School Plan is Fee Plan’s school fees invoice discounting service aimed at facilitating schools enhance their cash flows. A school may opt to have its parents apply directly to Fee Plan for a fees facility. However, as the decision remains with the parents the school may not benefit if parents do not apply.
With School Plan a school can apply directly to Fee Plan for the value of the pending school fees invoices and repays Fee Plan as it collects the school fees from its parents during the term. Once created a School Plan facility is accessible to the school every term subject to consistency in repayment.
Why School Plan?
Learning institutions rely on the early settlement of school fees to be able to provide a quality education service and giving the best possible infrastructure for the students. However, the continuing risk of late payments of school fees makes realizing this objective difficult especially where parents consistently pay their obligations late every term. Being able to use the outstanding invoices to access funds immediately ensures that the school’s programs are not impacted on due to poor cashflow. This solution is designed to facilitate a school in managing its cashflow as it makes allowance for slow payment of school fees.
How does it Work?
For instance, if the school has 50 parents with outstanding fees as at a given point in the term of say a total of Kshs. 1,500,000/= and the school, from previous history with such parents, is confident of being able to collect the fees in the course of the remaining months of the term the school can approach Fee Plan for funding for the entire amount and repays the amounts as it collects the fees from the underlying parents.Currently this solution is structured as follows:
Administration fee of 1.5% of the principal amount or Kshs. 4,500 whichever is higher
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