Nurseries, private schools, after school clubs, extra tuition. Whatever your educational establishment offers, Direct Debit can smooth out all the lumps and bumps of collecting individual fees from parents and puts the tuition fees into your account on time and in full.
If you operate an educational establishment you could well be collecting a considerable number of payments from parents, several times a year. The last thing you need is bad debts. Not only is it disruptive to your cash flow but it also impacts on your relationship with parents and ultimately can lead to the interruption of a child’s education.
By collecting fees by Direct Debit, much of this disruption can be avoided. Fees that would fall due each term can be spread over a whole year and collected monthly. This gives you regular cash flow and makes annual or termly fee collection much more manageable for parents.
If your business involves providing parents with subject specialist tutors then you will want to be certain that fees due to you and your tutors are paid regularly, without interruption.
This is where Direct Debit can really help. Offering the Direct Debit option to parents significantly reduces the risk of non-payment or parents habitually falling behind with fees. The advantage to parents is that once the Direct Debit is set up, they can be virtually forgotten about.
Wherever possible, fee collection should be automated, that way, once the Direct Debit has been set-up, you will have the comfort of knowing that at the beginning of each term, fees will be collected. Not only is your cash flowing as it should, but difficult conversations with parents can be avoided.