Overdue Accounts Receivable

Overdue Accounts Receivable

Overdue Accounts Receivable

What is a percentage or dollar amount that is added to an overdue accounts receivable considered to be?

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Dec 07, 2017
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Accounts Receivable Finance Charge
by: Stephanie

Thank you for your question about overdue accounts receivable and what the dollar amount this is added to it is usually categorized as.

I believe what you are referring to is typically called a finance charge. You can set terms when sending invoices to customers that state what percentage of finance charge will be added to their invoice if not paid within a designated amount of time.

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