Yes. But how much you can take depends on-- Is there an interest clause in the contract? How much is required by state law Whether or not the charges have been filed Let's be clear. In the case of a written contract If your 1099 contract states: Late payments shall accrue interest at 1.5% per month (or the maximum permitted by law). Then you can claim by contract: Monthly interest Calculated from the due date Calculated up to the date of payment Courts generally respect reasonable interest rates. However, it should not be too high (otherwise it may be considered illegal or fines). What if I don't have an interest clause? Even if it's not written, Statutory Interest may still be claimed in some states. For example, in California: Post-judgment rates are typically 10% p.a. Pre-judgement interest may also be claimed under certain conditions But only if: The amount is clear Arrears confirmation
Clear expiration date If even the expiration date is blurred, Interest is hard to claim. When does interest start? Normal: From invoice due date or after the deadline set in the reminder Not from the day you got mad. Can a small lawsuit claim interest? Yes. In small claims court: Contractual interest may be claimed or statutory interest But make sure you figure it out yourself. The judge won't count for you. What is the reasonable range of interest? Common commercial rates: 1% –1.5% per month 10% –18% per year Too high may be perceived as: Unreasonable liquidated damages Violation of usury laws What happens if I don't get interest? No clear expiration date
No written contract Amount dispute undecided Unreasonable in the opinion of the court Realistic Interest itself is not about making money. Yes: Making Delinquency Costly Increased bargaining pressure Compensation time value In many cases, after you list the interest, They'll choose to pay directly. Core Conclusions 1099 Interest can be claimed on: There is a contract → based on the contractual interest rate No contract Legal interest rate → according to state law (depending on conditions) The small claims court may claim But only if: Amount is clear and due. Interest is not given automatically. It's for you to claim.