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Calculates acceptable late payment interest to incentivize timely payment without violating usury laws. Compensates for payment delays.

Trin-for-trin guide

  1. 1Determine invoice amount and due date
  2. 2Set late fee % or fixed amount
  3. 3Calculate: invoice × (1 + late fee %)
  4. 4Define days before fee applies (typically 15-30)
  5. 5Document in payment terms

Løste eksempler

Input
$1000, 2%
Resultat
$20 fee

Almindelige fejl at undgå

  • Exceeding state usury limits (unenforceable and damages relationships)
  • Not including late fee in invoice clearly

Ofte stillede spørgsmål

What late fee percentage is standard?

Typically 1-1.5% monthly (12-18% annually); must not exceed state usury limits (often 10-15% annual).

Does a late fee actually improve collections?

Yes; 15-20% improvement in on-time payment; also compensates for financing delay.

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