Can I charge a business late fees after 30 days of non-payment for freelance services?

Hi all,

I am a freelance doing Web and Print design, and a client is over 40 days late
since he’s viewed the last invoice. Can I charge a late fee after 30 or so many
days? If so, what’s the legal limit for that ?

Thank you.

Asked on March 23, 2016 under Business Law, Indiana

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

You may charge late fees IF--and only if--that was part of the agreement ahead of time: that is, the customer must have agreed to pay late fees before you did the work. You cannot impose late fees after the fact. The easiest and best way to do this is to include late fees in the your service agreement. 
A common and enforceable late fee is 1.5% of the outstanding per month late (pro rate for partial months).


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