DEFAULT INTEREST CALCULATIONS

 

The right to default interest is a legal right of creditors towards debtors that fail to settle their due debt within the contractual terms.  It is advisable to charge default interest for all the problematic clients and debtors. Interest can be calculated for any claims that are not in the statute of limitations (the period of limitation is three years). Default interest should be calculated in accordance with the regulations valid at the time of primary debts emergence.

Interest calculation can also be used to check the default interest charged by the creditors of the company (suppliers, etc.).