Asked in Business Law and Construction Law for North Carolina

Q: What is the maximum late fee in NC for home improvement invoices.

Customers get in no hurry to pay final invoice payments. Can I add late fees to invoice and if so how much?

1 Lawyer Answer
Will Blackton
Will Blackton
  • Raleigh, NC
  • Licensed in North Carolina

A: North Carolina courts have generally held that late fees must be reasonable and not excessive, and should generally relate to the actual damages suffered by the contractor for late payment. If you plan to add late fees to your invoices, you should make sure that the fees are clearly disclosed in the contract or invoice and that they are reasonable and proportional to the damages you may suffer as a result of late payments. You should consider consulting with a lawyer to ensure that your late fee provisions comply with applicable laws and regulations.

Can you add late fees to an invoice, even without it being clearly disclosed in your service agreement? Sure, but your customer has no contractual obligation to pay that late fee.

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