Charging interest on past due accounts.

[ChefV]

What is the name of your state (only U.S. law)? PA

I have an interior designer that hired me to do work for him as a subcontractor and he is taking he sweet old time paying me for the work that has been completed. I sent him an invoice for the balance due and will be sending him a statement in a few days annotating that the amount due is outstanding over 30 days. I would like to include a line that says interest will be charge after a certain point, but I'm not sure how much I can charge or how exactly I need to go about it. Any advice you could offer would be greatly appreciated!What is the name of your state (only U.S. law)?What is the name of your state (only U.S. law)?

 

[CraigFL]

Here's the reality... If it didn't get agreed to in your contract signed by him, you probably won't get it. If it's not in there, you need him to agree to an ammendment -- which he probably won't. In any case, you won't be able to charge him enough to make it worthwhile for him to pay on time because the usury laws will limit. And even if he does pay late but shorts you the interest, you probably will accept it.

 

[ChefV]

That's what I was thinking too... Thanks for the advice.