Feeling very disrespected!

Need some more advice.... I think My niceness is being taken advantage of, the Same family that I have had on going issues with in the past seems to think I don't need to be paid on time.

This family has 2 young children in my care and because they pay $1400/month I agreed on the 30th and 15th payment, payment has been late at times but they always given me days notice and always pays my late fee. I don't allow any of my other family's to pay late ever and make sure payment is in on the 1st!!
Well Yesterday being the 15 I should have received an email transfer with payment, nothing came and around 5pm last night I send mom a text asking if she sent payment yet.
This was her response "Hey. I know I haven't sent it yet. Unfortunately I can't send it till Wednesday. I'm really sorry, I know that it's $10 for each day that it is late and I will include the late charges on Wednesday"
No notice or anything was given to me... I'm so tired of dealing with this family, I know I should terminate them tomorrow but that's a big loss of income for me! Any advice on what I should say to mom on Tuesday?
In feeling so disrespected and taken advantage of!!
:(

Hmmm....maybe up the late fees? Seems that the $10/day isn't a deterrent for them. Wish I had other advice, thankfully haven't had this situation come up.

Do you have anything in your contract about constant late payments being grounds for termination? If not, you could inform them that your contract is changing, and have them sign an updated copy with that clause in it. And I agree with FSD, perhaps up your late fees to make it more of a deterrent. Good luck!

My late fees are 50 dollars a day, so I would send a notice that effective immediately late fees have been raised to said amount. I think that you are making it to easy for them to be late.

Understandably that is a big loss all at once. Do you have a waiting list to fall back on if you decide to terminate them?

If not, I suggest speaking to them ASAP. You need to tell (not ask) them that payment is due in the morning on the 1st and 15th of the month. Explain that you are running a business and in order to stay open, your bills need to be paid!!

I would also suggest changing your policy in regard to payment. For myself, I do not charge a late fee. If a parent doesn't pay on time they are not allowed back until payment is paid (including any missed days because of this!) and if it happens twice, they are asked to find another daycare. I have never had a parent pay late!!

$10 per day is obviously not enough, I'd make it higher if you decide to keep a late fee. Plus, is she paying $10 per child? I'd be charging $20 because she has 2 kids so she's technically late with 2 payments.

Tania, have you thought about changing them to paying weekly....I find it a lot easier....simply if someone forgets to pay me on Friday....they have the weekend to deliver the money....or they don't get back in Monday morning without it....also if someone up and quits on you...you could be out a months pay....(unless they pay in advance of course)...just a thought...but ya...I would up the late payment...and maybe you should put them on a "paying in advance "...plan.....I ask to be paid Friday morning....if they don't hand it over in the a.m...I send them a text during the day to remind them I want to be paid Fri morning....and they will definitely have it at pick up time....honestly though....WHY DO WE HAVE TO REMIND THESE PEOPLE....drives me crazy....

Increase your late payment fees-mine are $40 a day. Also, if they don't pay, they don't stay. Turn them away at the door and care is discontinued until the payment is in your account. The late fees should also be per child, not per family-$10 is not enough, and even so, should be $10x2 kids=$20. Revise your contract with the changes asap and get them to sign it. I can terminate after even 1 late payment. I've only had it happen twice in 6 years-and they had it to me by the end of the day it was due.

Message them - tell them that the late fees are for exception not for routine. That you helped by agreeing to pay days they wanted but you have bills too and it no fine for them to keep making your bills late.

Tell them that you will be increase their late fee if this continues to be routine because $10 is not cover your bank fee when your own bills not being paid on time. Either that or tell them that constant late will mean you have to terminate because your bills are your priority not theirs. It too much and too often. They would not be allow to pay mortgage or car loan late, why okay you always paid late.

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Originally Posted by Suzie_Homemaker

They would not be allow to pay mortgage or car loan late, why okay you always paid late.

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I agree. If you pay your electricity bill late all the time, they cut or limit your power. If you pay your mortgage late constantly, they take your house. It should not be any different when it comes to paying us.

I also have it in my contract that it is $X/per day, for late payment and care will not resume until all fees owing are paid in full. No pay, no care.
I got sick of hearing excuse after excuse why they couldn't get the fees paid on time. I have a responsibility to my family and have to pay my bills on time!

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Originally Posted by mattsmom

I also have it in my contract that it is $X/per day, for late payment and care will not resume until all fees owing are paid in full. No pay, no care.

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Me too. Late fee is not much but I can say no money, no care, until all due amounts fully paid, children are refused access. If you do this, be careful because super sneaky ones will slide in when you busy with another, call out they are dropping and rush off. You have to lock door so super sneaky can't drop off when you distracted.

Up your late fee. I charge $20. If she has 2 kids it would be double as 2 payments are late. I have a clause stating failure to pay on time may result in termination of care. My payday is every second Friday. I have no issue asking parents for their cheque before they walk out the door. Sometimes they just forget and have it in their pocket. My late fee begins at noon on Friday. No I will not wait until pick up to be paid. I have had a few forget their cheque and let me tell you after dishing out an extra $20 it makes them remember next time.

Part of my career is collecting payments. From my vast experience, I can verify that those that take advantage will continue too. You need to decide whether the issue is enough to justify termination and if you would be able to backfill the spots. The end result is that if you threaten termination, withholding of care etc. you need to be prepared to execute those options. If not, or you soften the line, you won't stand a chance if try to take additional measures later.

You could ask for post-dated cheques maybe 6 months at a time and then you have more control over paying your bills on time No more late fees and no excuses too