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Late Fee

A charge added to overdue invoices — must be stated in your terms beforehand to be enforceable.

A late fee compensates for delayed payment and nudges clients to pay on time. To be enforceable it must appear in the agreed terms before the sale, and it must be reasonable rather than punitive.

Many businesses find the mere presence of a late-fee clause in their terms improves punctuality more than actually charging it.

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Payment Terms Overdue Invoice Early Payment Discount
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