Loading…
21
I was dead set against charging late fees until a $2,400 invoice sat unpaid for 94 days
For years I told myself late fees would scare off clients, so I just sent polite reminders and ate the wait. Then a contractor in Fresno sat on a $2,400 invoice for 94 days, and I spent way more hours chasing it than the fee would have taken to explain. What finally changed my mind was a one line note on my invoice: 1.5% per month after day 30. Nobody argued, and the two slowest payers suddenly paid in 12 days. Now I'm wondering if I left the percentage too low, what number do you all use?
1 comments
Log in to join the discussion
Log In1 Comment
sanchez.julia23h ago
This is the same thing that happens with EVERY rule nobody wants to enforce. Think about how parents say "clean your room or no screen time" and suddenly the room is clean by dinner. Or a gym that starts charging for missed classes and the no-show rate drops overnight. The rule itself barely matters, it's the fact that there's a cost at all. People test limits until a limit actually bites them. Your 1.5% is probably fine, but honestly even 1% would have done the same thing.
5