Charging Late Fees On Invoices
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FAQ
Late payments: 5 tips to get your customers to pay on time Set your terms and expectations at the start. Send out invoices promptly. Make it as easy as possible to pay you. Talk to your customer about why they're not paying on time. Give your customers regular reminders.
You can include the same basic text on every invoice, such as a variation of this invoice late fee wording: ?Invoice payment is due within 30 days of receipt. A monthly late fee of 1.5% of the total invoice amount will be charged on all overdue payments.?
Notify Clients Ahead of Time You can do this by email, phone, or in person, but it's essential that you have a discussion with each client and allow them to ask questions so they aren't caught off guard the next time they receive an invoice.
Send a late payment letter notifying the customer that their payment is overdue. In your late payment letter, explain when the due date was. List the overdue invoice charges and their new liability. Explain whether their late payment fee will increase if they do not pay within a certain number of days.
Examples of Late Payment Fee in a sentence If your account is subject to a Late Payment Fee, the fee will be charged to your account when you do not make the required minimum payment by or within the number of days of the statement Payment Due Date set forth on the Disclosure accompanying this Agreement.
