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You can still try to charge late fees after the fact if a client doesn’t pay their invoice on time, but you won’t have much legal power to enforce it. You should also include this information in the “terms and conditions” section of every invoice you issue.Īnother important reason to communicate your late fee policy from the get-go is that late fees are only legal if outlined and agreed upon in your original client contract or payment terms.īut what if you forget to outline your late fees in a contract before delivering your services? Are you just out of luck if the client pays late? Including your late payment policy and fees in your initial contract with clients is the most effective way to ensure everyone is on the same page about them. Plus, making clients aware of late fees will discourage late payments in the first place. This can help you avoid some awkward conversations down the line. The best way to go about charging payment late fees on an invoice is the best way to go about most things-good communication.īy clearly communicating your late fee policy to clients from the start, you’ll be able to set expectations for payment right away. Let’s get started! How Do I Charge Late Payment Fees on an Invoice? We’ll also give you some examples to use when writing late fee emails and talking about overdue invoices with clients. This article will cover how to charge payment late fees on an invoice and invoice late fee wording. And it’ll put a little extra money in your pocket when invoices become overdue. Charging late fees on invoices will encourage clients to pay on time. It also goes without saying that late payments limit your incoming cash flow and can create more problems for your accounting over time.Įven though 54% of businesses expect to have to deal with late payments, that doesn’t have to be your reality. You could spend those days working on other projects (and getting paid for them), sealing other deals, or relaxing at home with your family. Not only is that an annoying statistic, but it’s also a costly one. How to Charge Late Fees on an Invoice (with Example)ĭid you know that on average, small businesses spend 15 days each year chasing down late invoice payments?
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