Breaking Contract already...

Hello, I am in need of a little advice as I am unsure how to approach this issue with a new client.

I just started a new client last week and am having issues regarding payment from parents end.

She required care immediately, we had an interview saturday and already brought her child to me monday. I emailed her the contract to read over during the weekend so she could sign it first thing monday morning at drop off time. Which she did.

In the contract it stated that I did require payment in advance for 2 weeks and when payments were due. Monday came and she asked me if she could pay me friday for that week of care. I agreed but then said that I would require payment for that week and the following 2 weeks. Thursday yet again she asked me how much I owed her. I gave her a breakdown and a total. My total included last week and the following two weeks. Came friday and she paid me, BUT ONLY FOR THAT WEEK OF CARE, NOT 2 WEEKS IN ADVANCE AS WELL AS I ASKED. I accepted the payment but then nicely reminded her I needed the advanced payment for the following two weeks monday.

I am truly having a feeling monday she will not pay me again and just want to pay me at the end of each week. I would rather have advanced payment as I fear a customer dropping off their child for care and then one day just not showing up and I haven't received payment (this happened very recently to a friend of mine)

How would you handle this situation?
I have already deviated from my contract too many times, if she's not respecting the contract then what's the point of even having or signing one?
I am thinking of sending her a text message tonight and reminding that I need payment tomorrow...

Thank you, advice would be greatly appreciated.

Do you have a late policy in your contract? If not add that in ASAP.
As soon as you read this send her a nice email stating what balance is due tomorrow and if she doesn't pay care will be refused when she try's to drop off her child to daycare. This is your business and the perk of that and picking when you want to get paid not when she wants to pay you.

For me payment is due on Monday even if a child is not attending and if that payment is made past 12 pm then a 20 late fee is applied. If payment in not made in the morning so sorry no pay no stay. I do not chase parents for payments if they can remember to drop their child off then they can remember the payment, after all daycare isn't free. You have to be firm in this business I was like you when I started and I got taken advantage of ALOT and I know sometimes it can be hard but you give an inch they take a mile. Good luck :)

If she shows up with out payment, turn her away. Let her know that she can't enter the daycare until it is paid and that she still has to pay for any days she misses until payment is made in full.

Also look into charging a late payment fee.

Unfortunately some people see a favor as a sign that they can walk all over you. You let her pay late once so she seems to think it can keep on going.

Text her now. Tell her payment is due for the following 2 weeks at drop off or you will not accept her child into care and will consider it a breech of contract and termination will be effective immediately.

Any idea why she needed care immediately? Did the last daycare get fed up of her doing stuff like this?

Stand your ground now and terminate if need be or you are likely in for a lot of headaches.

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Originally Posted by Lee-Bee

Any idea why she needed care immediately? Did the last daycare get fed up of her doing stuff like this?

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I was told child had been in a centre in the past but recently care had been provided by a family member

I will contact today, thank you I'll let you guys know how this works out.

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Originally Posted by Cindydaycare

I am truly having a feeling monday she will not pay me again and just want to pay me at the end of each week. I would rather have advanced payment as I fear a customer dropping off their child for care and then one day just not showing up and I haven't received payment (this happened very recently to a friend of mine)

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Time for client to try and negotiate is before contact signed. There is now contact in place which say you paid two week in advance.

Parent have one job only in child care. To stick to contract. It not matter what your reason for wanting advance pay is, what matter is this was the agreement and she not sticking to it.

The down side of running a business is dealing with the business matters. This client is defaulting in payment out the gate and you enabled it. Must not do that.

When Monday come, if she not got her fees, then you should deny care until that fee is paid. Have responsibility to mitigate losses. Power company cut off service if payment not made. Mortgage company take back house if payment not made. Car loan company take back car if loan not paid. She would not be able to walk away with her groceries if she not paying at check out. Stop providing service if payment not made in advance otherwise, as you say, big risk at end week, you worked 50+ hours, provide 10 snack and 5 lunch and not get paid. Her finances not your problem. Your business finances 100% your problem.

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I have already deviated from my contract too many times, if she's not respecting the contract then what's the point of even having or signing one?

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She is not respecting contact because you told her that contract not have to be followed when first week she not have money in hand. You gave permission to ignore contract so she now expect that it guideline and delay acceptable. If you not end this now, it will not change.

You have told her two week pay due tomorrow. Ball in her court now. If she come tomorrow without it, expecting another delay, that your golden opportunity to remind her that fees due in advance, deny care at door, and she can go get fees and return with child, which what your agreement was.

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I am thinking of sending her a text message tonight and reminding that I need payment tomorrow...

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No. This bad idea. If you get in habit of reminding client for money, the responsibility of payment on time, moved from her to you. Then, if you forget send reminder, even though she remember, she will hold onto fee until you remember and it be your "fault" money not sent when should be.

She grown person. She responsible for keeping finances straight. She not get reminders for other bills because it her responsible for pay on time. Do not take on her responsibilities.

Also, if you do this, and she not have money, it give her time to find alternative care with grandma or family friend. You are showing all your card if you message her today. You have power when she fail to bring fund, has child on doorstep and need get to work. That big incentive to get act together.

If she really not have money even in her account, then you turning away not going to change her finance situation. But providing free care will show her she setting terms again and contact not going be enforced. What will you do when she come late for child, after all, if contact just guideline, it no problem for her not pick up until 8pm, right?

I would text her now to remind. And also say if payment is not with u at drop off care will not be available. And don't offer care till you get the $$$. If no text reply from her tonight and she shows up tomorrow without $$. Kindly remind her of what is owed, that u texted her to remind her (keep text to prove it) and turn her away and say no care till $$$ is recieved.

Did you get fees?

I would have sent a text ASAP and reminded that care is paid in advance and that you wouldn't be accepting her until fees were paid in full.

How did it go this morning??

So curious too did you get paid?

Also wondering!! :D

Why don't you take 3-6 months of post dated payments. No pay, no stay. Turn her away at the door. Start looking for a new client. Payment issues this early is a big red flag.

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Originally Posted by Cindydaycare

Hello, I am in need of a little advice as I am unsure how to approach this issue with a new client.

I just started a new client last week and am having issues regarding payment from parents end.

She required care immediately, we had an interview saturday and already brought her child to me monday. I emailed her the contract to read over during the weekend so she could sign it first thing monday morning at drop off time. Which she did.

In the contract it stated that I did require payment in advance for 2 weeks and when payments were due. Monday came and she asked me if she could pay me friday for that week of care. I agreed but then said that I would require payment for that week and the following 2 weeks. Thursday yet again she asked me how much I owed her. I gave her a breakdown and a total. My total included last week and the following two weeks. Came friday and she paid me, BUT ONLY FOR THAT WEEK OF CARE, NOT 2 WEEKS IN ADVANCE AS WELL AS I ASKED. I accepted the payment but then nicely reminded her I needed the advanced payment for the following two weeks monday.

I am truly having a feeling monday she will not pay me again and just want to pay me at the end of each week. I would rather have advanced payment as I fear a customer dropping off their child for care and then one day just not showing up and I haven't received payment (this happened very recently to a friend of mine)

How would you handle this situation?
I have already deviated from my contract too many times, if she's not respecting the contract then what's the point of even having or signing one?
I am thinking of sending her a text message tonight and reminding that I need payment tomorrow...

Thank you, advice would be greatly appreciated.

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After she hands you her payment on Friday, that's the time to talk to her and put emphasis on the contract that was signed.

Maybe the lady doesn't have money enough to pay for 2 weeks in advance, plus the current week. She could be living from pay cheque to pay cheque....we never know.

If you're willing to bend for her.....you could accept an advance of one week to be paid on two consecutive weeks or (pay day weeks). Insist to get paid on Mondays - before rendering any service.
But make sure to let her know that on Monday, if you don't get at least one week advance payment (plus the payment for that week), you'll be forced not to accept her child.
Do the same on the next agreed date of payment.

You should at the very least, insist on getting paid before you render any service, otherwise not only is there a possibility that you won't get two weeks notice, it is also possible that you will have to chase her for payment for services already rendered.

It is a possible that she will not show up at all after that talk.

I ask for a deposit for this reason. I require 1 week payment to register for a spot and then another 1 week payment within the first week of care. I'm paid biweekly on Fridays by the end of the day. I give them an invoice the Monday of that week. I also have a sign that I put up Friday morning that is red and says payday!

Specific to your issue, if she doesn't have the money on Monday I would refuse care until she does or you make some sort of arrangement.

How did it go?

Wow, first of all I'd like to thank you all for all the responses, your input definitely boosted my confidence in order to approach the customer.

She came on monday and had payment only for that day, said that by pick up time she would have the payment for the 2 weeks. I agreed to have her child for the day and told her only because she had the payment for the day would I agree to do it. At pick up she did have the money for the two weeks.

I talked to her and she said it would be easier to give me advance payment for one week at a time. I agreed although upset that she would agree to a contract that she knew she wouldn't keep even after I mentioned if there are any troubles and concerns with the contract she could talk to me about it. SO I had to reprint and get the new contract signed.

So everything is ok.