Why Late Fee Policies Work
A written late fee policy reduces ambiguity and gives your reminders legal and operational clarity.
What to Include in Your Payment Terms
Define due date, grace period, rate model, and escalation steps in contracts and invoice footers.
- Due date and accepted payment methods
- Grace period and late fee trigger point
- Interest rate or flat fee model
- Escalation process for unpaid balances
Keep Collections Professional
Use scheduled reminders and clear balance statements. Consistency is more effective than aggressive one-off messages.