Do you charge interest on late payment?

[Scottish Business Owner]

Just wondering if most businesses on here charge interest on late payments. Is it a case that you dont need to because veryone pays on time or do you think that levying such a charge will lead to you losing customers?

Maybe you're not fully aware of the rules as to what you can and cant charge.

Your comments?

 

[Brian McIntosh]

I always get payment up front. Whether it be a deposit then full payment before delivery or just the full payment up front. I don't really get any hassle about late payers but I'm looking to get more into the commercial photography side of things and that could open up a whole new can of worms.

 

[lofty]

was going to consider it in the past but most bills are paid up front these days.

 

[Former Member 1]

I always get payment up front. Whether it be a deposit then full payment before delivery or just the full payment up front. I don't really get any hassle about late payers but I'm looking to get more into the commercial photography side of things and that could open up a whole new can of worms.

There are 'ways of working' on the commercial side which give you some protection. Basically you DON'T release the IP 'till paid; even then it's a licence rather than buy-out. I set my buy-outs at

 

[stressmom]

I am curious to know what rates one would charge for late fees. Personally I think this is just a good way to lose business rather than recoup any money that you may be losing.

 

[MarkB]

There are two sides to this subject:

• Introducing interest on late payments can often make a difficult situation worse
• Interest on late payments can prompt many people to pay on time

It all depends how far you are willing to go to assist a customer who may be having short term cash flow issues. Maybe consider a 3 strikes and you are out system whereby 3 late payments means you can no longer do business with that customer?