Why we invoice in arrears
A large number of childcare providers nationally and a number of providers locally charge one month in advance. I understand the cost implications of childcare as I have myself paid it in the past so wish to offer, where workable, payments for childcare in arrears. That is, payment for the childcare that has been provided for the month, payable at the end of that month. To achieve this method of payment I ask that all invoices are settled on or before the last day of the month. If payments are received late on more than three occasions, then we reserve the right to change payment methods to payments in advance.
Why we invoice before the end of the month
A number of parents like to take advantage, if their employers offer it, of the Childcare Voucher Scheme. The amount of money that you request from your salary, to cover childcare costs, is your decision up to the maximum, monthly permitted amount which is currently £243 per parent. Inform your employer the amount of your salary you would like to receive in childcare vouchers, up to the maximum. When this money is credited to the chosen child voucher scheme then these funds can pay or go towards your childcare cost. As most of these schemes can take up to five days to process a payment, we invoice early to give time for any payments to be processed before the end of the month. A number of parents use this method of payment and as payments are actioned when invoices are received, then payments reach our account before the end of the month. Alternatively, payments can be made directly into our bank account. We do not accept payments by cheque.
Why we impose late payment charges
Our insurance provider will assist us in debt recovery, if required, but only if we make every effort to encourage that payments are made on time. We demonstrate this by imposing late payment charges in accordance with our pre-created PACEY contracts. These late payment charges are based on a per day rate and details of this amount can be found on your childcare contract. Late payment charges will run for up to five days. If payment is not settled within these five additional days then, by the guidance of our insurance company, we must suspend childcare until settled in full.
Repetitive late payments
It is not our wish to continually charge customers each month for late payments. If the particular method of payment that you have chosen is not working for you then we can change your payment terms to upfront payments. This way a payment will be due at the beginning of the month before any childcare is undertaken.
Working with parents
Please remember, it is your choice as to the payment method you use to settle your monthly account. If this method is not working for you, then you will need to make alternative arrangements to settle your account in accordance with the contract terms.
If you have any difficulty in settling your invoice due to unforeseen financial reasons then please speak to me so that we can work together to resolve any problems.