Late Fees on Invoices in Delaware
What Delaware contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
5% over the Federal Reserve discount rate; no specific statutory cap for commercial contracts
Small Claims Limit
$25,000
Justice of the Peace Court
Mechanics Lien Deadline
180 days from the last day of work
Delaware Prompt Payment Act
Delaware Prompt Payment Act, 29 Del. C. § 6516
Delaware requires state agencies to pay within 30 days. Private construction follows contract terms. The Mechanics' Lien Law provides enforcement for unpaid contractors.
Late fee rules for Delaware invoices
Delaware allows contractual late fees and has a relatively high small claims threshold of $25,000, making it accessible for contractors to pursue unpaid invoices.
Delaware's legal interest rate is 5% over the Federal Reserve discount rate. Commercial contracts can specify higher rates without usury restrictions.
Important disclaimer
This page provides general information about Delaware late fee rules. It is not legal advice. Laws change, and your specific situation may have unique factors. For disputes involving significant amounts, consult a licensed attorney in Delaware.
Demand letters and mechanics liens in Delaware
Delaware does not require a formal demand letter before filing a mechanics lien. However, sending one is recommended.
Mechanics lien deadline: 180 days from the last day of work. A Statement of Claim must be filed in the Superior Court.
Sample late fee clause for Delaware invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (5% over the Federal Reserve discount rate; no specific statutory cap for commercial contracts maximum per Delaware law) will be applied to all balances remaining unpaid after the due date. Pursuant to 25 Del. C. § 2701 et seq. (Mechanics' Liens), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $25,000 in Justice of the Peace Court), and referral to collections.”
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Start Free TrialFrequently asked questions — Delaware
What is the maximum late fee I can charge on an invoice in Delaware?▾
In Delaware, Delaware's legal interest rate is 5% over the Federal Reserve discount rate. Commercial contracts can specify higher rates without usury restrictions. Always disclose late fee terms in your contract or invoice before work begins.
Does Delaware have a prompt payment act?▾
Yes. Delaware requires state agencies to pay within 30 days. Private construction follows contract terms. The Mechanics' Lien Law provides enforcement for unpaid contractors.
What is the small claims court limit in Delaware?▾
The small claims court limit in Delaware is $25,000. Claims are filed in Justice of the Peace Court. You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Delaware?▾
In Delaware, 180 days from the last day of work. A Statement of Claim must be filed in the Superior Court.
Do I need to send a demand letter before filing a lien in Delaware?▾
Delaware does not require a formal demand letter before filing a mechanics lien. However, sending one is recommended.