Interest Calculation Methods

I decided to have a bit of a read of the gripping saga put together by those oh so in touch with reality people in Canberra called the NCCP act. More specifically I was looking for the recommended calculation method we should use when charging our clients interest.

Funny thing is, I could not find any reference to this anywhere. Even though there is talk about different methods of required calculation in the analls of cyberspace – the NCCP act doesn’t tell us how to do it. Surprising really as it tells us lots of stuff we can and cannot do….

So, when your looking at setting up your Credit Contract be aware that you can use any form of calculation method you want, as long as it is disclosed to the client prior to them signing the credit contract that is. I would also recommend explaining it to them as well so they know what they are paying and how late and early payments will effect their loan with you

It is common practice for contracts to charge interest daily and compound it daily. Property loans from banks tend to charge interest daily and compound monthly. If the government is going to charge you interest they do it as  charge and compound daily.

Tags:

Want Email Updates on SSVF Property News and Information

We will not fill your inbox with crap.

You will only  get  1 or 2 emails

from us each moth.

100% Privacy. We don't spam. We don't share your details either.

Calendar

December 2017
MonTueWedThuFriSatSun
« Jan  
 123
45678910
11121314151617
18192021222324
25262728293031
Floating Social Media Icons Powered by Acurax Blog Designing Company
Visit Us On TwitterVisit Us On FacebookVisit Us On Google PlusVisit Us On LinkedinVisit Us On YoutubeVisit Us On PinterestCheck Our Feed
Web Design BangladeshWeb Design BangladeshMymensingh