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A lawyer told me my client contracts were "too friendly" and it cost me $3,200 before I listened
Back in March I had a client in Portland stiff me on a $3,200 invoice because my contract never said when payment was actually due, just that it was "expected promptly." My brother in law is a paralegal and he read it and said, "this reads like a text to a buddy, not a contract." So I rewrote it with a real due date, a 1.5% late fee per month, and a line saying I own the work until it's paid in full. Two clients grumbled about the late fee clause, but nobody has dragged a payment past 30 days since. For those of you who do service work, what's your go to late fee percentage that clients don't fight you on?
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anthony4241mo ago
I read a thread on a freelancer forum where a guy said he tried 5% late fees and lost two clients over it, then dropped to 1% and nobody blinked. A bookkeeper I follow online said she uses 1.5% but only starts charging after day 45, and that grace period seems to be the trick. The psychology is that people hate the fee more than the number, so a small one with a clear start date works better than a big one with fuzzy terms. Your 30 day setup plus 1.5% sounds about right to me. Did you put the late fee in the original quote or spring it on them at signing?
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