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

Virginia's rate when no rate was agreed

6% a year. 6% a year. On an open account with no written credit agreement, the seller of goods or services may collect interest at the legal rate on the unpaid balance only if the invoice is not paid in full within 60 days after it was mailed or presented; interest starts the day after that 60-day period. Courts use the 6% judgment rate for prejudgment interest when the contract fixes no rate.

• “A. The legal rate of interest shall be an annual rate of six percent.” — Va. Code § 6.2-301, read November 6, 2026
• “C. The seller or provider of goods sold or services provided on an open account shall be entitled to, and may collect, interest at the legal rate upon the unpaid balance if (i) there exists no written agreement for closed-end credit under § 6.2-311 or open-end credit plan under § 6.2-312 and (ii) the purchaser or recipient of the goods or services fails to make payment in full within 60 days after mailing or presentation of a billing statement or invoice. Such interest shall begin to accrue on the day following such 60-day period.” — Va. Code § 6.2-301(C), read November 6, 2026
• “B. If the contract or other instrument does not fix an interest rate, the court shall apply the judgment rate of six percent to calculate prejudgment interest pursuant to § 8.01-382 and to calculate post-judgment interest.” — Va. Code § 6.2-302(B), read November 6, 2026

The most you can set in Virginia

For a homeowner: 12% a year on a loan (§ 6.2-303), but a seller of goods or services extending credit under a closed-end installment plan or an open-end credit plan may charge the rate agreed with the buyer. §§ 6.2-311 and 6.2-312 let sellers of goods or services charge finance charges at the agreed rate under an installment or open-end credit plan (open-end: only if the plan gives at least a 25-day billing cycle to pay in full before a finance charge). It depends: see Va. Code §§ 6.2-303, 6.2-311, 6.2-312.

For a business customer: No usury defence on a business-purpose loan of $5,000 or more; otherwise as for consumers (12% on loans, agreed rate under a seller's installment or open-end credit plan). § 6.2-317 bars a usury defence for loans for business or investment purposes (not personal, family or household) of $5,000 or more. It depends: see Va. Code §§ 6.2-303, 6.2-311, 6.2-312, 6.2-317.

• “A. Except as otherwise permitted by law, no contract shall be made for the payment of interest on a loan at a rate that exceeds 12 percent per year.” — Va. Code § 6.2-303(A), read November 6, 2026
• “A. Any seller of goods or services who extends credit under a closed-end installment credit plan or arrangement may impose finance charges at such rate or rates as the seller and the purchaser have agreed.” — Va. Code § 6.2-311(A), read November 6, 2026
• “a seller or lender engaged in extending credit under an open-end credit plan may impose, on credit extended under the plan, finance charges and other charges and fees at such rates and in such amounts and manner as may be agreed upon by the creditor and the obligor, if under the plan a finance charge is imposed upon the obligor if payment in full of the unpaid balance is not received at the place designated by the creditor prior to the next billing date, which shall be at least 25 days later than the prior billing date.” — Va. Code § 6.2-312(B), read November 6, 2026
• “1. A loan shall be deemed to be for business or investment purposes if it is not for personal, family, or household purposes; and” — Va. Code § 6.2-317(A), read November 6, 2026
• “No person shall, by way of defense or otherwise, avail himself of the provisions of this chapter, or any other statutory or case law relating to usury or compounding of interest, to avoid or defeat the payment of interest, or any other sum, in connection with a loan made to a person for business or investment purposes, if the initial amount of the loan is $5,000 or more.” — Va. Code § 6.2-317(B), read November 6, 2026

Late fees in Virginia

What the text says: Up to 5% of the late installment/payment, only if specified in the contract; a payment is timely if made within 7 calendar days after the due date. Any lender or seller, any debt (installment or single maturity) — so it reaches a service invoice that is a debt under a contract specifying the charge. General rule for any lender or seller, on installment or single-maturity debts; excess late charges are void as to the excess. Sellers' closed-end installment plans are expressly tied to this section.

• “B. Any lender or seller may impose a late charge for failure to make timely payment of any installment due on a debt, whether installment or single maturity, provided that such late charge does not exceed five percent of the amount of such installment payment and that the charge is specified in the contract between the lender or seller and the debtor.” — Va. Code § 6.2-400(B), read November 6, 2026
• “"Timely payment" means a payment made by the date fixed for payment or within a period of seven calendar days after such due date.” — Va. Code § 6.2-400(A), read November 6, 2026
• “D. Any provision for late charges in excess of the amount permitted by this section shall be void as to such excess but shall not otherwise affect the validity of the obligation.” — Va. Code § 6.2-400(D), read November 6, 2026
• “1. Impose a late charge pursuant to § 6.2-400 ; and” — Va. Code § 6.2-311(C), read November 6, 2026

Does Virginia want it agreed in advance?

Agreed in advance: yes, in the cases below. The late charge must be 'specified in the contract' (§ 6.2-400). For interest: without a written credit agreement, only the 6% legal rate after the 60-day window of § 6.2-301(C); a higher finance charge needs a closed-end or open-end credit agreement with the buyer (§§ 6.2-311, 6.2-312).

• “B. Any lender or seller may impose a late charge for failure to make timely payment of any installment due on a debt, whether installment or single maturity, provided that such late charge does not exceed five percent of the amount of such installment payment and that the charge is specified in the contract between the lender or seller and the debtor.” — Va. Code § 6.2-400(B), read November 6, 2026
• “C. The seller or provider of goods sold or services provided on an open account shall be entitled to, and may collect, interest at the legal rate upon the unpaid balance if (i) there exists no written agreement for closed-end credit under § 6.2-311 or open-end credit plan under § 6.2-312 and (ii) the purchaser or recipient of the goods or services fails to make payment in full within 60 days after mailing or presentation of a billing statement or invoice. Such interest shall begin to accrue on the day following such 60-day period.” — Va. Code § 6.2-301(C), read November 6, 2026
• “A. Any seller of goods or services who extends credit under a closed-end installment credit plan or arrangement may impose finance charges at such rate or rates as the seller and the purchaser have agreed.” — Va. Code § 6.2-311(A), read November 6, 2026

Homeowners and businesses in Virginia

'business or investment purposes' means not personal, family, or household. In the source's own terms: personal, family, or household purposes vs business or investment purposes.

• “1. A loan shall be deemed to be for business or investment purposes if it is not for personal, family, or household purposes; and” — Va. Code § 6.2-317(A), read November 6, 2026
• “No person shall, by way of defense or otherwise, avail himself of the provisions of this chapter, or any other statutory or case law relating to usury or compounding of interest, to avoid or defeat the payment of interest, or any other sum, in connection with a loan made to a person for business or investment purposes, if the initial amount of the loan is $5,000 or more.” — Va. Code § 6.2-317(B), read November 6, 2026
• “B. Any lender or seller may impose a late charge for failure to make timely payment of any installment due on a debt, whether installment or single maturity, provided that such late charge does not exceed five percent of the amount of such installment payment and that the charge is specified in the contract between the lender or seller and the debtor.” — Va. Code § 6.2-400(B), read November 6, 2026

Prompt payment on private construction in Virginia

What the text says: Owner must pay the general contractor within 60 days of an invoice; late payment carries 'interest penalties consistent with § 2.2-4355' (that section sets the prime rate as reported in The Wall Street Journal for state agencies). Private construction contracts owner → general contractor → subcontractor (lower-tier flow-down: non-single-family-residential projects over $500,000). Va. Code § 11-4.6 covers private construction contracts (owner = not a public body). The flow-down of identical payment/notice/interest terms to lower-tier subcontracts applies only on projects other than single-family residential and over $500,000. It depends: see Va. Code §§ 11-4.6, 2.2-4355.

How the prompt payment rate moves: Prompt-pay interest only: prime rate as reported daily in The Wall Street Journal (§ 2.2-4355(B), applied to private construction by § 11-4.6).

• “In any construction contract between an owner and a general contractor, the parties shall include a provision that requires the owner to pay such general contractor within 60 days of the receipt of an invoice following satisfactory completion of the portion of the work for which the general contractor has invoiced.” — Va. Code § 11-4.6(B)(1), read November 6, 2026
• “Failure of an owner to make timely payment as provided in this subdivision shall result in interest penalties consistent with § 2.2-4355 .” — Va. Code § 11-4.6(B)(1), read November 6, 2026
• “Every subcontract between a subcontractor and a lower-tier subcontractor or supplier, of any tier, shall contain the identical payment, notice, and interest requirements as those provided in this subdivision if (i) such construction contract is related to a project other than a single-family residential project and (ii) the value of the project, or an aggregate of projects under such construction contract, is greater than $500,000.” — Va. Code § 11-4.6(B)(2), read November 6, 2026
• “"Owner" means a person or entity, other than a public body as defined in § 2.2-4301 , responsible for contracting with a general contractor for the procurement of a construction contract.” — Va. Code § 11-4.6(A), read November 6, 2026
• “B. The rate of interest charged a state agency pursuant to subsection A shall be the base rate on corporate loans (prime rate) at large United States money center commercial banks as reported daily in the publication entitled The Wall Street Journal.” — Va. Code § 2.2-4355(B), read November 6, 2026

Work out a late charge in Virginia

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

What was not checked for Virginia

• Virginia's 12% cap (§ 6.2-303) speaks of loans; no text read says whether a plain service invoice with an agreed interest rate is a "loan" (see also §§ 6.2-311 and 6.2-312).

Check Virginia's own text

Before you charge: read Va. Code § 6.2-301 and the other Virginia 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 Virginia with every state's answer, or with its neighbours just below.

Next door to Virginia

• District of Columbia: 6% if none agreed, 24% for homes
• Kentucky: 8% if none agreed, depends by agreement
• Maryland: 6% if none agreed, depends by agreement
• North Carolina: 8% if none agreed, depends by agreement
• Tennessee: up to 10% if none agreed (not fully confirmed)
• West Virginia: 6% if none agreed, depends by agreement

Official sources for Virginia

• Va. Code § 6.2-301 — read November 6, 2026
• Va. Code § 6.2-302(B) — read November 6, 2026
• Va. Code § 6.2-303(A) — read November 6, 2026
• Va. Code § 6.2-311(A) — read November 6, 2026
• Va. Code § 6.2-312(B) — read November 6, 2026
• Va. Code § 6.2-317(A) — read November 6, 2026
• Va. Code § 6.2-400(B) — read November 6, 2026
• Va. Code § 11-4.6(B)(1) — read November 6, 2026
• Va. Code § 2.2-4355(B) — read November 6, 2026

Every state in one file: Excel and CSV downloads

Where our data comes from