Late Payment Penalty

What is Late Payment Penalty?

An extra charge you add if a customer doesn’t pay by the agreed date.

Think of it like this…

A gentle nudge that becomes more expensive the longer they wait.

Why does it matter?

• Encourages customers to pay on time
• Compensates for the cost of chasing payments
• Improves cash flow

Best practice

Include penalty terms in contracts and invoices before starting work.