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Creating Acceptable Payment Arrangements For Your Daycare

Learn How To Create Acceptable Daycare Payment Arrangements

Learn How To Create Acceptable Daycare Payment Arrangements

In the business of childcare, we have to be very good managers of our weekly rates. I really consider childcare business owners to be very caring and understanding. But I know that sometimes parents can take our kindness for weakness and you then find yourself emotionally hurt and financially overdrawn.

To avoid the emotional agony and to keep your income and expense manageable,  you will need to have a payment- arrangement system in place.

When creating this system, keep in mind that a healthy daycare business operates with 5 percent or less in fees that are not paid on time.

It’s vital to gauge the length of time you will allow your business to provide a service on a promise to pay.

My No.1 secret:  Only make arrangements for clients who have made two to three months of consecutive payments on time. Making arrangements with new parents always ends wrong.

Steps to creating a payment arrangement:

  1. Select a day your payments are due
  2. Send friendly payment reminder notices out the day before payments are due.  Include a clause for parents to contact you if they need a payment arrangement.
  3. Create a payment arrangement form including a space for parent’s names, amount to be paid, date to be paid, your courtesy payment- arrangement fee, and a clause that if payments are not made by the due date, no other agreement can be made and the enrollment agreement will be terminated.  You and the parents sign it.
  4. Enter the payment agreement within your software or accounts- receivables notes.
  5. Create an alert system so  you or your staff can remember the arrangement due date.

This system should then become a part of your payment collection system.

To get Andrea’s Full Payment System and So Much More Check Out The Childcare Success Developing Management Systems Kit@https://iownadaycare.com/childcaresuccesskit/home/

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