Are you having problems getting parents to pay their tuition on time? When parents do not pay tuition on time, this affects your cash flow. To assure that you maintain control over your cash flow, you must develop a written payment policy that makes it clear that parents are expected to pay on time. Moreover, when parents pay on time, you are able to service them better.
My first year as a childcare provider I noticed that most parents paid on time, however, there was a selected few that did not. Those were the parents that I had to constantly remind them to pay tuition. It was quite annoying, I thought if parents remembered to bring their children to the program, that they would remember to pay. That was not the situation with several of my parents. It was time for me to be firm and consistent with my policies. It was when I chose to be firmer and consistent with my payment policy, that parents began to pay on time.
Here are two simple steps that you can take to assure that parents pay on time each week and to assure weekly cash flow into your child care Business.
Step 1- Create a written policy that states when tuition is expected to be paid. For example: Tuition is expected to be paid on Monday mornings of each week in the form of cash, money order or by credit card. When tuition is not paid when due, there will be a late charge. * Also specify, who payments should be issued to such as Childcare Provider, assistant, secretary, etc . A Payment box is also a great way to collect payments.
Step 2- Post your payment policy. When you post your payment policy, parents are able to see it as they enter and depart your program. Also, when there is a question about the policy, it is readily available and posted on the wall.