![]() Due dates are a big part of the process of getting paid on time. Penalties for overdue invoicesĪs a small business, late payments on invoices can make a big difference in your cash flow, affecting your budget and even daily operations. For example, if you don’t make a credit card payment on time, you’ll face a late fee that can be a percentage of the total owed. The penalty for not making a payment on or before a specified due date is generally fee-based. Consequences of payment after the due date Late payment is one of the major issues that freelancers, sole traders, and small businesses face regularly, so even if your due date is the standard 30 days from the date of issue, it can still be a reminder for the customer. It helps avoid any ambiguity about when the payment is expected and any potential for denial of knowledge of that topic. When it comes to invoicing, it’s important to add a due date to encourage quick payment.īecause an invoice is an official request for payment, adding the due date makes it clear for the customer. Once the date has passed, the payment is considered late and is subject to various consequences. In any case, the due date makes it clear that payment is expected on or before that date. Due dates can revert to a default standard depending on the situation or can be specified by the seller, for example. When a due date has passedĭue dates might seem arbitrary but often there are clear guidelines about when a due date occurs and what happens after that date. These dates indicate when the payment is expected and can result in a variety of different penalties in the case that the date passes without the specified payment being made. But essentially, it boils down to when a payment must be made before it’s considered late.Ī due date is found on invoices, loan payments, and credit card payments, just to name a few. Keep on top of your payments with SumUp Invoices - invoicing software.ĭue dates arise in a number of different contexts, even in the business world. Sort your invoices by the due date to keep track of your overdue invoices and follow up with customers who owe you. In business, a due date is the latest a payment can be made on an invoice or debt before it’s considered overdue.
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