VIC Late Payment Fee to Sole Trader Invoice?

Late payment fees need to be listed on your supplier terms of trade. If you have not told your customers you will add late payment fees then I don't think you can just add them because you are upset over late payments.

Do you have anything in your trading terms that talks about what happens if they don't pay by the due date?

If not, you need to send them a demand letter saying pay immediately or face extra costs and possibly be taken to court.

 

Best to create a new invoice with the description of what it is and which invoice it relates to.

That way if they dispute the late fee it is no excuse not to pay the original amount. Generally best not to amend invoices unless the receiving party agrees to the amendment or there is an error.

 

Hi @melanie87
Late payment fee clauses can vary by industry. The Victorian Government has a generic late payment clause example that you may consider as a starting point: Contracts for Fair Payments | Legislation & Regulations | Corporate Governance | Department of State Development, Business and Innovation

Hope this helps.