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  #1  
Old 04-05-2011, 01:43 PM
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MNmamaOf4 MNmamaOf4 is offline
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Default What's Your Payment Policy?

Currently my payment policy states that payment is due at the end of the week on their last day of care, but I'd like to change this before I have more families enroll. I want them to pay at the beginning of the week. I need help with wording.

Thanks!
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  #2  
Old 04-05-2011, 01:51 PM
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Tuition policies and Finances:

Payment obligations are based on the hours that you agree to use the childcare, not on actual attendance. Payment is due whether your child is present or not. This includes sick time and vacation time. Remember, you are paying for a spot for your child as each spot must be secured by your on time payment.

All fees are paid one week in advance and are due on the last day of the week that your child attends care.

Tuition will be considered delinquent if not paid by closing on Friday at 6:00 PM and a $50.00 late fee will be charged to your account. ***NOTICE**** Your child will not be able to return until all fees, including late fees are paid in full! If all fees are not paid after one week, your child will be dropped from the daycare and there will be no refunds due to you.

Payments are to be paid directly to the provider. Do not leave payment with provider's family members or anywhere else.


**There will be a $25.00 charge for any returned checks for non sufficient funds and checks will no longer be accepted.
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Old 04-05-2011, 02:16 PM
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Oh my word! I would never dream of accepting payment after the care has already been provided. That is just asking for trouble. From the beginning, I have always asked for payment in advance. Here is what I say in my policies about payment:

"Payment Information

Payment for childcare is expected by 6:00 pm Fridays for the upcoming week. Your weekly payment is expected by 6:00 pm whether your child attended my daycare that Friday or not. A late fee of $10.00 a day will be charged daily, beginning at 6:00 pm Friday, for every day you are late on your payment. I count on my daycare income to pay bills that are necessary to operate the daycare. Your weekly fee holds one position open in my daycare that is for your child only. I turn away other parents who need care in order for your child to keep their position. If I do not receive payment, I can not hold a position open for your child in my daycare. If you fail to make a payment for 2 consecutive weeks, you will forfeit your child's position in my daycare and their position will be filled.

Please call me by 7:00 am on any day wherein your child will not be attending my daycare so I can plan my day accordingly.

There is a $25.00 fee for checks written on insufficient funds, stopped payments or any other reason your check doesn't clear the bank. You will also be responsible for any additional bank charges that are incurred through my bank."

I hope this helps!
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Old 04-05-2011, 02:18 PM
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Welcomne to the Forum Mandy!
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  #5  
Old 04-05-2011, 02:28 PM
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Quote:
Originally Posted by Mandy_Jane View Post
Oh my word! I would never dream of accepting payment after the care has already been provided. That is just asking for trouble. From the beginning, I have always asked for payment in advance. Here is what I say in my policies about payment:

"Payment Information

Payment for childcare is expected by 6:00 pm Fridays for the upcoming week. Your weekly payment is expected by 6:00 pm whether your child attended my daycare that Friday or not. A late fee of $10.00 a day will be charged daily, beginning at 6:00 pm Friday, for every day you are late on your payment. I count on my daycare income to pay bills that are necessary to operate the daycare. Your weekly fee holds one position open in my daycare that is for your child only. I turn away other parents who need care in order for your child to keep their position. If I do not receive payment, I can not hold a position open for your child in my daycare. If you fail to make a payment for 2 consecutive weeks, you will forfeit your child's position in my daycare and their position will be filled.

Please call me by 7:00 am on any day wherein your child will not be attending my daycare so I can plan my day accordingly.

There is a $25.00 fee for checks written on insufficient funds, stopped payments or any other reason your check doesn't clear the bank. You will also be responsible for any additional bank charges that are incurred through my bank."

I hope this helps!
I live in an extremely small town, less than 250 where everyone knows everyone and all of the contracts I looked at from providers in the area they got paid at the end of the week, so that's what I went with. But now that I've done it for a few months I'm finding the things I want to change in my contract. I appreciate you sharing your policy! It helps a lot!
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Old 04-05-2011, 02:38 PM
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Quote:
Originally Posted by Mandy_Jane View Post
Oh my word! I would never dream of accepting payment after the care has already been provided. That is just asking for trouble. From the beginning, I have always asked for payment in advance. Here is what I say in my policies about payment:

"Payment Information

Payment for childcare is expected by 6:00 pm Fridays for the upcoming week. Your weekly payment is expected by 6:00 pm whether your child attended my daycare that Friday or not. A late fee of $10.00 a day will be charged daily, beginning at 6:00 pm Friday, for every day you are late on your payment. I count on my daycare income to pay bills that are necessary to operate the daycare. Your weekly fee holds one position open in my daycare that is for your child only. I turn away other parents who need care in order for your child to keep their position. If I do not receive payment, I can not hold a position open for your child in my daycare. If you fail to make a payment for 2 consecutive weeks, you will forfeit your child's position in my daycare and their position will be filled.

Please call me by 7:00 am on any day wherein your child will not be attending my daycare so I can plan my day accordingly.

There is a $25.00 fee for checks written on insufficient funds, stopped payments or any other reason your check doesn't clear the bank. You will also be responsible for any additional bank charges that are incurred through my bank."

I hope this helps!
I used to have this same policy $10.00 per day late fee, that is until I ran into a family that wanted to come bring payment on the weekend. Which lead into a family leaving payment on my door step because I was not home. I know that it is best to word things as simple as possible, but it seems like someone always finds a way around things or does something that caused me to revise my PHB.
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  #7  
Old 04-05-2011, 02:46 PM
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MNmamaOf4 MNmamaOf4 is offline
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Quote:
Originally Posted by daycare View Post
Tuition policies and Finances:

Payment obligations are based on the hours that you agree to use the childcare, not on actual attendance. Payment is due whether your child is present or not. This includes sick time and vacation time. Remember, you are paying for a spot for your child as each spot must be secured by your on time payment.

All fees are paid one week in advance and are due on the last day of the week that your child attends care.

Tuition will be considered delinquent if not paid by closing on Friday at 6:00 PM and a $50.00 late fee will be charged to your account. ***NOTICE**** Your child will not be able to return until all fees, including late fees are paid in full! If all fees are not paid after one week, your child will be dropped from the daycare and there will be no refunds due to you.

Payments are to be paid directly to the provider. Do not leave payment with provider's family members or anywhere else.


**There will be a $25.00 charge for any returned checks for non sufficient funds and checks will no longer be accepted.
This helps a ton, thanks!
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Old 04-05-2011, 02:50 PM
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Quote:
Originally Posted by MNmamaOf4 View Post
This helps a ton, thanks!
oh yeah and the family that claims that they left the payment on the door step was never found. There was no proof and ended up with one week of no pay. However, it did not happen again after stopping them from coming on the weekend to drop payment. Daycare is not open on the weekends so no payments are excepted during weekends.
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  #9  
Old 04-05-2011, 03:14 PM
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Thank for the welcome Michael!

Even if I was in a small town, I would still not take children without having been paid first. But, if that's how you choose to do it, that's fine. I'm just speaking for myself and knowing the risks that come along with geting paid after care is provided. I actually never enforced the $10.00 a day late payment for someone who at least paid me by Monday morning. But, if it was any later than that, I would let them know they owed extra. I never had any probelms with that policy, but I can see how it might cause problems with people who want to bring the payment on the weekend. I guess I should add that payments are not accepted on the weekend, but if they call to let me know they have payment ready, that day's late payment will be waived. In all actuality, I very rarely enforced my late payment. I don't know if I EVER had a parent who did not notify me that the payment would be late. And if they did that, I would try to work with them.

I mainly have that late payment info in my contract so that if someone just withdraws their child with no notice, I can uphold that late payment fee in court. And I sure as heck would if someone left without proper notice! Good luck on whatever you decide to do!
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  #10  
Old 04-05-2011, 03:26 PM
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Payments must be in the diaper bag each Monday morning (prior to the weeks daycare). No exceptions.
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  #11  
Old 04-05-2011, 03:30 PM
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Quote:
Originally Posted by Mandy_Jane View Post
Thank for the welcome Michael!

Even if I was in a small town, I would still not take children without having been paid first. But, if that's how you choose to do it, that's fine. I'm just speaking for myself and knowing the risks that come along with geting paid after care is provided. I actually never enforced the $10.00 a day late payment for someone who at least paid me by Monday morning. But, if it was any later than that, I would let them know they owed extra. I never had any probelms with that policy, but I can see how it might cause problems with people who want to bring the payment on the weekend. I guess I should add that payments are not accepted on the weekend, but if they call to let me know they have payment ready, that day's late payment will be waived. In all actuality, I very rarely enforced my late payment. I don't know if I EVER had a parent who did not notify me that the payment would be late. And if they did that, I would try to work with them.

I mainly have that late payment info in my contract so that if someone just withdraws their child with no notice, I can uphold that late payment fee in court. And I sure as heck would if someone left without proper notice! Good luck on whatever you decide to do!
I know that this is not an issue now, but it may be in the future. I would add something to your PHB that will protect you in the future as well. No one can predict the future.

just a friendly word of advice...lol
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  #12  
Old 04-05-2011, 06:30 PM
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I have a payment drop box in the coat room. All payment is due by Friday 5pm for the next weeks care. I would love to change this to 8am Friday so I could get all checks to the bank before the weekend and not have to hold on to them over the weekend (i admit it I sleep in on Sat and dont get to the bank before noon) I also one parent who pays one month at a time and two that pay two weeks....both are in advance. I also have a 10 late fee and a return check fee(never needed) but honestly have not had to use it in years. Stick to your guns from the start never let anythign slide and they will learn that the rules are the rules and they won't 'forget'

NEVER provide care with out advance payment.
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  #13  
Old 04-06-2011, 06:16 AM
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Default thank you

I just want to thank you for all of your great advice. I'm currently in the process of changing my policy as I type this. I appreciate all of your great input. I wanted to get this changed before I take on more families. Currently I have 1 full time and 1 very part-time.
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  #14  
Old 04-06-2011, 08:31 PM
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Quote:
Originally Posted by MNmamaOf4 View Post
Currently my payment policy states that payment is due at the end of the week on their last day of care, but I'd like to change this before I have more families enroll. I want them to pay at the beginning of the week. I need help with wording.

Thanks!
Do you want to be paid on Monday morning or on Fridays? If you do it Monday mornings parents might forget and soon it will be Tuesday and you're half-way through the work week without pay. Your current two families must be paying on Friday after care has been provided. I think sticking to Fridays would be best and keep the routine. Figure out a payment schedule and divide it by four to give the current two clients one month's time to pay in advance. If you charge $100/week then add an extra $25 to your current two families bill for the month and then they would be paying in advance. Re-write your contract so it states they pay in advance and have your current and new families sign it.
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  #15  
Old 04-07-2011, 11:14 AM
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I changed making my payment about 7 yrs. ago, I get paid on Mon. of that week for the entire week. It works very well this way.
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