As the owner of a child care business, you have undoubtedly run into issues with particular parents. Most likely around issues with paying their child care payments on time. While you may allow some leniency for certain situations, late payments can cause problems with your business’s cash flow. Ultimately this can become a detriment to your child care centers continued success.
You need to ensure that as a business you are getting paid on time. Late child care payments being quickly rectified is of critical importance. There are a number of preventative measures you might take to instill the importance of on-time payments. This will make it easier to collect late payments without too much hassle.
Business Management Tools for Payment Solutions
Many businesses can be relaxed with deadlines. If a parent knows this they can wait some time after the deadline before making a payment. And will often take advantage of this and do so. One of the first things you can do with each new client is give them clear information. Such as how much the payments are and the dates that they are expected, as well as any penalties and late fees for late payments. Getting them to sign a contract that they understand the rules and serves to reinforce the deadlines in their mind.
Use automated messaging to send text, phone or email messages with upcoming payment reminders. Late payment notices serves to reinforce a professional business image and reminds customers of the importance of paying on time.
Don’t hesitate in chasing up late payments on a consistent schedule. You can use small business payment solutions tools to send invoices, late payment notices and daily reminders. These can carry instructions on how customers can rectify the issue and make their payment.
Allow Direct Debit Payments
In addition to accepting credit cards, you can also set up automated payments with customers to ensure that payments are always made on time. Additionally you can still allow direct debit payments so that customers can quickly pay when the bill is due or if they are late.
You can also put a clause in the contract that if a customer is late too often, then automated payments must be set up or there will be additional late fee penalties.
For more information on how to acquire professional debtor management tools and initiate automated payments, contact us at IntegraPay.