For small businesses, a standard late fee for an overdue invoice is typically 1-1.5% monthly. Experts also recommend 10% annual interest as a good benchmark since you likely won’t be over the cap in most states.
Ultimately, however, the right late fee for you will depend on your business. Here are a few things to consider when deciding when to apply a late fee and how much to charge:
Whether you want to keep the client’s business
Your brand style and personality
Your relationship with the individual client
The client’s payment history