What late fee means
A late fee is a charge added to an invoice paid after its due date, set out in the payment terms.
Also called finance charge, interest on overdue invoices.
Where it shows up in your business
Late fees only hold up if they were in the agreement before the work, and some states cap them. Many contractors use them more as a nudge than a profit line.
Work it out
- Free template: Terms and conditions template
- Money guide: Payment terms and net 30
- Money: Money guides for contractors