Late payment clause for freelancers
A late payment clause with interest, a pause-work right and collection costs. Wording freelancers can paste into any contract.
Late payment clause: copy and adapt
Invoices are due within [14] days of the invoice date. Overdue amounts accrue interest at [1.5]% per month (or the maximum rate allowed by law, if lower) from the due date until paid. If any invoice is more than [14] days overdue, the Provider may pause all work until the account is brought current, and delivery dates move accordingly. The Client is responsible for reasonable costs of collecting overdue amounts.
When to use it
In every contract where you invoice after starting work. Late fees are far easier to enforce when they were agreed up front than when they first appear on an overdue invoice.
Variants by trade
Flat fee instead of interest
Any invoice not paid by its due date incurs a one-time late fee of [5]% of the invoice amount, plus [1]% for each additional month it remains unpaid.
UK / EU freelancers
Overdue invoices accrue statutory interest and fixed compensation for recovery costs as provided by the applicable late payment legislation.
Frequently asked questions
What late fee can a freelancer charge?
1–2% per month is common. Check local usury limits; the clause above caps interest at the legal maximum.
Can I stop work if the client doesn't pay?
Only if the contract gives you that right, which is exactly what the pause-work sentence does.
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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.