Brand Deals, Sponsorship & Business
Late fee
Also called: late payment fee, interest on late payment
Payment terms slip constantly, and a late fee is what gives words like net 30 any consequence. The clause names a rate, commonly a percentage of the outstanding amount per month, and the money collected is rarely the point of it. What it provides is a reason for somebody in accounts to move your invoice up the pile. In the UK, commercial invoices carry a statutory right to interest and a fixed sum in compensation even where the contract is silent, so the entitlement exists whether you negotiated for it or not. Enforcement is the awkward part, since chasing a fee from a brand you want to work with again is a judgement call every freelancer makes at some point.