Template · Letter

Late fee notice letter — sent when fees first start accruing

A late-fee notice is the polite, factual letter you send when an invoice has crossed the cure period in your contract and late fees have started accruing. It is not a demand letter (yet) and not a collections threat — it is a legally-clean notice that the fee clock has started, often required by state law to make late-fee accrual enforceable.

Use it for

  • First time fees accrue against a customer who has a written contract with a late-fee clause.
  • Customers you still want to keep — the tone preserves the relationship while preserving the fee.
  • Setting up the paper trail you will need if this invoice later goes to formal demand or court.
  • Any state where late fees become enforceable only after written notice (a few do — check your jurisdiction).

Do not use for

  • Customers without a written contract or signed engagement that contains a late-fee clause — you cannot bill a fee that was not agreed in writing.
  • Disputes over the underlying invoice amount — resolve the dispute before adding fees.
  • Final-notice or pre-collections situations — escalate to the demand letter template at that stage.

Variables to fill in

{{provider_name}}
Your business name.
{{customer_name}}
Customer's name (entity name for businesses).
{{invoice_number}}
Invoice number this applies to.
{{invoice_amount}}
Original principal amount due on the invoice.
{{invoice_due_date}}
Original due date of the invoice.
{{late_fee_rate}}
Late-fee rate from the contract (e.g., '1.5% per month' or '$25 per month').
{{accrued_late_fee}}
The late fee amount accrued so far. Calculate from due date to letter date.
{{contract_reference}}
Reference to the contract clause: 'Section 3 of our engagement letter dated [DATE]'.
{{governing_state}}
Governing-law state from the underlying contract.

The template

Select all and copy. Replace the {{double-brace}} placeholders with your details.

LATE FEE NOTICE

Date: [DATE]
To: {{customer_name}}
From: {{provider_name}}
Re: Invoice {{invoice_number}} — late fee accrual

Dear {{customer_name}},

This letter is a courtesy notice that late fees have begun to accrue on Invoice {{invoice_number}} in the principal amount of {{invoice_amount}}, originally due on {{invoice_due_date}}.

Under the terms of {{contract_reference}}, late fees accrue at {{late_fee_rate}} on any unpaid balance from the day after the due date until paid in full. As of the date of this letter, the accrued late fee is {{accrued_late_fee}}, and additional fees will continue to accrue daily until the invoice is paid.

The total amount due as of the date of this letter is the principal amount plus accrued late fees, payable to {{provider_name}} at [PAYMENT ADDRESS or PAYMENT URL].

This letter is not a demand for legal action and is not from a third-party collection agency. We would like to keep working with you and resolve this account directly. If there is a dispute about the underlying invoice or a circumstance preventing payment, please contact us at [PHONE] or [EMAIL] within seven (7) days of receiving this letter so we can discuss it before fees continue to accrue.

If you would prefer a payment plan, we can put one in writing — please reach out and we will set it up.

Sincerely,

{{provider_name}}

[STATE-SPECIFIC NOTE: A few states (notably New York and California for certain commercial contexts) require written notice before late fees become enforceable, even if the underlying contract contains a late-fee clause. Sending this letter in those states preserves your right to collect the accrued fees.]

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This template is general-purpose educational content, not legal advice. State law varies and attorney review is recommended before use. Syntharra is not your attorney.

Late-fee accrual is automatic — but the day-3 call is what actually gets paid. Connect QuickBooks and Syntharra handles both.

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