Late Payment Policy Template (Freelancers) + Free Generator

Published Feb 9, 2026 · 6 min read

Most invoice problems aren’t “money problems” — they’re process problems. A clear late payment policy sets expectations, reduces awkwardness, and gives you the authority to pause work when invoices go overdue.

Need it now? Use our Free Late Payment Policy Generator to create a policy + invoice footer + client email in seconds.

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What a good late payment policy includes

• Payment terms: Net 7 / Net 14 / Net 30 (or due on receipt).
• Grace period: 0–3 days so normal AP delays don’t trigger drama.
• Late fee: optional (some clients hate this). If you use it, keep it simple.
• Consequences: “work pauses after X days overdue” is the real leverage.
• Where it lives: contract + invoice footer + reminder emails.

Copy/paste late payment policy template

Here’s a practical template you can drop into a freelance contract or Statement of Work.

## Payment terms
Invoices are due Net 7 (due within 7 days of the invoice date), unless otherwise agreed in writing.

## Grace period
A 3-day grace period is provided to account for internal processing delays.

## Late payments
If an invoice becomes overdue, work may be paused until the outstanding balance is paid.
A late fee of 2% per month (prorated daily) may be applied after the grace period.

## Payment methods
- Bank transfer
- Credit card

## Notes
Please reference the invoice number in the transfer description.

Prefer a markdown file you can keep in your repo/Notion? Grab the Late Payment Policy Template (free).

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The 1-line invoice footer you should use

Most late payments happen because invoices are “floating” with no urgency. Add a footer line on every invoice (you can generate one with the tool):

Payment terms: Net 7 (with a 3-day grace period). Late fee: 2%/month (prorated daily) after grace period. Work may be paused.

How to enforce it (without being a jerk)

1. Remind early: send a friendly note 1 day before due date if needed.
2. Be boring and consistent: “Per our payment terms…”
3. Pause work: stop deliveries on overdue invoices. This is what actually works.
4. Automate the emails: don’t freestyle this every time.

For ready-to-send reminder emails, use the Invoice Follow-Up Email Generator (free).

Conclusion

A late payment policy is less about “punishing” clients and more about protecting your schedule. Put it in writing, add the invoice footer line, and follow the same steps every time. If you want a clean version instantly, use the free generator above.