Everything freelancers and small businesses need to know about charging late fees, interest rates, and collecting overdue invoices in South Carolina.
This information is provided for general educational purposes only and does not constitute legal advice. Laws change frequently. Consult a licensed attorney in South Carolina for advice on your specific situation. Last reviewed: 2026.
Usury laws cap the maximum interest rate that can be charged on overdue payments in South Carolina.
8.75% per annum
South Carolina caps interest at 8.75% (S.C. Code § 34-31-20). Default rate is 8.75%.
Banks and licensed lenders are exempt. Commercial loans over $50,000 may be exempt.
Understanding what you can and cannot charge for late payments in South Carolina.
Late fees are allowed when contractually agreed. Must comply with the 8.75% cap.
No specific cap; interest-based charges limited to 8.75%.
Standard liquidated damages test.
South Carolina Prompt Payment Act sets deadlines and penalties for late payments in South Carolina.
30 days for state contracts.
Interest at 1% per month.
S.C. Code § 29-6-30 requires prompt payment on construction. State agencies must pay within 30 days.
Certain industries in South Carolina have additional rules around payment timelines, liens, and collection procedures.
Construction: S.C. Code § 29-5-10 requires mechanics' lien filing within 90 days.
Government contracts: 30-day payment with 1% monthly interest.
Tourism: South Carolina's coastal tourism industry follows standard commercial terms.
Use this compliant wording on your invoices to clearly communicate your late fee policy in accordance with South Carolina law.
Payment is due within 30 days. A late fee of 0.73% per month (8.75% per annum, the maximum under South Carolina law, S.C. Code § 34-31-20) will be applied to unpaid invoices.
This wording works because it clearly states the rate, when it applies, and references South Carolina legal standards. Always ensure your stated rate complies with South Carolina's usury limits.
Practical tips for invoicing within South Carolina's legal framework.
Before you can charge a late fee in South Carolina, your client needs to have agreed to the terms. Include your late fee clause directly on your invoice and in your contract.
South Carolina caps interest rates at 8.75% (statutory). 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.
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Compare South Carolina's rules with neighboring and commonly referenced states.
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