Getting-paid guide
How to Charge Late Fees on Invoices (Without Losing the Client)
A late fee turns a client's "I'll pay eventually" into "I should pay now." But it only works if you set it up in advance and apply it professionally. Here's how to do both.
Can you actually charge a late fee?
Generally yes — if your contract or invoice terms say so before the work starts. A late fee that appears for the first time on an overdue invoice is much harder to enforce (and more likely to annoy the client). Put it in writing up front.
How much is reasonable?
A common approach is 1.5% per month (about 18% annualized) on the outstanding balance, or a flat fee (e.g. $25-$50) after a grace period. Keep it proportional; very high rates can be unenforceable in some places.
How to word the clause
For example: invoices unpaid 15 days after the due date accrue a late fee of 1.5% of the outstanding balance per month. Include the grace period, the rate, and how it compounds. Clear terms are easier to enforce.
How to apply it professionally
Give a heads-up before it kicks in, then apply it on the reminder as a line item, calmly and factually. You are following your own stated policy, not improvising a penalty.
Stop sending these by hand
DunningDesk tracks your outstanding invoices and emails a polite, escalating reminder sequence automatically — so you recover revenue without the awkward chasing.
Start recovering payments →Frequently asked
Can freelancers legally charge late fees?
In most places, yes — as long as the fee was agreed in advance (in your contract or invoice terms) and is reasonable. Rules on maximum rates vary, so keep it proportional.
What is a reasonable late fee for an invoice?
1.5% per month of the outstanding balance, or a modest flat fee after a grace period, is common and defensible. The point is to motivate payment, not to punish.
How do I apply a late fee without upsetting the client?
Set it in your terms up front, remind the client before it applies, and add it as a clear line item. DunningDesk can send the escalating reminders that reference it automatically: dunningdesk.dietsoda.dev
Templates are examples — adapt the tone and timing to your own client relationships and contract terms.