Interest Charge on 30 Days Overdue Accounts Receivable

Interest Finance Charge

Interest Finance Charge

What is the industry standard for interest charged on accounts that are 30/90/120 days overdue?

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Dec 03, 2017
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Finance Charge Standards
by: Stephanie

There doesn't seem to be any across the board industry standard for interest charged on accounts that are 30/90/120 days overdue.

However, the range of terms that I have seen the most in my bookkeeping business doing the books for multiple different types of industries is 1-5% for 30 days overdue, 5-10% for 90 days overdue and 10-15% for 120 days overdue.

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