So, like most of the people starting out with own business, I picked a boiler plate contract and made minor modifications and used for a client project. You might already be familiar with this contract (used over and over on the internet): http://www.scribd.com/doc/13341916/WEBDEVT-Team-SPARKs-Website-Proposal-ver-12 (This is not our contract, but is a modification of the same template).
But now, the client is overdue on payment and I would like to use the terms of the contract to speed up payment. Terms are (see section 12 of the above).
Final payment of the remaining balance plus any additional charges incurred will be due within fourteen (14) business days after delivery of this email or letter and invoice. If payment is not made within fourteen (14) days of notification, simple interest will accrue on the balance owed at a rate of 18% from the date the payment was due.
Now, I'm not clear whether the interest is calculated daily or monthly or etc. Say for a payment of $7000 what's the interest for 30 days overdue?