Recently, I have been asked the following question by many Child Care Business Owners: How do I get parents to pay on-time?
This is a tricky question, because it takes many different strategies to get parents to pay on-time and today I want to share one strategy with you that I use every week to let parents know that I am serious about collecting payments on-time and that is by posting a Tuition Due sign!
Every Monday I display my Tuition Due sign on the sign-in table where parents can see it. Also in small print you will see the words: If you have already paid your tuition for this week, please disregard this notice.
Having a Tuition Due Notice displayed on your sign-in table is a great way to enforce your tuition policy and also a great way to remind parents that payment is due.
To create your sign, simply type your notice using a Microsoft word program (use a very large bold font) and be sure to print the notice on a piece of yellow or orange paper. Then insert the notice in a plastic sign holder stand and display on your sign-in table. (you will find sign holders at your local Office Supply store)
Handling Delinquent Families
In the event that a parent fails to pay you after leaving the program, you have a right to send that family to collection or even collect your fees in small claims court. However, be sure that your failure to pay terms are clearly defined in your childcare payment agree and that you verbally tell parents about your collections procedures upon enrolling their children.
I hope this tip has inspired you to get diligent about collecting payments on time and you can start by creating a Tuition Due sign. On-time Payments= Consistent Cash Flow in Your Business.
Happy Tuition Collecting…..