Thank you to all of our customers in the United Kingdom who have asked us for a new penalty type. Introducing Daily Interest Pro-rata.
This is used for those wanting to calculate a daily interest charge, prorated from a per annum charge.
This penalty type will take your interest rate and apply it to the outstanding balance. As this is per annum Latechaser will then divide it by 365 (the amount of days in a year) to get a daily interest charge.
Latechaser will then multiply the daily charge, by the number of overdue days (grace period) OR how many days since we last sent a penalty for this invoice.
You can find it in your penalty settings:
Important note: The best practice for this type of charge, especially if you're repeating the late fee, is to make sure they are being sent as 'New Invoice'. Otherwise compounding may occur.
We have followed the UK Government guidelines on how to calculate overdue interest here for reference on how we have implemented this.