Collection costs clause for freelancers
A collection costs clause: if you have to chase an unpaid invoice through an agency or lawyer, the client pays the cost.
Collection costs clause: copy and adapt
If any amount remains unpaid [30] days after its due date, the Client will reimburse the Provider for reasonable costs incurred in recovering it, including collection agency fees, court fees and reasonable legal fees, in addition to the amount owed and any late payment interest.
When to use it
In any contract with deferred payment. Most freelancers never use it; its job is to make not paying more expensive than paying.
Variants by trade
EU business clients
In addition to statutory interest, the Provider is entitled to a fixed compensation of EUR 40 per late invoice and to reasonable recovery costs above that amount.
Small invoices
An administrative fee of [amount] applies to each reminder sent after the second one.
Frequently asked questions
Can I charge collection costs to a client?
In most places, yes, if the contract says so and the costs are reasonable. In the EU, business clients owe a fixed EUR 40 per late invoice by law.
Is it worth sending an unpaid invoice to collections?
For larger amounts, often. This clause makes it cheaper for you, and a client who reads it tends to pay first.
Put this clause in a contract they sign today.
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These clauses are general templates, not legal advice. Laws vary by country and state; for high-value or unusual deals, have a lawyer review your contract.
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