Late fees and reminders
Payment terms that get paid, whether you can charge interest, and the automatic reminders CollabNorth sends.
Most late payments aren't disputes. They are invoices sitting in an inbox with no due date anyone noticed. Clear terms and steady reminders fix most of them.
Terms that get paid
- Put a real due date on the invoice, not just "Net 30".
- Agree on terms in the estimate, before the work starts.
- Make the payment instructions easy to find.
- Send the invoice the day the work is done, not at the end of the month.
Net 15 or Net 30 is common. Shorter terms suit small jobs.
Can you charge a late fee?
A late fee or interest is much easier to collect when the customer agreed to it in advance: in your contract or the accepted estimate, and repeated on the invoice. Adding one for the first time in a reminder is hard to enforce.
Keep the rate reasonable. If you state a monthly rate, also state the yearly rate it works out to. Federal law requires interest to be shown as a yearly rate, and limits how high it can be.
CollabNorth doesn't add late fees for you. If you charge one, add it as a line on a new invoice.
GST/HST on late fees
Interest or a penalty for paying late is generally not a payment for a supply, so GST/HST usually doesn't apply to it. Ask an accountant if late fees are a big part of your billing.
Automatic reminders
CollabNorth emails your customer a reminder on unpaid invoices that have a due date. By default, a reminder goes out:
- the day before the due date,
- on the due date,
- 3, 7 and 14 days after.
Each reminder goes once per invoice. Pick the days, or turn reminders off, in Settings, then Notifications. You can also tap Send reminder on an invoice at any time. Invoices are marked overdue once their due date has passed, in your business's time zone.
If they still don't pay
Call. A phone call is the fastest way to find out if something is wrong. If an invoice will never be paid, write it off on purpose rather than leaving it open. See Credit notes and refunds.
This is general information to help you keep your own records. It is not tax or legal advice.
Based on: CRA guide RC4022, General Information for GST/HST Registrants
Last checked: 2026-10-12