How to Avoid Non-Payment for Home Daycare Services

If you have been providing home daycare services for any length of time, then you have probably had a parent pay you late or not pay you at all. This is one of the more frustrating aspects of running a home business. However, there are some things that you can do to ensure that this won't happen to you.

1. Collect payment on the first day of the week.

Collect payment for your services before or when the parent drops the child off on the first day of the week the child is in your care. You may feel awkward about doing this, but it is the number one way to prevent a parent from stiffing you for a payment. If the parent is not bring the payment with a child on the first day of the week then charge them a late fee for each day that it's late up to two or three days.

Another option is to simply tell the parent that they cannot chop off the child depending on also have the payment. This is a more harsh policy, but if you're dealing with a parent that you have reason to believe may not pay you owner has failed to pay them in the past and this is the best way to prevent being burned.

2. Draft a payment policy.

If you do not already have a child care policy that parents have to sign and agree to then draft one. Being clear about what your payment policies are is one of the best things you can do to prevent a parent from failing to pay you. Remember to put it in writing and have the parent sign the document and date it.

3. Collect the deposit before the child is in your care.

Require that parents provide you with a deposit equal to the cost of one week of care. This way, if they ever fail to pay you, they would have to forfeit the deposit. Again, be sure to write all of this into your child care and payment policies.

4. Offer attractive incentives.

If you are particularly tired of having to act more like a debt collector than a child care provider, consider offering parents the option to pay you for the entire month up front. Offer them some sort of incentive such as a small discount. Yes, they may end up paying slightly less but it may be well worth saving yourself the headache.

5. Screen parents before you accept their kids into your care.

During a parent interview before the children are ever in your care, ask the parent to provide the names and contact information for the last two providers. Contact the providers and ask them about the payment history of the parent. If the parent does not want to provide you with information or the previous provider gives you an indication that they are not financially responsible, do not accept their child into your care.