Late Invoice Payment Policy

Effective Date: 07/07/2025

Last Updated: 7/05/2025
Issued by: Cannon System Design LLC

This Late Invoice Payment Policy governs the terms, fees, and consequences associated with late or unpaid invoices for services and/or products provided by Cannon System Design LLC. By engaging with Cannon System Design LLC, clients acknowledge and agree to the following terms:

1. Payment Terms

All invoices are due and payable in full on or before the invoice due date.

Payment is considered received only when cleared funds are available in Cannon System Design LLC’s bank account.

 The mailing of checks, postmarked dates, or the initiation of ACH/wire transfers do not constitute timely payment. Clients are responsible for initiating payment in advance to account for bank processing time. Our bank typically clears payments within 24 business hours after receipt.

Invoices delivered electronically (via email or invoicing platform) are deemed received on the date of transmission. Clients are responsible for monitoring their designated channels.

2. Late Payment Fee

If full payment is not received within seven (7) calendar days after the invoice due date, a flat late fee of $45.00 will be assessed and added to the balance.

3. Monthly Interest on Overdue Balances

Starting on the eighth (8th) calendar day past the due date, a monthly interest charge of 2% will be applied to the total outstanding balance, including any late fees. Interest recurs monthly until the invoice is paid in full.

4. Application of Payments

Payments are applied in the following order:

1. Outstanding late fees

2. Accrued interest

3. Principal invoice balance

5. Suspension of Services

Invoices more than fifteen (15) calendar days overdue may result in:

• Suspension of services

• Withholding of product delivery

• Pausing or cancellation of current projects

Services will not resume until the account is brought current.

6. Collections & Legal Action

If payment is not received within forty-five (45) calendar days, Cannon System Design LLC may pursue:

• Collection efforts

• Legal action

• Referral to third-party collection agencies

The client is responsible for all associated costs, including attorney fees, court costs, and administrative fees.

7. Invoice Disputes

Clients must submit any dispute in writing within five (5) calendar days of the invoice date.

Failure to dispute within this period renders the invoice fully due and payable.

8. Returned Checks

Returned or dishonored checks will result in a $100.00 returned check fee, and the payment will be considered outstanding until replaced by cleared funds.

9. Accepted Payment Methods

Cannon System Design LLC accepts:

• ACH / bank transfers

• Business checks

• Wire transfers

• Credit/debit cards (if pre-approved)

Cash is not accepted. Other methods may require prior approval.

10. Partial Payments

Partial payments made without written agreement do not satisfy any portion of the balance and will not stop collections or late penalties.

11. Payment Plans

Payment plans may be approved at the sole discretion of Cannon System Design LLC and must be documented.

Default on a plan voids the agreement and accelerates the full balance due, including penalties.

12. Reinstatement Fee

A $25.00 reinstatement fee may apply if services are resumed following suspension due to non-payment.

13. Credit Terms Review

Cannon System Design LLC may reassess and revise a client’s credit terms or require prepayment at any time, especially in response to prior payment issues.

14. Administrative Hold on New Work

No new work will be initiated while any past-due balance remains unresolved. This includes previously approved quotes or scheduled projects.

15. Acceleration Clause

In the event of non-payment, breach of this policy, or consistent late payment history, Cannon System Design LLC reserves the right to accelerate the full balance of all current and future invoices and declare it immediately due and payable.

16. No Refunds for Work in Progress

Invoices for completed or partially completed services are non-refundable once work has commenced, regardless of client project status.

17. Internal Delays Not a Defense

Client remains fully responsible for timely payment regardless of internal finance delays, third-party systems, or approval processes.

18. Electronic Service of Notice

To expedite enforcement of this policy, Cannon System Design LLC reserves the right to serve legal or financial notices electronically using the client’s last known business email or other contact method provided at the time of engagement.

This shall constitute valid and binding service of notice in lieu of physical service, to the extent permitted by law.

19. Non-Waiver Clause

Failure to enforce any part of this policy shall not be construed as a waiver of future enforcement rights.

20. Governing Law

This policy is governed by the laws of the State of Texas, with venue located in Tarrant County, Texas.

21. Acknowledgment of Terms

By conducting business with Cannon System Design LLC, the client acknowledges they have read, understood, and agree to be bound by this Late Invoice Payment Policy.