I think it has to be made very clear from the start that late payment of fees will seriously affect your business and you will endeavour to work with parents who have difficulties but you will also deal with consistent offenders very harshly.
As someone has already pointed out putting a penalty on top of the fees doesn't have the desired effect as parents will just refuse to pay it. I think a much more effective way is to give parents who are struggling every opportunity to pay in instalments to clear the debt and work with them to come to a satisfactory conclusion. However, if they refuse to co-operate give them a firm warning informing them that if they do not make some attempt to communicate their intentions you will suspend their child until the debt has been recovered.
Point out that if their child's place is suspended they run the risk of that place being taken by another child and they may not be able to return.
I am afraid there are some cases where by you have to be brutal and although this would always be a last resort for me, I wouldn't be afraid to take it. Once you let one parent off, believe me word gets round and before you know it others are following suit.
For those of you who feel sorry for the excluded child, think on. I am a Development officer for a local authority and I have seen 4 pre schools fold completely due to late payment of fees, so it wasn't just one child that lost its place as a consequence it was many.
Take care
Bev
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