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Ed Johnson
Ed Johnson, International HR Consultant
Category: Legal
Satisfied Customers: 10760
Experience:  GPHR cer BS, U.S.C. Pueblo; Immigration Law by Am. Mngmnt Association & USCIS Bus. Liaison ofc 1999
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What is Colorado law regarding invoicing and late payment ...

Resolved Question:

What is Colorado law regarding invoicing and late payment fees? I am a small business owner and have a company that is over 30 days late in their payment (amount due ~$2,000) Can I reissue another invoice with a late payment fee?
Submitted: 10 years ago.
Category: Legal
Expert:  Ed Johnson replied 10 years ago.

Dear faccac,

Yes, you are entitled to send out reminder invoices. However truth in lending and credit laws require that you inform them of a penalty if it is late.

This is usually done when the contract for service or product is initially made. (time of purchse).

for example: A penalty of 7% will be added to the bill for all bills paid greater than 30 days late. You shoud be running an aging report to indicate who is late by how much.

The Colroado usry laws limit the amount of interest you can charge to:

COLORADO, the legal rate of interest is 8%; the general usury limit is 45%. The maximum rates to consumers is 12% per annum

I would charge the 12% per annum rate for your circumstances.

Ed Johnson and 3 other Legal Specialists are ready to help you
Customer: replied 10 years ago.
Thank you for your response.

In this case, can I sent another invoice and add a penalty for late payments of 45 days or greater so they know they will be assessed the penalty if they don't pay in another 15 days?

Also - where can I find more information for these types of questions about CO business/entrepreneur laws?

Thank you!