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This article aims to explain how finance charges are assessed. Finance Charges are generated by running the Statements Manager. Please refer to this article for more information on the Statements Manager.

Info

Finance Charge

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Formula

Finance charges are calculated using these formulas:

  • Assessable Balance x Monthly Rate (%) = Finance Charge

  • If Finance Charge is less than Minimum FC:

    • Finance Charge = Min. Finance Charge

  • If Finance Charge is greater than Maximum FC:

    • Finance Charge = Max. Finance Charge

The Monthly Rate (%), Min. Finance Charge, and Max. Finance Charge are set in the Finance Charges tab in the Statements Manager.

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What's the Assessable Balance?When the Statements Manager is run, it checks for the Assessable Balance, the portion of the balance that qualifies for finance charges. 

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