Charging Late Fees: Terms and Best Practices

1. Legally Declaring Late Fees

You cannot charge late fees unless they were agreed to in writing in your initial contract. Outline late fee percentages clearly.

2. Standard Late Fee Calculations

The standard late fee is 1.5% to 2% monthly interest, or a flat fee (e.g. $25 per week late).

3. Enforcing and Waiving Fees

Use late fees as leverage. You can offer to waive the late fee if they submit the base invoice balance immediately.