is the late fee there to persuade them to pay on time? is it there to recover expenses incurred for reminder letters and phone calls? or is it there as a means of making more money from the client? right now, i have a couple of clients who pay a flat monthly rate. they are habitually late, which means thier grass goes uncut, they are charged a late fee, and no refunds are given for missed services. in a nutshell, thier habitual late payments have caused them to pay 3-4 times the regular rate for a grasscut. here is an example: the bill is a flat $130 per month for grasscutting. thier payment is not recieved on time. i don't cut the grass UNTIL the payment has been recieved, plus, a 3% late fee. if the check doesn't come until after the 3rd week in the month, i'll cut on the 4th week, but they have to pay the full months service, plus the late fee. so there are some months i get paid $135 for one grasscut, which was originally priced at $30 per mow. so then, what is the true purpose of the late fee?