Sharing Daily Discoveries About Personal Finance And Business Topics

Having Late Payment Clauses and Fine Penalties

Today I got notification that a large company that I did some work for over a month ago has finally paid their invoice. It was a little surprising too as you don’t usually expect large corporations to fall behind in paying their suppliers and contractors. But what this made me think is how many times as a consumer if you ever get anything with credit or obtaining services before paying the company often has fee if you don’t pay on time.

Come to think of it though, I have never had any such clause whenever I do contract work for others. It makes you think, should everyone have some kind of stipulation in an agreement where if the customer doesn’t pay within say 30 days then you will bill them say an extra 5% for each month it goes unpaid? I wouldn’t be too sure of the contract legalities but again I personally have never done this. Nor have I seen sole proprietors do it for the most part for general services.

Almost makes you wonder why from a business point of view huh? I would imagine for most they wouldn’t have the time and resources to fight it and so they would just leave it.

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