When adding a new payment Term for your company, you can designate early payment discounts and late payment penalties.
Early Payment Discounts
Early payment discounts are a percentage discount you can offer to incentivize customers to pay invoices before their terms are complete.
For example, you can offer a 5% discount off the invoice total if they pay 10 days or more before the invoice due date (as shown above).
Late Payment Penalties
Conversely, a late payment penalty is a percentage or pre-determined dollar amount you can charge in addition to the invoice total if an invoice is paid late. You can add several late payment penalties so this amount increases the longer the invoice goes unpaid.
In the example above, the penalty being set is a charge of 10% of the invoice total after the invoice is 5 days late.