Many businesses today impose finance charges on late payments such as credit cards and invoices whose payment due dates have been exceeded.
These finance charges add on to the company’s profit as consumers are late with their payments. The description of item purchased or service rendered is usually listed on the finance charge statement with the rate of charge stated for the actual computation of amount to be paid. Usually the charge is not very much due to the short overdue period but the amount can snowball if the invoice amount is not settled quickly.
Some companies impose daily rest while others impose bi-weekly or monthly rest on outstanding amounts. In the credit card environment, outstanding payments incur the agreed APR or annual percentage rate for computation of finance charges.
A finance charge template is used to help the company compute the necessary finance charges to its many clients. It helps the company perform the generation of debt collection payment faster and better. It allows safe storage and retrieval of transactions and payment information. You can change the interest rate to re-compute the payment due by different customers and terms.
A finance charge template may require the following information:
* Company Name & Address
* Customer Name & Address
* Date of Transaction
* Shipping Address
* Item of Transaction
* Invoice Number
* Description of item
* Interest charge rate
* Total amount payment
* Payment terms and conditions
Consider the attached sample template for your convenience.