Businesses, suppliers and contractors can charge interest on overdue invoices if it is specifically stated in their agreements with clients that they have the ability to do so, according to NOLO. The client must know ahead of time that the business or individual reserves the right to charge interest for late payments.Continue Reading
The conditions concerning late payments should be specifically stated in the business agreement and on monthly invoices. Any interest or late fees must adhere to state regulations.
If interest has not been charged in the past on overdue payments, it is possible to modify the business agreement so that the business or individual can require it in the future.Learn more about Accounting