News

Nurseries struggle to recover late payments

Business Management
More than half of nurseries have had to write off debts from unpaid fees in the past year, a survey suggests.

Training and management software company Parenta’s childcare survey reveals that 54 per cent of respondents have had to write off debts from parents in the past 12 months.

The lowest amount of debt written off by providers was £150 and the highest amount given was £12,000.

Although the majority of providers (93 per cent) had a system in place to chase those that owed them money, most had a lenient approach to late fees.

One nursery owner was chasing £6,000 owed to them through a small claims court, with costs continuing to rise.

However, another provider’s zero tolerance approach to fees meant they had no parental debts because of a ‘no pay, no play’ approach to late fees.

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