A late fee is not a punishment. It is a reason for the customer to pay you before they pay someone else. But it only works if it was agreed to up front. Springing a fee on someone after the job feels like a trick, and it usually starts an argument instead of a payment.
Put it in writing before the work starts
Your estimate or agreement should say when payment is due and what happens if it is late. Then the same line goes on the invoice. If the customer signed off on the estimate, the fee is not a surprise.
Simple wording that works
How much is reasonable
Many businesses use a monthly percentage or a small flat fee. The limits on what you can charge are set by state law and vary from place to place, so check your state's rules before you pick a number. When in doubt, keep it modest. The goal is to get paid, not to collect fees.
When to waive it
- Good repeat customers. One late payment from someone who always pays is worth a phone call, not a fee.
- Your mistake. If the invoice went to the wrong email or had an error, the clock starts when they get a correct one.
- They called first. A customer who tells you they will be a few days late is a customer who plans to pay.
Better than a fee: make paying easy
Most late payments are not refusals. The bill got buried. Sending it the day you finish, by text, with a pay link, and following up on the due date does more than any fee. In EZ Invoices you can put your late-payment terms in the invoice notes, and every invoice can carry a card payment link.
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