Late Fees on Invoices in South Carolina
What South Carolina contractors and small businesses need to know about charging late fees, interest rates, prompt payment laws, and mechanics lien deadlines.
Max Interest Rate
1% per month (12% per annum) on construction; 8.75% default otherwise
Small Claims Limit
$7,500
Magistrates Court
Mechanics Lien Deadline
90 days from last furnishing
South Carolina Prompt Payment Act
South Carolina Prompt Payment Act, S.C. Code Ann. § 29-6-10 et seq.
South Carolina requires payment within 21 days on construction contracts. Late payments accrue interest at 1% per month. Contractors must pay subs within 7 days of receiving payment.
Late fee rules for South Carolina invoices
South Carolina has one of the stronger prompt payment acts — 21-day payment requirement with 1% monthly interest and attorney fees. This applies to private construction.
South Carolina's Prompt Payment Act provides 1% per month on late construction payments, plus attorney fees. The default legal rate is 8.75% per annum.
Important disclaimer
This page provides general information about South Carolina 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 South Carolina.
Demand letters and mechanics liens in South Carolina
South Carolina does not require a demand letter, but a Notice of Project Commencement should be filed, and a pre-lien notice served within 90 days.
Mechanics lien deadline: 90 days from last furnishing. A Notice of Lien must be served on the property owner and filed with the county clerk of court.
Sample late fee clause for South Carolina invoices
“Payment is due within the terms specified above. A late fee of 1.5% per month (1% per month (12% per annum) on construction; 8.75% default otherwise maximum per South Carolina law) will be applied to all balances remaining unpaid after the due date. Pursuant to the South Carolina Prompt Payment Act (S.C. Code Ann. § 29-6-10 et seq.), the undersigned reserves all rights to pursue collection including but not limited to mechanics lien filing, small claims action (up to $7,500 in Magistrates Court), and referral to collections.”
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Start Free TrialFrequently asked questions — South Carolina
What is the maximum late fee I can charge on an invoice in South Carolina?▾
In South Carolina, South Carolina's Prompt Payment Act provides 1% per month on late construction payments, plus attorney fees. The default legal rate is 8.75% per annum. Always disclose late fee terms in your contract or invoice before work begins.
Does South Carolina have a prompt payment act?▾
Yes. South Carolina requires payment within 21 days on construction contracts. Late payments accrue interest at 1% per month. Contractors must pay subs within 7 days of receiving payment.
What is the small claims court limit in South Carolina?▾
The small claims court limit in South Carolina is $7,500. Claims are filed in Magistrates Court. You generally do not need an attorney for small claims.
How long do I have to file a mechanics lien in South Carolina?▾
In South Carolina, 90 days from last furnishing. A Notice of Lien must be served on the property owner and filed with the county clerk of court.
Do I need to send a demand letter before filing a lien in South Carolina?▾
South Carolina does not require a demand letter, but a Notice of Project Commencement should be filed, and a pre-lien notice served within 90 days.