Workeey is built for your phone. Scan the code with your phone to get the Android app, or open workeey.com on your phone. The iPhone app and a desktop version are coming soon.

Get the Workeey app. Same account, same jobs.

QR code — scan it with your phone to get Workeey from Google PlayGet it on Google Play
Free data

Interest on unpaid invoices in Alabama: 6% a year if no rate was agreed; the most you can set depends on the deal

By Yossi Grunwald, founder of Workeey · Updated

In Alabama, 6% a year if no rate was agreed; the most you can set depends on the deal. Read from Alabama's own statutes, agencies and courts, checked November 6, 2026, with every answer quoted below, and a late fee calculator.

Start free No card needed · free plan forever

Alabama's rate when no rate was agreed

6% a year. $6 per $100 a year (6%) on the loan or forbearance of money, goods or things in action except by written contract (Ala. Code § 8-8-1). Contracts for the payment of money bear interest from the day the money should have been paid (§ 8-8-8).

  • “Except as otherwise provided by law, the maximum rate of interest upon the loan or forbearance of money, goods, or things in action, except by written contract is $6 upon $100 for one year, and the rate of interest by written contract is not to exceed $8 upon $100 for one year and at that rate for a greater or less sum or for a longer or shorter time.” — Ala. Code § 8-8-1, read November 6, 2026
  • “All contracts, express or implied, for the payment of money, or other thing, or for the performance of any act or duty bear interest from the day such money, or thing, estimating it at its money value, should have been paid,” — Ala. Code § 8-8-8, read November 6, 2026

The most you can set in Alabama

For a homeowner: 8% by written contract (Ala. Code § 8-8-1), 'except as otherwise provided by law'; consumer credit under $2,000 financed falls under the Mini-Code finance-charge schedule (§ 5-19-3); $2,000 or more: any agreed rate (§ 8-8-5), subject to the Mini-Code's unconscionability rules. § 8-8-5 lets any person agree any rate on a loan, forbearance or credit sale with an original principal balance of $2,000 or more; it does not apply under $2,000.

For a business customer: 8% by written contract under $2,000 (Ala. Code § 8-8-1).

  • “the rate of interest by written contract is not to exceed $8 upon $100 for one year” — Ala. Code § 8-8-1, read November 6, 2026
  • “(a) Any person or persons, corporations, trust, general partnership or partnerships, limited partnership or partnerships, or association may agree to pay such rate or rates of interest for the loan or forbearance of money and for any credit sales as such person, corporation, trust, general partnership, limited partnership, or association may determine, notwithstanding any law of this state otherwise prescribing or limiting such rate or rates of interest; provided, that the original principal balance of the loan or forbearance of money or credit sales is not less than $2,000; provided further, that all laws relating to unconscionability in consumer transactions including but not limited to the provisions of Chapter 19 of Title 5, known as the Mini-Code, shall apply to transactions covered by this section.” — Ala. Code § 8-8-5(a), read November 6, 2026
  • “(a) Except under open-end credit plans, the maximum finance charge for any credit transaction where the original amount financed is less than two thousand dollars ($2,000), may equal but may not exceed the total of the following: (1) Fifteen dollars ($15) per one hundred dollars ($100) per year for the first seven hundred fifty dollars ($750) of the original amount financed; and (2) Ten dollars ($10) per one hundred dollars ($100) per year for that portion of the original amount financed exceeding seven hundred fifty dollars ($750) and less than two thousand dollars ($2,000).” — Ala. Code § 5-19-3(a), read November 6, 2026
  • “but shall not apply to any agreement involving the loan or forbearance of money or credit sales where the original principal balance is less than $2,000.” — Ala. Code § 8-8-5(d), read November 6, 2026

Late fees in Alabama

What the text says: Consumer credit transactions (Mini-Code): after a scheduled payment is 10 or more days late, a late charge of up to the greater of $18 or 5% of the late payment, capped at $100, once per payment (Ala. Code § 5-19-4(a)). Consumer credit transactions — credit extended to a natural person for money, property or services primarily for personal, family or household purposes, by a creditor who regularly extends credit with a finance charge (Ala. Code § 5-19-1). A single unpaid invoice with no finance charge or installments may not be a 'credit sale'. It depends: see Ala. Code § 5-19-1.

  • “(a) When a scheduled payment in a consumer credit transaction is in default 10 days or more, the creditor may charge and collect a late charge not exceeding the greater of eighteen dollars ($18) or five percent of the amount of the scheduled payment in default, not to exceed one hundred dollars ($100). The late charge may be collected only once on any scheduled payment, regardless of the period during which the scheduled payment remains in default.” — Ala. Code § 5-19-4(a), read November 6, 2026
  • “(2) CONSUMER. When used as an adjective with reference to a credit transaction, characterizes the credit transaction as one in which the party to whom credit is extended is a natural person and the money, property, or services which are the subject of the transaction are primarily for personal, family or household purposes.” — Ala. Code § 5-19-1(2), read November 6, 2026

Does Alabama want it agreed in advance?

Agreed in advance: Alabama's text read does not say so in general. A rate above 6% requires a written contract (§ 8-8-1).

Homeowners and businesses in Alabama

It depends: see Ala. Code § 8-8-5(a). Homeowner (consumer) credit gets the Mini-Code: capped finance charges under $2,000 financed and a late charge of at most the greater of $18 or 5% (max $100) after 10 days.

  • “provided further, that all laws relating to unconscionability in consumer transactions including but not limited to the provisions of Chapter 19 of Title 5, known as the Mini-Code, shall apply to transactions covered by this section.” — Ala. Code § 8-8-5(a), read November 6, 2026

Prompt payment on private construction in Alabama

What the text says: 1% a month (12% a year) on the unpaid balance when an owner, contractor or subcontractor does not pay as the chapter requires. Does not apply to residential homebuilders, improvements for residential purposes of 16 or fewer units, contracts or subcontracts of $10,000 or less, or contracts with state or local governments (§ 8-29-7).

  • “(d) If the owner, contractor, or subcontractor does not make payment in compliance with this chapter, the owner, contractor, or subcontractor shall be obligated to pay his or her contractor, subcontractor, or sub-subcontractor interest at the rate of one percent per month (12% per annum) on the unpaid balance due.” — Ala. Code § 8-29-3(d), read November 6, 2026
  • “This chapter does not apply to the following: (1) Residential homebuilders. (2) Improvements to real property intended for residential purposes which consist of 16 or fewer residential units. (3) Contracts, subcontracts, or sub-subcontracts in the amount of ten thousand dollars ($10,000) or less. (4) Contracts with the state or local governments of the State of Alabama.” — Ala. Code § 8-29-7, read November 6, 2026
  • “A party may not waive the right to receive interest before a payment is due under a contract subject to this section.” — Ala. Code § 8-29-5, read November 6, 2026

Work out a late charge in Alabama

Starts at Alabama's 6%, the rate when none was agreed, not a maximum.

Days since the due date
The rate or fee your terms set

$5.92 late charge

Days late
30
New total
$1,205.92

$1,200.00 × 6% a year × 30 days ÷ 365 = $5.92

What was not checked for Alabama

  • Alabama's judgment interest statute (Ala. Code § 8-8-10) was not read.

Check Alabama's own text

Before you charge: read Ala. Code § 8-8-1 and the other Alabama texts quoted on this page, or ask a lawyer. As of November 6, 2026.

This is a plain-words summary of each state's own laws as of November 6, 2026, not legal advice. Rules have exceptions. Check the state's own text, linked on every state's page, or a lawyer before you charge a late fee or interest.

Compare Alabama with every state's answer, or with its neighbours just below.

Next door to Alabama

  • Florida: floats if none agreed, depends by agreement
  • Georgia: 7% if none agreed, depends by agreement (not fully confirmed)
  • Mississippi: 8% if none agreed, depends by agreement (not fully confirmed)
  • Tennessee: up to 10% if none agreed (not fully confirmed)

Official sources for Alabama

Every state in one file: Excel and CSV downloads

Where our data comes from

Start free Free plan forever · upgrade only if it earns it