Late Fees on Invoices in Maine
What Maine contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
6% per annum (default legal rate); higher by agreement
Small Claims Limit
$6,000
Small Claims Court (District Court)
Mechanics Lien Deadline
90 days from the last day of furnishing labor or materials
Maine Prompt Payment Act
Maine Prompt Payment of Claims Act, 5 M.R.S. § 1551 et seq.
Maine requires state agencies to pay within 30 days. Private construction follows contract terms. Mechanics liens are governed by 10 M.R.S. § 3251.
Late fee rules for Maine invoices
Maine allows contractual late fees without a specific cap on commercial transactions. The absence of a commercial usury limit gives flexibility in setting terms.
Maine's default legal interest rate is 6% per annum. There is no general usury statute for commercial transactions, so contracts may specify higher rates.
Important disclaimer
This page provides general information about Maine 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 Maine.
Demand letters and mechanics liens in Maine
Maine does not require a demand letter, but a Notice of Claim must be given to the owner within 60 days of last furnishing for subcontractors.
Mechanics lien deadline: 90 days from the last day of furnishing labor or materials. A Notice of Lien must be filed with the county registry of deeds.
Sample late fee clause for Maine invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (6% per annum (default legal rate); higher by agreement maximum per Maine law) will be applied to all balances remaining unpaid after the due date. Pursuant to 10 M.R.S. § 3251 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 $6,000 in Small Claims Court (District Court)), and referral to collections.”
Stop chasing — let InvoiceFlows send the reminders for you
AI-written reminders that escalate from friendly to firm. Works for Maine contractors, tradespeople, and small businesses. $9/month, 30-day free trial.
Start Free TrialFrequently asked questions — Maine
What is the maximum late fee I can charge on an invoice in Maine?▾
In Maine, Maine's default legal interest rate is 6% per annum. There is no general usury statute for commercial transactions, so contracts may specify higher rates. Always disclose late fee terms in your contract or invoice before work begins.
Does Maine have a prompt payment act?▾
Yes. Maine requires state agencies to pay within 30 days. Private construction follows contract terms. Mechanics liens are governed by 10 M.R.S. § 3251.
What is the small claims court limit in Maine?▾
The small claims court limit in Maine is $6,000. Claims are filed in Small Claims Court (District Court). You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in Maine?▾
In Maine, 90 days from the last day of furnishing labor or materials. A Notice of Lien must be filed with the county registry of deeds.
Do I need to send a demand letter before filing a lien in Maine?▾
Maine does not require a demand letter, but a Notice of Claim must be given to the owner within 60 days of last furnishing for subcontractors.