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Rant: My lawyer said to always put late fees in the contract
I hired a lawyer to write my service agreement last year and she insisted on a 5% monthly late fee clause. I thought it was too harsh and almost took it out. Just had a client from Tampa who was 60 days late on a $2,500 invoice. The late fee got their attention and they paid the full amount within 24 hours of my final notice. Has anyone else had a late fee actually work like that?
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shane_carter15h ago
From my view, it sets the right tone from day one. A clear late fee in the contract isn't about being harsh, it's about being clear. It turns a personal conflict into a simple business rule. Good clients who plan to pay on time won't even notice it's there. It only becomes a problem for the ones who were going to be a problem anyway.
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ryan_hart3820h ago
I mean it also filters out clients who don't respect your time from the start.
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