Payments

    Late fee

    A penalty added to past-due invoices to encourage on-time payment.

    Definition

    Most US trades charge 1.5% per month (18% APR) on balances past due. Legal in every state if disclosed on the invoice or contract before the work. Glo Invoice can apply late fees automatically after a grace period.

    Related terms

    Past due

    An invoice still unpaid after its due date.

    Net 30

    Payment terms requiring full payment within 30 days of the invoice date.