New: Dynamically update Bank of England interest rate + 8% for late fees
Did you know that Paidnice can accurately calculate your late payment interest charge using the Bank of England base rate?
Even when the debt spans over multiple rate changes!
In the UK, typically the interest you can charge if another business is late paying for goods or a service is ‘statutory interest’ - this is 8% plus the Bank of England base rate for business to business transactions. (source)
This can be hard to manage and calculate, especially with the frequent rate changes we are currently seeing which means overdue accounts may span over different interest rate changes.
That's why, within Paidnice, we have recently added the ability to automatically index an interest calculation of the Bank of England base rate as it was at the time of the debt. If a debt spans over multiple rates, then it will be prorated accordingly.
Learn more about how this works here, and sign up for free here.
