Financial & invoicing terms explained

Late fee

A late fee is a charge or interest applied after the payment due date according to published terms.

Disclosure

State rates, start date, and compounding rules in contracts or master terms—not only on the invoice footer.

Calculation

Simple or compound interest should match what you communicate. Use calculators for clarity.

Customer relations

Waive thoughtfully and document—repeat offenders may need stricter terms.

Late fee — FAQ

Legal caps?
Many places cap late fees—disclose terms up front.
Simple vs compound?
Your policy and calculator should match what you quote.
Waive fees?
Document exceptions for finance consistency.
Back to glossary