What is the legal interest rate a small business in CA can charge for an overdue account?

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2026-04-02 23:25

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In California, the legal interest rate a small business can charge for an overdue account is generally 10% per year, as specified by California Civil Code Section 3289. However, if there is a written agreement specifying a different rate, that agreed-upon rate can be charged instead. It's important for businesses to clearly outline any interest charges in their contracts to avoid disputes.

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