Late Fee on the Invoice in New Zealand
A late fee is charged to the customer when they fail to pay an invoice or make payment by the agreed date. The purpose of charging a late fee is to encourage customers to always make timely payments. It also serves as a way to compensate the supplier for costs incurred in working capital management.
In order to efficiently execute a late payment penalty, provision for it should be included in the contract along with the calculation method. It is important to note that the collection of late fees are regulated, so this means there is a strong need to abide by applicable regulations before implementing this policy.
Invoicing tools for New Zealand: