There are many contingencies that you cannot avoid when you own a wedding venue. However, payment schedules should not be one of them. Institute the following best practices to ensure that you receive your money on time, thereby protecting your business and instilling confidence in your customers.

Initial deposit

The most important of the payments you will receive, this retainer secures the wedding date and is usually non-refundable. Due when the contract is signed, this payment is generally 25-50% of the total cost. Use these funds to cover your administrative costs as well as the loss of any other customer who may have wanted to use your space on that date. Since this is non-refundable, be sure to state that fact in your agreement.

Multi-payment installment plan

It can be difficult for most couples to transfer a single lump sum to you that covers the entire cost of the event. Instead, consider breaking the payments into three or four parts. The first payment is the initial retainer for 25-50%. The second is another installment of 25-30% due several months before the wedding. If applicable, the third payment would be enough to bring the total to around 80% of the complete cost and would be due two to three months ahead. The remaining balance, including any security deposits or adjustments, would be due in advance of the final wedding day.

Security deposit

It is always a good idea to collect a refundable security deposit. This helps to protect against damages, rule violations, or excessive cleaning costs. Generally, what the couple pays for this would depend on the total cost of the event. Often collected with the final payment, this fee can be refunded after the event is over as long as the conditions that have been agreed upon are satisfied.

Clear contracts

The contract that lays out the conditions of your payment schedule is an essential document. If it is clear and thorough, your payments are likely to proceed smoothly as planned.

The document should contain an itemized breakdown of all costs. This should consist of venue fee, included services, and any additional costs. Additionally, clearly detail what your late fees are and how they work. Understanding this all-important stipulation motivates couples to pay on time.

Furthermore, specify the forms and methods of payment that you are willing to accept. You can schedule recurring payments or take checks, bank transfers, or credit cards. Indicate whether any processing fees will be added.

Finally, tie a clear cancellation and refund policy to your payment schedule. To protect your business, consider instituting a non-refundable retainer and a tiered refund policy for subsequent payments. Implementing these measures provides a layer of protection in the event of a last-minute cancellation. As you construct your venue’s payment schedule policies and procedures, remember the important role that your merchant provider plays. Contact them if you have any questions about how to accept popular forms of payment or if you require assistance in configuring your system to take recurring payments. Being intentional about building this strong foundation will help to ensure that your business is shielded from the unexpected while instilling confidence in the couples you are there to serve.