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There's no federal late fee rule for B2B invoices in the US. What freelancers should check: contract terms, state usury limits, freelance protection laws and small claims limits.
In the US there is no single federal law setting late fees on business invoices. What matters is (1) what your contract says, (2) your state's usury and interest rules (many states cap interest; 1% to 1.5% per month is a common contractual rate but check yours), (3) any state or city freelance protection law (New York, California, Illinois, and cities such as Los Angeles, Seattle and Minneapolis have rules), and (4) your state's small claims limit, which ranges from roughly $2,500 to $25,000.
This is a general summary that may be out of date. Not legal advice. Verify current rules on official government or court websites.
Subject: Overdue invoice [INV-123]: [amount] due [due date] Dear [Name], Invoice [INV-123] for [amount] for [services] was due on [due date] and remains unpaid despite my reminders of [dates]. Please pay the outstanding balance [plus interest/compensation permitted by law or our agreement: state the basis] by [date]. If payment is not received by then, I intend to [next step for this jurisdiction] without further notice. If you dispute any part of the invoice, please tell me in writing by that date. Regards, [Your name]
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Generate my sequence freeCommon contract terms are 1% to 1.5% per month or a flat $25 to $50, subject to state limits.
Usually not. You can still ask for statutory or prejudgment interest where state law allows.
General information and draft wording only. Not legal advice. PaidNudge is not a law firm or a debt collector. Check your contract and local rules, or ask a qualified lawyer, before relying on any late fee, interest or court step.