What are Late Payment Fees and Reminders?
Late Payment Reminders and Late Fees allow you to remind your Clients about their outstanding Invoices by sending a reminder email and by charging a percentage or flat fee for any Invoices past their Due Date.
There are two areas within FreshBooks you can enable both reminders and fees:
When you're creating a new Client, or editing an existing Client, you have the option to enable Late Payment Reminders and Late Fees from the Client Settings:
When you're creating a new Invoice, you can also enable or disable Late Payment Reminders and Late Fees. A Client will need to be selected for the Invoice, and then you'll see the following:
Late Payment Reminders
You're able to send up to three Late Payment Reminders which are only sent to the primary Client (secondary Clients do not receive these reminder emails). These reminders can be sent at customizable intervals, x-number of days before or after the Invoice Due Date:
Clicking on the icon with three circles and lines will give you the option to enter a personal message to your Client.
- Late Payment Reminders won't send retroactively for any Reminders where the number of days has already passed on an Invoice's Due Date
- Late Payment Reminders are sent to the primary Client only - secondary contacts do not receive this email
- If you need to send additional reminders, you can always send a message by clicking on the comment icon at the top of any Invoice and writing a message - this will send an email to your Client with a link to the Invoice
Late Payment Fees
When it comes to Late Fees, on a brand new Invoice, you're able to either add a Percentage of the Invoice value, or a Flat Fee, x-number of days after the Due Date, which will be applied once. The Late fee is calculated based off the Subtotal of the Invoice (before Taxes). You also have the option to apply Taxes to the Late Fee if necessary.