Letters of demands may decrease school fee arrears
“Letters of demand, if sent at the right time, may improve collections by up to 82%.”
Waldo Marcus, head of marketing at TPN Credit Bureau, urges schools to collect outstanding school fees before the start of the new school year to prevent the knock-on effects of arrears.
Independent and fee-paying public schools are heavily reliant on parents to pay school fees. The reality, however, is that less than 60% of parents pay school fees on time.
This has a significant knock-on effect on a school’s finances, severely impacting its ability to meet its operational costs.
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Marcus said four of Johannesburg’s most prominent public schools have more than R20m in outstanding fees, with the highest standing close to R30m.
“Many schools were struggling with bad debt even before the pandemic,” he said.
“Post-pandemic, schools continue to report a significant struggle with the pandemic having worsened the level of outstanding school fees due.”
Data indicates November and December as the most critical months for schools to collect outstanding fees, before the payment cycle for the new school year kicks in.
TPN offers a wide range of solutions specifically designed to help schools collect outstanding fees.
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“Each month parents receive an SMS from the credit bureau to thank them for paying their children’s school fees and to notify them on how their most recent payment has impacted their credit profile,” explained Marcus.
“This acts as a powerful motivator to encourage better payment behaviour for such a critical service.”
Additional services include sending a letter of demand, and being compliant with all legislation via registered post which has proven to facilitate prompt payment.
“Schools can list non-paying parents on the credit bureau for free with adverse listings remaining on the credit bureau for 12 months,” he said.
Among the many benefits of making use of TPN’s services is that schools have a full record of legal communication as well as access to free legal advice, support and training.
