I've taken everyone's advise to move the date. As you mentioned, they have to pay or face me the next day without it...
I think it might be too difficult to change pay date on my current daycare families. Paying me on Friday for the week that just went by and then the following Monday again for the next week. Might makes things tight for them??
I don't think money is an issue with this family ~ they travel and currently doing renovations on their home.
I like the idea of $5 late fee ~ that can add up quickly and give someone incentive to pay up when it's due. Thanks :thumbsup:

I don't know if a late fee works...or I guess I have never heard of it.

When I had my kids in daycare I was the forgetful mom. I would go to work, have the cheque waiting on the ledge filled out and forget it as I rushed out the door. Then at night I would suddenly realize "Yikes - today is the pay day"

I would apologize profusely and ask if I could bring it the next week or whenever.

anyways...I wasn't doing it on purpose but I guess it happened a few weeks and then the third or fourth time by provider said that she actually needed the cheque, was concerned that it was becoming a habit and asked if I could drive home and get it and bring it right back. Like NOW.

I left with my tail between my legs...had to drive to my house...then back track to the daycare (about 10 minutes each way) and give her the cheque.

I think she did it on purpose to teach me a lesson - and you know what ? It worked. I was sooooooooo careful after that because the last thing I wanted at the end of my day was to have to drive 20 more minutes and spend time and gas getting a forgotten cheque.

I don't think she desperately needed the money that night but she was teaching me that she had enough of these senior moments and what would happen if I forget.

I think judy says that people do what is convenient for them. The Provider made it inconvenient for me to forget and I got much better because I didn't want to waste my time.

Anyways....that was what happened to me and I would recommend that to anyone who has issues with continually late payments. Ask them to go home and get it and bring it that same night because you need it and were counting on it and see if it gets better.

I've never heard of a late payment charge either ~ just trying to come up with a way to deter future happenings.
I have told her to go back one week as we were using daycare money for groceries...little snug that week. She has done it since. As I mentioned I love this family and solved the problem with them as I approached them and said moving forward I need email money transfers or post dated. They were no problem with it.

I never forgot payment for my daycare provider ....I know I relied on my pay and I do even more so as I don't make the type of money I was in my last job. I was just trying to come up with a way to deter it happening with another family. If it was you ladies ~ would that make you go mmmmmm when you read it before signing for having your little one in my care. just wondering how it comes across?

I have a $20/day late fee, plus with each day that they don't come with the money, they don't get to leave their child with me. Let me tell you - I've only had to use it once (and it was a strike in my 3-strike policy). AND....they didn't do it again!

All of my clients currently pay monthly and have provided me with post-dated cheques for 6 months to a year...so zero issues with forgetting. The other client pays bi-weekly, but has it direct debited from her account to mine...again no forgetting possible. I actually don't have it in my contract, but the clients all preferred to do it this way. Maybe you could have a three late payments and then you will need to provide post-dated cheques policy.

With regards to late payment for fees ... I have only ever had to charge it once with a client who had 'forget' on more than one occasion and I 'waived' the fee and said it was ok to wait til Monday out of empathy that yes on occasion we do honestly 'forget' cause of other stresses in our live - however like often happens when a business does 'special' for a client they start to EXPECT that as part of the service and well it became a HABIT for her to forget and well I like having the policy to be able to say 'unfortunately you have used up your 'grace' and effective this payment you are going to be charged $20 if you are late in the future' ... when there came a 'penalty' for her behaviour suddenly she felt better giving post dated cheques so she would not have to 'remember' - something I had suggested the second time she 'forgot' .... had I kept just letting her 'forget' my guess the behaviour would never have changed there had to be a consequence for 'forgetting' that motivated her to change the behavior .... and that is why I have a late payment policy - cause it DOES motivate people to never forget ;)

I just implemented a late payment fee. It is hefty! I charge $35 initially, then $20 a day for every day after. I was sick and tired of one family "forgetting" to pay me EVERY week. I sent out a group email, insisted they confirm that they read and agreed to it before coming back to daycare, and they all did. The late family took a few days to respond. She thought I was "stern", and didn't understand why I was so upset. I told her that I wasn't being stern, but assertive. It all worked out, and they haven't paid late again. :)

I don't have a late fee charge because I haven't had any problems with this in the past. It has happened once in a while a family will forget to go the bank but they will go there and come right back, or if they call in sick on the Friday I tell them it's ok for them to bring the money on Monday.

In your case, you should make a change definitely. Can they pay you for 2 weeks at a time and simplify the problem? Or postdated cheques that you can keep in your possession? I would be ticked off too if they were doing it every other week no matter how nice they may be.

Although I can't remember off the top of my head WHAT the terms are; yes, I do have a late fee in my contract. I also charge in advance of care (means I never get stiffed/shorted) and have clearly stated that I will turn them away at the door if payment has not been received.
Having said THAT: I will implement these policies as I see fit. Only once have I charged that late fee, because it was becoming routine for this family. One of my families always used to "forget" their cheque, so I asked for a set of 6 post-dated "so I didn't have to keep hassling them", hahaha. If I have a number of new families in attendance, I will post a note at the end of the month ie; Please remember that fees for next month are due this week. Thank you!
If a family was truly strapped for cash (Paycheque comes on the third, and I am to be paid on the first, etc) I would hope that we have a good enough relationship that they will be honest with me. In those cases, they get one "gimme" and after that, too bad, I better have my money in hand or no daycare for you!! After all, how would they like it if the HR dept at their work said "Oh, oops. Guess I forgot to do the paycheques this week. You'll be okay if I get it to you sometime next week?" Somehow, I think not!!

Thanks ladies ~ moving forward I think I am going to put in my contract a late fee after 3 late/missed payments on the due date - $20 each day it is late.
I agree, sometimes we forget with our minds on work, dinner and kids all at the same time! Having said that, I agree with you Reggio that sometimes it can become a habit...and that is a habit I don't want to encourage!!
Thanks for the advise ladies :thumbsup:

I know people are busy and they can forget BUT there at ATM machines alllll over.:D
So if they show up and forgot the $ they have the option of turning around to go get it now or face my 3 strikes and you are out policy.

I don't charge late fees, I terminate.;)