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Late fee wording

Discussion in 'Business Operations' started by Uranus, Feb 8, 2007.

  1. Uranus

    Uranus LawnSite Bronze Member
    from Mass
    Messages: 1,621

    Hey guys. I'm redoing my estimates. I decided this year that I have to add a $10 late fee. I'm looking to get some ideas to the wording I should use. I bill once a month, usually on the 1st and give customers at least 15 days to pay. Now if someone doesn't pay by the 1st of the following month I want to add in the late fee of $10. Should I tell them if payment isn't received by due date they get the $10 late fee or should there be a little grace period. I'm looking for some ideas on wording that I can put at the bottom of my estimates.
  2. jpmako

    jpmako LawnSite Senior Member
    Messages: 593

    I send my invoices out on the 10th of each month and are due in full on the 5th of the following month. Here is my late fee wording directly from my contract.

    B.) Invoices will be rendered by Cutting Edge Landscaping, Inc. to the Client by or around the 10th day of each month, and are due in full by the 5th day of the following month. Any invoice or scheduled payment over 10 days past due will be subject to a late fee of $20.00 and/or interest on a daily basis at a rate of 2.0% a month. Cutting Edge Landscaping, Inc. reserves the right to suspend service when payments become more than 10 days past due. This agreement price has been negotiated and agreed upon based on the Clients grounds, as they exist on the agreement date. In the event the Client adds additional turf area, trees, plantings, walks, driveways, or paths that are suitable for edging or other maintenance, Cutting Edge Landscaping, Inc. shall not be responsible for the care or maintenance of such additional improvements without a written change order.

    Hope this helps,


    CLARK LAWN LawnSite Silver Member
    Messages: 2,525

    check your state laws here you can only charge 18% APR or 1.5% a month and that must be printed on the invoice. mine simpy says "invoices over 30 days are subject to an 18% finance (1.5% monthly) charge"

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