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Unpopular opinion: Late fees hurt more than they help
Last month, a customer paid me three weeks late without any notice. Some folks say charging extra for late payments keeps your income safe, but others think it just makes customers leave. Do you enforce strict rules or go easy to keep things friendly?
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karencampbell1mo ago
My neighbor runs a small bakery and never charges late fees on her catering invoices. She says the good will it builds brings in way more repeat business than a ten percent penalty ever would. Is losing a reliable customer really worth the extra few bucks from a one time fee? Sometimes people just forget or have a rough month, it doesn't make them bad clients. That strict rule might just be pushing good people away over what is honestly not that much money in the grand scheme.
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oscar_henderson351mo ago
Look, late fees are needed. I have a clear rule: add 10% if payment is over a week late. This stops people from paying late. Being soft just leads to more problems.
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jessej2318d ago
Actually, that 10% after just a week is pretty steep... it can feel more like a punishment than a reminder. A grace period or a smaller fee after two weeks might work better to keep things paid without making good clients feel nickel-and-dimed over a simple mistake.
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