What Are Late Payments Costing You?
See what overdue invoices really cost your business — the financing cost of money tied up plus the time you spend chasing it.
For guidance only — a simple estimate to show the order of magnitude, not an exact accounting figure.
Result
It starts with invoicing immediately and setting clear terms. Create a professional invoice free — no signup, no watermark. Open the free invoice generator →
Late payment FAQ
What do late payments cost a small business?
Two real costs. First, the financing cost of money tied up: while an invoice sits unpaid you can't use that cash, so it carries a cost equal to your borrowing or opportunity rate for the days it's late. Second, the time cost of chasing: the hours you spend sending reminders and following up, valued at your hourly rate. This tool estimates both.
How can I get paid faster?
Invoice the moment work is done, set clear due dates and terms up front, and follow up consistently as soon as an invoice goes overdue. Polite reminders that escalate over time get most invoices paid without awkward calls. Start with a clean invoice from PaidPilot's free generator.
Is it worth charging late fees?
Often the policy itself does the work: stating a late fee on the invoice signals you take payment terms seriously, and a reminder that mentions the accruing fee nudges most clients to pay. Whether you can charge one depends on your contract and local law — see the late fee calculator to estimate the amount.