[zcvosdfdgj]

>> This won't work in practice. There are laws in place to prevent sky-high compounding interest rates, late fees, etc.

True, but payments for services rendered are generally not considered loans and usury laws don't apply.

If I was doing business with this guy, I would be upset with this policy:

10% per week, every week, starting from the first day that the invoice is overdue. That means that if your invoice is due on Wednesday, and by Thursday you haven't paid it, I'll charge you 10% of the invoice again on top of the original amount.

How is the following day 1 week late?

Also, I agree with you on the NET 30. He gives 10 days to pay, and thinks that is standard. Got to be kidding me.

[Tyrannosaurs]

I think he means each week or part thereof.

[zcvosdfdgj]

No, he definitely means the following day. He continues:

If by next Thursday you still haven't paid, then that 10% turns into 20%. If you leave it for a month, congratulations, your invoice is now 150% of the original.

4 weeks in a month.. so:

day 1: 10% day 7: 20% .. day 30: 50%

It only works if he charges 10% the very first day it is late.

[Tyrannosaurs]

That's what each week or part thereof means - you pay for each week and partial weeks are rounded up to whole weeks (so one day = one week, one week and one day = two weeks, one month is four weeks and two days so would be five weeks and so on).

[zcvosdfdgj]

ok... that makes sense.

[Avenger42]

No, day 7 is still 10%. Day 8, it bumps up to 20%.