LATE PAYMENT CLAUSE — COPY-PASTE LANGUAGE FOR FREELANCE CONTRACTS ================================================================== Prepared by SoloStack | solostack.madethis.app Free to use and adapt for your freelance business. Choose the version that fits your contract style. All clauses are written in plain language and designed to be enforceable without a lawyer. Edit the bracketed fields to match your rates and timelines. NOTE: This is template language, not legal advice. For significant contracts, consult a lawyer in your jurisdiction. ================================================================== VERSION 1 — STANDARD LATE PAYMENT CLAUSE (RECOMMENDED) ================================================================== "Payment Terms and Late Payment Penalties Invoices are due within [7 / 14 / 30] days of the invoice date ('Payment Due Date'). If an invoice is not paid in full by the Payment Due Date: (a) Interest: A late payment fee of [1.5%] per month ([18%] per year) will be added to the outstanding balance on the first day following the Payment Due Date, and on the first day of each subsequent month until the invoice is paid in full. (b) Work suspension: Freelancer reserves the right to pause all work on the project until all outstanding invoices are settled in full. Project timelines will be extended accordingly at no penalty to Freelancer. (c) Collection costs: If Freelancer must take legal action or engage a collection agency to recover unpaid amounts, Client agrees to reimburse Freelancer for all reasonable collection costs, including attorney's fees and filing fees. Client is responsible for ensuring payment is sent by the due date. 'I didn't receive the invoice' is not a valid reason to waive late fees unless Freelancer failed to send the invoice to the address specified in this agreement." ================================================================== VERSION 2 — FLAT LATE FEE (SIMPLER) ================================================================== "Late Payment Fee All invoices are due within [14] days of the invoice date. Invoices not paid within [14] days will incur a flat late fee of $[50 / 75 / 100] per calendar week (or part thereof) until the invoice is paid in full. Freelancer reserves the right to suspend all project work during any period in which an invoice is overdue. Timeline delays resulting from work suspension are the Client's responsibility." ================================================================== VERSION 3 — DETAILED CLAUSE WITH ESCALATION SCHEDULE ================================================================== "Payment and Late Payment Policy 3.1 Payment schedule [List your payment milestones here — e.g., 50% deposit due before work begins; 50% due on delivery of final files.] 3.2 Invoice terms All invoices are due within [14] calendar days of the invoice date. 3.3 Late payment interest Invoices not paid by the due date will accrue interest at a rate of [1.5%] per month ([18%] per annum), calculated on the outstanding balance from the due date until the date of full payment. 3.4 Work suspension If any invoice remains unpaid for more than [7] calendar days beyond the due date, Freelancer may immediately suspend all work on the project without liability. Work will resume only after all outstanding invoices and accrued interest are paid in full. 3.5 Project completion and delivery Freelancer is not required to deliver final files or transfer intellectual property rights until all invoices have been paid in full. 3.6 Collection If Freelancer engages legal counsel or a collection agency to recover overdue amounts, Client shall be responsible for all associated costs, including attorney's fees, court costs, and collection agency fees. 3.7 Currency All amounts are in [USD / GBP / EUR / specify currency]. Client is responsible for any bank transfer fees or currency conversion costs." ================================================================== HOW TO CHOOSE YOUR PAYMENT TERMS ================================================================== Net-7 → 7 days to pay. Aggressive but common for small projects. Best for: new clients, small projects, clients with payment history. Net-14 → 14 days to pay. Good balance of promptness and flexibility. Best for: most freelance contracts. Net-30 → 30 days to pay. Common for larger corporate clients. Warning: this means you wait a month after delivery to get paid. If you choose net-30, your deposit clause becomes critical. Late interest rate: 1.5% per month = 18% per year — this is the most common freelance rate. Some freelancers use 2% per month (24%/yr) for repeat late payers. ================================================================== WHAT TO DO WHEN A CLIENT PAYS LATE ================================================================== Day 1 (invoice due — no payment received): Send a polite reminder email. Keep it friendly. Most late payments at this stage are genuine oversights. Subject: "Invoice #[X] — friendly payment reminder" Body: "Hi [Name], just a quick note that invoice #[X] for $[amount] was due [date]. Please let me know if you have any questions or need me to resend it. Happy to help get this sorted." Day 7 (7 days overdue): Follow up again. Reference your contract's late fee clause. Subject: "Invoice #[X] — now 7 days overdue" Body: "Hi [Name], invoice #[X] is now 7 days past due. Per our contract, a late fee of [1.5%/flat fee] has been applied to the outstanding balance. The current amount owed is $[updated total]. I'm pausing work on [project] until this is resolved." Day 14 (14 days overdue): Send a formal demand. CC their accounting department if possible. State clearly that you will pursue collection if not resolved by a specific date. Day 21+ (21+ days overdue): Options: small claims court (usually up to $5,000–$10,000 depending on your state), a collections agency (they take 25–50% of recovered amount), or a demand letter from an attorney. Document everything. ================================================================== WANT THE FULL CONTRACT TEMPLATE? ================================================================== This clause is one piece of a complete freelance contract. SoloStack's template library includes a full contract pack with all the clauses you need — plus invoice templates, SOWs, and onboarding docs. Get the full library: https://solostack.madethis.app/products © SoloStack. Free to use and adapt for your freelance business.