At enrollment I require payment for the last week of care, a $50 annual supply fee, and $30 one-time Registration Fee; this in addition to the fee for the first week of care. I do allow them to payout the last week, supply fee, and registration fee upon request. I require a 3 week notice, the last week has already been paid at enrollment.
My parents pay on Friday for the upcoming week. No payment by Monday morning, no care.
Even with my policies I have lost money too, but not enough to bother with the hassle of taking them to court.
If they write a hot check and don't make it good, you just report them to the local police. You won't get your money, but a warrant will be issued for their arrest and it will remain on their record. My parents have to pay with money order or cash if bad checks become chronic.
Now, here's what you
can do and has proven effective for many a provider.
It's easy, but you may not get the money owed you quickly. Depends on the time of year.
If the amount of money they have paid you is significant, they will call you around the first of the year requesting a W-10 for tax purposes. Refuse to provide it until they fulfill the terms of their contract. Works like a charm.
If your parents provide a port-a-crib or other equipment, as mine do, withhold that as well until payment in full has been received. I have acquired several expensive pieces of equipment this way, which were equivalent to the money owed.
Providers should require references from potential clients. They expect references from us, and we're heavily scrutinized. The prospective client should be as well, imho.