Colorado late fee law

8%per year

Attaches to the debt by operation of law when you agreed no rate, so it accrues before any lawsuit and can be stated on a demand letter.

"If there is no agreement or provision of law for a different rate, the interest on money shall be at the rate of eight percent per annum, compounded annually." Text verified via FindLaw's reproduction of C.R.S. § 5-12-101 (Colorado's official statutes are hosted on LexisNexis and were not directly fetchable). Related provisions in the same article (C.R.S. §§ 5-12-101 to 5-12-107, including § 5-12-102 on interest for money wrongfully withheld) govern prejudgment interest - verify § 5-12-102's terms with counsel.

Yes - under C.R.S. § 5-12-103 the parties to a bond, bill, promissory note, or other written instrument may stipulate any rate greater than 8% but not exceeding 45% per annum, aligned with the criminal-usury ceiling of C.R.S. § 18-15-104 (knowingly charging a loan finance charge above 45% APR is a class 6 felony; written-agreement-based affirmative defenses exist). There is no lower special cap for commercial/B2B contracts - the 45% ceiling leaves wide room for agreed default rates.

public

Public construction contracts with public entities (contract price ≥ $150,000) only: C.R.S. § 24-91-103 requires the contractor to pay subcontractors within 7 calendar days of receiving payment; late payments accrue interest at the contract rate or 15% per annum, whichever is higher, from the required payment date until paid. Secondary sources confirm Colorado's prompt-payment regime does not extend to private projects or general commercial invoices.

No Colorado statute specifically regulating flat late fees on B2B invoices was found; the default liquidated-damages/penalty analysis applies. Given the 45% usury ceiling, agreed interest-style late charges in commercial contracts are almost never usurious; absent agreement, the 8% (compounded annually) statutory rate applies to withheld money.