You've created your new Late Fee Policy, but how do you tactfully notify your customers that they will be charged a late fee if they don't pay as agreed?
Be Proactive: include your Late Fee Policy on all customer invoices created in your accounting software.
Invoices are a kind of contract between you and your customer. You agree to provide a product or service, and in exchange your customer agrees to pay you by a certain date. We always recommend that you consult an attorney in your local jurisdiction to ensure that you are using Late Fee Manager within your local usury laws and regulations, but including the details of your late fee policy on all invoices is generally always recommended. The more up front and available this information is to your customers, the less likely it is to cause a problem down the road. The videos below walk you through how to add your Late Fee Policy to your invoice template:
For QuickBooks users:
For Xero Users:
Email your customers a Late Fee Policy Notification
We provide a separate email template for the sole purpose of notifying your customers of your new Late Fee Policy, or any changes to it. (If you have recently signed up with Late Fee Manager, you may have seen the Late Fee Policy Notification Email Template during your initial set up. We added a Policy Notification step in our latest features update!). If you aren't familiar with that template, it's located on the Settings Page under the Late Fee Policy section:
Just like all of our email templates, it's completely customizable. We start you off with a general outline of the Late Fee Policy you created (based on your settings), but we encourage you to put your own voice to it. (For more instructions on editing Email Templates, click here). The video below will walk you through the Late Fee Policy Notification Email Template:
Be Persistent: Include your Late Fee Policy on your Payment Reminders
If you have Payment Reminders enabled, it's not a bad idea to include a disclaimer that a late or missed payment will result in a Late Fee. Some users choose to display their Late Fee Policy with bold print, some put a small note below the email signature, some don't even include it in the Payment Reminders. We try to give you as many options so you can run your business how you want to run it. Ultimately, you know your customers better than we do, and what it takes to get them to pay on time.