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TOPIC: Charging interest on outstanding accounts

Charging interest on outstanding accounts 13 years 5 months ago #599

Marie-Louise Nielsen OFFLINE Senior Boarder Posts: 49 Thank you received: 2 Karma: 0	Ok help! What are the rules when it comes to charging interest on out standing accounts?
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Re: Charging interest on outstanding accounts 13 years 5 months ago #600

Dylan Phelan
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I am no expert in this area - I think many small business owners would like to know this, so I'd really appreciate if those of you with better knowledge on this topic jump in here.

Legal requirements for charging interest on overdue accounts

It seems that you can charge interest on overdue accounts, but you will have to comply with the National Credit Act

You will have to meet requirements like the Pre-agreement disclosure. Search trought the National Credit Act for more info on that.

If you take a look at section 54 of the Act, it seems like the worst thing the National Credit Regulator will do is to issue a notice telling you to stop charging interest.

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Re: Charging interest on outstanding accounts 13 years 5 months ago #603

Marie-Louise Nielsen OFFLINE Senior Boarder Posts: 49 Thank you received: 2 Karma: 0	thanx! anyone got a quick link to the new Consumer protection act? I had it now I cant find it not sure were on earth i saved it...
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Re: Charging interest on outstanding accounts 13 years 5 months ago #604

Dylan Phelan OFFLINE Moderator Founder of mySmallBusiness.co.za Posts: 529 Thank you received: 48 Karma: 7	Here you go... Consumer Protection Act
	http://www.MSBonline.co.za - Web design, hosting, internet marketing & CRM http://www.MSBaccounting.co.za - Pastel accounting & bookkeeping services. http://www.ecohub.co.za - Natural health & wellness The administrator has disabled public write access. The following user(s) said Thank You: Marie-Louise Nielsen

Re: Charging interest on outstanding accounts 13 years 5 months ago #606

Marie-Louise Nielsen OFFLINE Senior Boarder Posts: 49 Thank you received: 2 Karma: 0	lol.. thats the same place I tryed to get it .. the gov.sight keeps giving me a server error mesage I'll try againe on monday!
	Last Edit: 13 years 5 months ago by Marie-Louise Nielsen. The administrator has disabled public write access.

Re: Charging interest on outstanding accounts 13 years 5 months ago #607

Dylan Phelan OFFLINE Moderator Founder of mySmallBusiness.co.za Posts: 529 Thank you received: 48 Karma: 7	I see - same problem on this side. It worked when I posted the link.
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Re: Charging interest on outstanding accounts 13 years 5 months ago #612

Michael van Eeden OFFLINE MSB Junior Member Posts: 3 Thank you received: 3 Karma: 0	Hi If, you are “an incidental credit provider” you do not need to register with the NCR. For example, if you are charging interest on overdue accounts, which allows for payment within 30 days and this fact is specified on invoices, then you are not required to register with the NCA. A 30-day account is not a Credit Agreement. Michael
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Re: Charging interest on outstanding accounts 13 years 2 weeks ago #884

The Odin Outline OFFLINE MSB Junior Member Posts: 7 Thank you received: 1 Karma: 0	We've also been wondering if there is a limit to the interest one can charge on overdue accounts? I seen some suppliers charge 26% per annum.
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Re: Charging interest on outstanding accounts 13 years 2 weeks ago #885

Kobus Buys OFFLINE MSB Junior Member Posts: 4 Karma: 0	Dont think there is a limit on interest you can charge, I think as long as you make it clear on your invoice that you will be charging ? % on overdue accounts
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Re: Charging interest on outstanding accounts 11 years 6 months ago #3085

Melanie McLaren
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Here are the facts. It becomes an incidental credit agreement and is subject to a maximum interest rate of 2%. You do not need to register as a credit provider for delinquent payers as no credit agreement is entered into. I have added the following to my contract.

1. Payment
1. Material costs payable with order.
2. 90% of balance payable on completion.
3. Retention fee is payable on completion of snag list (see 14)
4. Materials remain the property of xxxxxx until all invoices are paid in full.
5. Adminstration fees of R 500.00 per month will be added to overdue bills.
6. Maximum interest added monthly, compounded as specified by the national credit act will be levied on
overdue bills as per incidental credit agreements.
7. This agreement is not intended to be a credit agreement and is payable on date of completion.
8. Payment by EFT, Cash or Cash Cheque only.
9. Payment of Deposit denotes acceptance of Terms and Conditions.

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