Invoicing glossary
Late fee
A late fee is an extra charge added to an invoice when it isn't paid by the due date.
Late fee: a clear definition
Late fees encourage on-time payment and compensate you for the delay. They're often a percentage of the overdue amount or a flat charge per period. To enforce one, state the late-fee policy on the invoice and in your terms before the work begins.
How Invco helps
Invco is an AI invoicing assistant that handles late fee and the rest of your billing for you. Design a custom invoice template, then let Claude create and send invoices on it in plain English — with subtotals, tax, and totals calculated automatically and every invoice tracked from sent to paid. Start free with one company.
- Related terms: Overdue invoice, Payment terms
Frequently asked questions
What is late fee?
A late fee is an extra charge added to an invoice when it isn't paid by the due date.
What is overdue invoice?
An overdue invoice is one that hasn't been paid by its due date.
Invoice the easy way with Invco
Let an AI assistant create and send your invoices on a template that looks like your brand. Start free with one company — no credit card required.
Get started — it's free