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Late Payment Clauses: What You Can Add to an Invoice

By InvoicesKitPro · · 5 min read

How to word a late payment clause, what the law allows in India, the UK and elsewhere, and how to follow up politely.

Why a clause helps

A late payment clause sets expectations. Even if you never charge interest, a client who sees it on every invoice is more likely to pay on time.

What the law says (in brief)

Rules differ by country, so check the current position for yours:

  • India: registered micro and small enterprises (MSMEs) can claim compound interest on payments delayed beyond 45 days under the MSMED Act
  • UK: businesses can claim statutory interest and fixed compensation on late B2B payments
  • EU: the Late Payment Directive sets default payment periods and interest for B2B invoices
  • Elsewhere: interest is usually only due if your contract says so

Wording you can adapt

"Payment is due within 30 days. Overdue amounts may attract interest at the rate permitted by law from the due date until payment."

Keep it calm and factual. Threats on an invoice rarely help.

Following up

Send a friendly reminder a few days before the due date, another the day after, then a firmer note after a week. In My invoices you can mark invoices as Sent or Paid, so you always know which ones need a reminder.

Ready to try it?

Add terms to your invoice

This guide is general information, not tax or legal advice. Rules change; check with your tax authority or accountant.

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