Everything freelancers and small businesses need to know about charging late fees, interest rates, and collecting overdue invoices in Maine.
This information is provided for general educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney in Maine for advice on your specific situation. Last reviewed: 2026.
Usury laws cap the maximum interest rate that can be charged on overdue payments in Maine.
No general usury cap; 6% default
Maine has no general usury cap. Default rate is 6% per annum (Me. Rev. Stat. tit. 9-B, § 432). Parties are free to agree to any rate.
No general cap, so exemptions are unnecessary. Consumer lending regulated separately.
Understanding what you can and cannot charge for late payments in Maine.
Late fees are allowed when contractually agreed. With no usury cap, businesses have maximum flexibility.
No statutory cap.
Standard contract law principles apply, including unconscionability review.
Maine Prompt Payment Act sets deadlines and penalties for late payments in Maine.
30 days for state contracts.
Interest on late payments.
Maine requires state agencies to pay within a reasonable time. Me. Rev. Stat. tit. 10, § 1116 provides construction subcontractor protections.
Certain industries in Maine have additional rules around payment timelines, liens, and collection procedures.
Construction: Me. Rev. Stat. tit. 10, § 3251 requires mechanics' lien filing within 90 days.
Government contracts: State agencies must pay timely with interest penalties.
Maritime: Coastal economy involves unique maritime contracts under state and federal admiralty law.
Use this compliant wording on your invoices to clearly communicate your late fee policy in accordance with Maine law.
Payment is due within 30 days. A late fee of 1.5% per month (18% per annum) will be assessed on unpaid invoices. Maine does not impose a general usury cap.
This wording works because it clearly states the rate, when it applies, and references Maine legal standards. Always ensure your stated rate complies with Maine's usury limits.
Practical tips for invoicing within Maine's legal framework.
Before you can charge a late fee in Maine, your client needs to have agreed to the terms. Include your late fee clause directly on your invoice and in your contract.
Maine caps interest rates at No general cap / 6% default. Charging above this limit can void your right to collect interest entirely and may expose you to penalties.
A reminder 3 days before the due date and a follow-up the day after dramatically reduces late payments. Automated reminders ensure nothing slips through the cracks.
If you ever need to escalate collection efforts in Maine, documented reminder history strengthens your position. Automated systems keep logs automatically.
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Compare Maine's rules with neighboring and commonly referenced states.
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