Georgia Late Fee Calculator
Calculate late fees for Georgia invoices using state-specific rules, maximum rates, and grace periods.
GA Quick Facts
Applicable Statutes
- O.C.G.A. § 7-4-2 (legal rate; maximum rate)
- O.C.G.A. § 7-4-16 (commercial account interest)
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Georgia Late Fee Rules
Georgia draws a clear line between late fees and interest. Late fees (a flat or percentage charge) have no statutory cap and can apply immediately, while statutory interest on commercial accounts is capped at 1.5%/month and only after a 30-day wait.
Legal default rate is 7%/year when no contract specifies a rate.
Commercial account interest capped at 1.5%/month (18%/year) on amounts 30+ days past due.
No statutory cap on late fees (as distinct from interest).
Late fees can be charged immediately; interest requires 30-day wait.
Worked Example: Georgia Late Fee
A $2,000 invoice 30 days overdue can carry an immediate late fee (no cap) plus statutory interest of up to 1.5%/month — about $30 — once the 30-day mark passes under O.C.G.A. § 7-4-16.
Important Note
Georgia distinguishes between late fees (no cap, immediate) and interest (18%/year cap, 30-day wait). This distinction is important for structuring your terms.
This information is for general educational purposes only and does not constitute legal advice. Georgia laws may change. Consult a licensed attorney in your state for advice specific to your situation.
Georgia Late Fee FAQs
What is the maximum late fee allowed in Georgia?
In Georgia (GA), the maximum late fee is: No statutory cap; can apply immediately after balance is overdue. The maximum interest rate is 1.5% per month (18% annually) on commercial accounts 30+ days past due. Always include late fee terms in your contracts before invoicing.
Is there a grace period for late fees in Georgia?
Georgia grace period: No grace period for late fees; 30-day wait before interest charges. Check your specific contract terms and applicable GA statutes for details.
What is the most common late fee rate used in Georgia?
The most common late fee rate for commercial invoices in Georgia is 1.5% per month. Georgia distinguishes between late fees (no cap, immediate) and interest (18%/year cap, 30-day wait). This distinction is important for structuring your terms.
Which Georgia statutes govern late fees on invoices?
The key Georgia statutes governing late fees and interest on invoices are:
- O.C.G.A. § 7-4-2 (legal rate; maximum rate)
- O.C.G.A. § 7-4-16 (commercial account interest)
Consult a GA attorney for advice specific to your situation.
Can I charge interest on overdue invoices in Georgia?
Yes. Commercial-account interest is capped at 1.5%/month (18%/year) and begins after the invoice is 30 days past due. Separately, you may also charge an immediate late fee, which Georgia does not cap.
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