Late payment issues

[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.

[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.