Charging Clients A Fee For Late Payments

Q:

What is your take on charging clients a fee for late payments on my invoices?

A:

I hate to say it, but clients are often late with payments. We can add a late fee to our invoice, but what we have the most control over is getting a 50% or 75% advance before the job begins.

Here are the estimate/invoice terms I use:

• TERMS: Due Upon Receipt
• USAGE (granted upon full payment)
• Balance payment due before image rights are transferred to the client
• Project closing invoices paid more than 30 days from the submission date are subject to a 2% late payment charge per month starting from the original invoice date.