Alabama Late Fee Calculator
Based on Ala. Code §8-8-1 (legal rate of interest)
QuickBillMaker applies late fees automatically based on your configured policy. Set it once and stop chasing payments by hand.
How Alabama late fees work
In Alabama, late payment fees on commercial invoices are governed by Ala. Code §8-8-1 (legal rate of interest). The legal maximum is 1.5% per month (18% annualized). Legal rate of interest is 6% per year; written contracts may set up to 8% per year (or higher for commercial). Late fees must be reasonable and contractually agreed.
The fee must be stated in a written agreement before the work is performed. Without a written rate, only the statutory default rate applies.
Alabama prompt-pay law
Alabama Prompt Pay Act (Ala. Code §41-16-3); construction §8-29-1 et seq. Construction: payment within 30 days of pay app; 1% per month interest if late.
Stop calculating late fees by hand
QuickBillMaker applies your Alabama late fee rate automatically when invoices go overdue.
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