Adding Fees to Your Collection Account? The Dos and Don’ts

Adding Fees to Your Collection Account with Alacrity Collections

What is the best course of action to take when you are holding up your end of a deal, but your client isn’t paying their invoices? In truth, it’s a delicate situation that you will want to approach carefully in order to maintain a strong client relationship, steer clear of any legal issues, and of course, receive the payment you deserve.

Should I Add Fees to My Collections Account?

It may seem like adding late fees is the perfect way to discourage any further late payments, but it’s often not that easy. In most cases, customers will choose to dispute the fees. If any legal action is required from there, the charge will need to be temporarily removed as a result.

What Can I Do Instead of Assessing Late Fees?

There are several methods you can implement to receive payment and preserve your relationship with your client:

  • Ask for payment before completing the services.
  • Forgive the occasional late payment as a means to maintain positive relationships and make more money in the long run.
  • Reward future early payments with discounts.

What if Our Agreement Explicitly Allows Late Fees?

The only time you should consider assessing a late fee is if it is clearly stated that a fee may be added if a debt becomes delinquent. In that case, you may add it to the principal balance. We do not recommend phrasing this charge as a penalty, but rather a “financial charge” simply to avoid any potential legal complications down the road. Before pursuing this avenue, be sure to resend the original invoice and reach out to the client to see if there is a logistical issue preventing them from making the payment.

Hire Alacrity to Manage Your Collection Account

Alacrity Collections is proud to be a leader in debt collections since 1982. Chasing overdue invoices is not an effective use of your time. Let our team help so you can work on running and growing your company. We achieve great results that are over twice the national average and treat all of our customers with dignity and respect. We work tirelessly to protect your brand and improve your net returns. To learn more about our services and get in touch, please call us at 1-800-752-9663 or email us at

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