Late Fee Management
A late fee is a charge for paying after the due date. Check your state's rules and ask a lawyer before you charge one. In Billed, you set due dates, schedule payment reminders, and can add late fees as an amount or a percentage.
Key Takeaways
- Before you charge a late fee, check your state's rules and ask a lawyer.
- Set a due date on every invoice: Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay."
- Remind clients before a late fee comes into it: Billed's help article on payment reminders says: "You can set a schedule of payment reminders before and after the invoice's due date." It also says: "You can send up to three reminders."
- Billed's help article on creating an invoice says: "Charge Late Fees: Add an amount or percentage in the late fees section to automatically charge a fine against late payments."
What a late fee is, and when you can charge one
A late fee is a charge a client pays for settling an invoice after its due date, as set out in the terms you and the client have in place. Check your state's rules and ask a lawyer before you add late fees to your terms.
A late fee doesn't replace following up. A clear due date and reminders before and after it give the client a chance to pay before any late fee applies.
Due dates, reminders and reports
Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay." Billed's help article on payment reminders says: "You can set a schedule of payment reminders before and after the invoice's due date." It also says: "You can send up to three reminders."
Billed's help article on email templates describes a "Late Payment Reminder" template: "This template is used when you have to remind the clients about the past due invoice." Billed's invoice software page says: "Invoice reports show which invoices are paid, partially paid or past due, and you can see who owes you money and send them a payment reminder."
Late fees in Billed
Billed's help article on creating an invoice says: "Charge Late Fees: Add an amount or percentage in the late fees section to automatically charge a fine against late payments."
Billed's help article on recurring invoices says: "You can also charge late fees for recurring invoices. Turn on the “Charge Late Fees” option and choose a percentage or flat rate."
Letting a client pay in parts
If a client can't pay the whole amount at once, you can let them pay in parts. Billed's help article on partial payments says: "You can let your clients pay the partial amount through this option." Billed's help article on payment schedules says: "A payment schedule lets you add a payment plan to the invoices." It also says: "You can either enable partial payments or scheduled payments."
Worked example: a late fee under sample terms
These are sample figures, not a suggested rate. A $2,400.00 invoice is due on the 15th, and the client's contract sets a one-time late fee of 1.5% of the unpaid balance once the due date has passed.
The client pays nothing by the due date. 1.5% of $2,400.00 is $36.00, so under these terms the client owes $2,400.00 + $36.00 = $2,436.00. Check your state's rules and ask a lawyer before you set a rate.
Getting paid
Billed's mobile app page says: "Invoices carry a pay button when Stripe or PayPal is connected, so clients can pay by card the minute they receive it." Billed's invoice software page adds: "When a client pays by check or cash, record it as an offline payment so all your income is in one place."
Late Fee & Penalty Management in Billed
Due dates on every invoice
Billed's invoice software page says: "Set a due date on each invoice so your client knows when to pay."
Related Features
Explore the Billed features that power late fee & penalty management.
Frequently Asked Questions
Start Invoicing With Billed
Set up your account and send your first invoice with Billed.
At a glance
| You need | In Billed |
|---|---|
| A clear due date | Due date on each invoice |
| Follow-up before and after it | Scheduled payment reminders |
| A late fee your terms allow | The late fees option, as an amount or percentage |
| A client who needs time | Partial payments or a payment schedule |
Sources for this page. Billed capabilities come only from Billed's own pages: Invoicing (due dates, invoice reports, offline payments), Mobile app (pay button), and these help articles: creating an invoice (the late fees option), recurring invoices (late fees on recurring invoices), payment reminders, email templates, partial payments and payment schedules. Checked October 30, 2026. This page doesn't state late fee rules; check your state's rules and ask a lawyer.
When this isn't for you
This page covers due dates, reminders and late fees on your own invoices. If the way you follow up on unpaid invoices today already works for you, there's no need to switch.