Late Payment Penalty Clause
When to Use This
Use this clause to discourage late payments and compensate yourself for chasing unpaid invoices.
Contract Wording
Payment is due within [7/14/30] days of invoice date. If payment is not received by the due date, a late fee of [1.5%] per month (or [RM50-100] flat fee) will be added to the outstanding balance. Continued late payment may result in work stoppage and/or termination of this agreement.
Why This Matters
Without a late payment penalty, clients have no incentive to pay on time. This clause puts a real cost on delays and gives you grounds to stop work if payment is consistently late.
