Late Payment Fees

By creavio Team April 10, 2026 1 views

Late Payment Fees

Chasing unpaid invoices is one of the least enjoyable parts of running a photography business. Late payment fees add a financial incentive for clients to pay on time — and they show that you run a professional operation with clear terms.

Enabling Late Fees

Go to Money → Settings → Late Fees to configure your policy. You have two options:

  • Flat fee — a fixed dollar amount added after the due date (e.g., $25)
  • Percentage — a percentage of the invoice total added per period (e.g., 1.5% per month)

Choose the option that aligns with your contract terms. Many photographers use a flat fee for smaller invoices and a percentage for larger ones.

Grace Period

Set a grace period between the due date and when the late fee kicks in. Common grace periods are 3, 7, or 14 days. This gives clients breathing room for legitimate delays — a payment that arrives two days late because of a bank processing time shouldn't trigger a penalty.

How Late Fees Are Applied

When an invoice passes the due date plus grace period, creavio automatically adds the late fee as a new line item. The client receives an email notification that a late fee has been applied, along with the updated invoice total and a payment link. If the invoice remains unpaid, additional late fees accrue at the interval you set.

Maximum Cap

Set a maximum late fee cap to avoid runaway charges. For example, if your late fee is $25 per week, you might cap it at $100 total. This protects you legally and keeps the relationship recoverable — a $500 late fee on a $200 invoice damages trust beyond repair.

Legal Considerations

Late fee policies should be clearly stated in your contract before the client signs. Springing a late fee on someone without prior agreement can create disputes. Include your late fee terms in your contract template and reference them on every invoice.

Waiving Late Fees

You can waive a late fee at any time. Open the invoice, click the late fee line item, and select Waive. Use this for long-term clients who hit a rough patch or for first-time offenders. The gesture builds goodwill.