How do I add a late payment fee to a freelance contract?

Add a late fee to your freelance contract: monthly percentage, start date and the right to pause work. Clear wording plus a polite email.

The risky clause

No late fee or interest shall apply to delayed payments.

Why it is dangerous

Without a late fee, delay costs the client nothing. A modest monthly fee and a right to pause work encourage on-time payment. Check any legal cap on interest in your jurisdiction. This is general information, not legal advice.

Safer clause to propose

Invoices unpaid after the due date accrue a late fee of 1.5% per month, or the maximum permitted by law if lower. The Contractor may pause work while any invoice is overdue.

Message to send

Hi [Client],

Could we add a late fee of 1.5% per month on overdue invoices and the right to pause work while one is overdue? It is a standard term. Thanks, [Your Name]

Frequently asked questions

Is a late fee legal?

Usually yes if agreed in the contract, but check local limits on interest.

When does the late fee start?

On the day after the due date stated in the invoice or contract.

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