Avoid Late Fees
Always pay invoices on time and in full to avoid late fees. These incremental fees may seem small at first, but can run up a large total over the course of the year without you ever realizing it. Late payments are reported to the credit bureaus and can ruin your credit score. Making your interest rates rise and it harder to qualify for business loans.
Late payments can cost you a lot of money on interest and penalties. A 1% fee charged on a past due balance of $1000 will cost you $10, but paying this every month for one year will total $120. This may not seem like a lot, but if you are paying several bills late each month, the total late charges can accumulate quickly.
If you are already in a situation where you cannot pay all of your bills on time, choose the invoices that charge the highest fees to pay first in order to save the most on late fees.