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That 'net 90' clause in my contract just bit me hard in Austin
Signed a $12,500 renovation job last month thinking the client was solid, but their check finally landed 11 days past the due date and only after I called them 4 times. I've been doing this 6 years and never had a late payer this stubborn, but now I'm wondering if I should start charging a 1.5% monthly late fee on every invoice from here on out. Anyone else add a penalty clause after getting burned once, or do you just eat the delay to keep the relationship?
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corap612mo ago
Texas actually caps late fees at 6% a year unless you have a written agreement saying otherwise, so that 1.5% monthly might not even hold up in court. I looked into this after a similar headache a few years back and ended up putting a flat $50 late fee plus 1% monthly in my contract, which is way easier to enforce. You might wanna check your state rules first before you add anything, but yeah, getting burned once is plenty of reason to protect yourself.
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