Late payment fees

[Fun&care]

I'm wondering what you all charge as a late payment fee? I've recently upped mine from 25$ to 40$ but a prospective client commented that it didn't "sit well" with them, that 40$ is too high...so I am second guessing myself a bit and would like to know what you all charge. Payment is due every Friday by closing time. I just got so sick and tired of running around for payment and I felt like if I upped the fee it would "hurt" a bit more and discourage lateness. My first thought was that I'm not sure why the late fee was such a big deal unless they were planning on being late....Thanks in advance!

[gravy_train]

I instituted a high late fee about a year ago. I charge my daily rate ($45) per day of late payment fee, and I actually charged 2 of my clients (the ones who were repeatedly late with payments) the late fee. Don't look back - you did the right thing!

[Lee-Bee]

That's the point :-( it gets their bum in gear so they aren't late and never have to pay it!! It's not an extended day fee...it's to make them feel the pain of being late!

I'd worry about any potential family that comments on the late fees...kind of implies they expect to pay it!

[mickyc]

I charge $15 for a late fee. My payment is due Friday at drop off. Late fee begins at noon on Friday and accumulates every day until payment is received. I have only had to charge it once and it has never happened again.

Personally if I had a family say it was too much then it would be a huge red flag. If you pay on time then you will never have to pay it end of story.

[Crayola kiddies]

Mine is $50/day

[Busy ECE mommy]

Mine is $40 a day. If they don't pay late, the $40 shouldn't be an issue LOL. Stick to your guns!

[Lou]

I don't get what his problem is. Simply say, "This won't be an issue for you at all as long as fees get paid on time, so no worries" all casual. Tough beans, pay your freaking childcare provider on time. lol.

[5 Little Monkeys]

If they are worried about the late fee that is a HUGE sign that they are thinking there will be times they have to pay it. That's not okay with me.

I don't have a late fee because I don't have a problem with parents not paying on time but if it became an issue, I would put one in and charge a full days rate per day and wouldn't have an issue charging it. If you want $40 as the late fee than stick to it, those that will appreciate and respect you will not have an issue with it.

I have in my contract "You do not beg for your paycheque, please do not make me beg for mine" and I think it has helped from having this issue in the first place. I also state that one time being late, your child can not attend until it's paid in full and if your late two times you will have to find alternate care.

[Fun&care]

Thanks everyone...feeling reassured Her comment most definitely did raise a red flag. Man am I ever glad I do lots of pre screening now...this stuff used to come up in interviews but recently I have been sending out my Handbook to read BEFORE we set up an interview and it has been the BEST THING EVER. No more wasted time over families that would have never been a good fit anyways.

Thanks again!