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Late Payement Charges On Invoices


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Could you advise me please on whether you charge parents a late payment charge- when they pay their bill late?

I have so many parents who pay late its costing me quite a bit in bank charges etc


I am still finding my feet in running the Nursery I invoice parents they pay either cash or chq but I understand from parents whose children have come from other nurseries that they paid direct into the Nurserys bank account- the same amount each month? I perume they are talking about a standing order/direct debit?

If you do it this way how do you work out what they should pay each month - my parents seem to be forever changing sessions! or do you still work out invoice and then tell them and they transfer the money?



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Most of our parents pay the same amount every month for standard sessions and then are invoiced seperatly for any extra sessions they may do and they pay these by cash or cheque. But there overall monthly amount is paid by direct debit.



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I'm the same as Dawn, Invoices are issued at the beginning of term, for a whole term, the total amount due is divided by 3, I complete a standing order for the parent, which they sign and take to their bank. The payments go out on the 1st of the month. ie September invoices will be paid on 1st Oct, 1st Nov and 1st Dec.

Any extra sessions are either paid on the day or invoiced 2 weeks before end of term. Any extra sessions attended last 2 weeks of term are added to the next terms invoice.


My invoices state that any reminder letters will incur a charge of 5% of total outstanding. I have only used this once for a persistently late payer.


I am now considering working out the invoices for the whole year instead of on a termly basis. not decided yet whether to do it this way though. It would reduce paperwork and enable parents to have a regular amount going out every month instead of it changing every term.



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