Is a business required to disclose late fees or finance charges on an invoice in order to legally add charges for late payments?
I believe it's better business practice to discuss late fees or finance charges at the front end of a project. You may have difficulty from a legal standpoint trying to enforce something that's not in your contract. (and you should have a written contract for all work you perform for others.
Late fees are part of my contract that I use before I begin work. (the following is from my contract in the "Terms" section)
- Time for Payment All invoices are payable within 30 days of receipt. A 1 1/2% monthly service charge is payable on all overdue balances. The grant of any license or right of copyright is conditioned on receipt of full payment.
- Default in Payment The Client shall assume responsibility for all collection of legal fees necessitated by default in payment.
My invoices include the payment terms (i.e. Net 30 or whatever has been agreed to, and a note at the bottom with a restatement of the contracted late fee terms)