When is it reasonable to charge interest?

[blunomore]

One often sees invoices from professionals, i.e. doctors, dentists, lawyers where no interest is levied in the first 90 days of the debt.

on the contrary, when payment is late on e.g. credit card accounts, clothing accounts, interest gets levied.

When (if ever) would it be reasonable for us - a small consulting firm - to charge interest on payments?

Thanks.

 

[phiber]

30 days.

 

[supersunbird]

*drum roll*

When it's in your best interest!

*bidish!*

 

[Beginner]

Agree with phiber : 30days more then enough time for them to pay

 

[mikef]

Depends on your agreed account terms. My invoices state that they are payable on presentation and I generally expect payment immediately on completing the work. However even if my client does pay late and although my account terms specify that interest at 2% per month is payable on amounts outstanding for more than 30 days I will seldom raise interest unless I am firing the client anyway.