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Late Payments & Late Fees

This article explains what happens if a customer payment is received after the invoice due date and how late fees are handled in the Klear platform.

What Is Considered a Late Payment?

A payment is considered late if it is received after the invoice due date shown on the invoice and recorded in the platform.

The due date is determined by:

  • The invoice issue date

  • The agreed payment terms (e.g., Net 30, Net 45, Net 60)

What Is Not Considered a Late Payment

If a customer pays the invoice on time, but you intentionally hold the funds to use them for another purpose and plan to pay Klear back later, this is not considered a late payment.

This behavior is considered misuse of funds and fraud.

Once a customer payment is received, Klear must be paid immediately. Your customer should pay the invoice into your Klear financial account. Once the funds hit the Klear financial account, the Klear team will recover the funds advanced to you when the offer was funded. Funds must remain in the Klear financial account until the team has had time to do so. 

Removing funds from the Klear financial account after customer payment and before the Klear team has been able to recover the funds advanced may result in account restrictions, loss of funding eligibility, or legal action.

How Late Payments Are Tracked

Once an invoice is funded:

  • Klear monitors the invoice through its due date

  • If payment is not received on time, the invoice status will reflect that it is past due

  • Your CSM may reach out if additional documentation or confirmation is needed

How Late Fees Work

If a payment is received after the due date, late fees will apply.

Key points:

  • Late fees are calculated based on how long the payment is overdue

  • Late fees are applied once payment is received

  • Late fees are derived from the original offer fee on a pro-rata basis, based on the actual number of days the invoice remains outstanding

Late fees are not punitive — they reflect the additional time the funds remain outstanding.


What You Should Do if a Payment Is Late

  • Notify your CSM if you receive updated payment timing from your customer, with proof from the customer

  • Continue directing customer payments into your Klear account

  • Avoid rerouting payments outside the platform

Payments Going to the Klear Account Helps Prevent Late Fees

As you have discussed with your CSM, all of your customers must pay these funded invoices into the Klear financial account. Directing customer payments into your Klear account helps mitigate late payments by eliminating delays caused by:

  • Inter-bank transfers

  • Manual fund movement

  • Timing gaps between receipt and remittance

When customers pay directly into the Klear account, funds are received and reconciled, preventing multi-day delays that can otherwise occur due to bank transfer timing.