What is the maximum allowable late fee percentage for overdue invoices? And for how long can these fees accrue? For example 25% late fee for invoices 30 days or more past due, then 25% per month on open balances thereafter?
While Delaware does not have a statute limiting the rate of interest it is advisable not to use a rate of interest that "shocks the conscience" of the court and risk having it struck down. This may also be affected by whether the transaction is a standard commercial one, or with a consumer. Business to business debts, where both parties have executed an agreement and have roughly equal bargaining power, can justify a higher interest rate (if the other party agrees to it). But the interest rate should be set forth in the parties contract, and not left unsaid until the other party receives their first invoice.