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Interest on late payments??


Senior Member
Albany NY
I was wondering what kind of interest to charge for late payments and at what point to charge it. One of my commercial customers hasn't payed a bill they recieved over 40 days ago. I talked to the property manager two weeks ago and he said he approved the bill. They just seem to be taking their time cuting me a check. The last time I called him he said he would look into it and call me right back. It's been 4 days.

Mike Nelson

Senior Member
Naperville IL
Good Morning,
I think here in N.Y. you can only charge 2 or 21/2 percent a month! I am not 100% sure though.
Find out more info on Monday and let you know.


PlowSite.com Veteran
I ask my accountant this question a few weeks ago. He told me that I can charge 1.5%. Anyway,I'm charging 2% a month for late fees.


PlowSite.com - Veteran
Somerset, NJ
Each state has its own regulations regarding the amount that you are allowed to charge as late penalties & fees. Bob, I'd also ask your accountant what the penalty is if the state (or a knowledgable customer reports you) catches you over charging to see if it is worth the extra .5%.


PlowSite.com Addict
Hey 66, just a thought for next years contracts. Consider a
3% discount for payment within 7 working days. I've used this successfully with my construction company on T.M. contracts and they usually like it to. And I work the 3% in to the profit and overhead margin, so no loss on my part. Also I dont have to wait 60 to 90 days for my money. The bigger companys ussually love this as ANY savings to them is a good thing.