Fee collection FAQ
Very simply, fee collection is a direct debit service which collects payments from parents’ accounts at the same time every month. The money is then transferred safely to your setting’s bank account.
Yes – our fee collection service links to our Abacus nursery management software. This will save you time as Abacus creates the collection file through invoicing and automatic payment reconciliation is available.
After you’ve filled in the initial application form, we’ll send you direct debit mandates to be completed by your parents/carers along with your welcome pack. These mandates should be returned to Parenta’s offices by the first working day of the month for collection from the following month. These can be sent over all in one go or in a several different instances. We’d recommend you allow 2 calendar months to set up this service.
When taking money on a credit card from parents, you will likely incur charges on your business account of around 2%, and you may need to keep reminding parents every month that they need to pay. Using our fee collection service, the direct debit is taken out of their account at the same time each month, with no hassle and no chasing needed.
There is no risk to you at all, as the service is provided by and managed through Parenta. What’s more, all payments made by parents will be covered by the Direct Debit Guarantee.
Parents will be notified around 3 days beforehand by email as to how much will be taken from their account.
Automated fee collection will completely change the way your setting works. For a start, you’ll never need to worry about whether you’ll be paid on time and there’ll be no need for you to chase parents for payment. This means you can keep childcare completely separate from collecting money, enabling you to focus on building a great partnership with parents.
If the money is not in a parent’s bank account when we attempt to collect it, we’ll write to them explaining it could affect their credit rating and charge them a £20 fee. We’ll give them the date of a second collection and ask for the funds to be available for collection. We find that once parents have received a letter and charge, they don’t miss further payments.
Although our fee collection service works great with Abacus and the collection file is automated, this can be operated on its own. We’ll contact the parents, collect their fees and pay them into your bank account, as well as emailing you a payment summary.
Nurseries who use our fee collection service have stated that the biggest burden they’ve faced prior to using this service was getting money from parents and paying staff their wages. Having fee collection in place has totally removed this burden. Our customers are then able to maintain a great relationship with their parents/carers whilst we do the chasing.