How to set up interest rates.
Users can now charge interest on past due invoices. Interest owed can also be compounded if desired.
1. Click on your 'Settings'.
2. Click on 'Setup Interest Rates'.
3. Create interest rule title, term and rate and click 'Add Interest Rule'. Additionally, enable recurring, compounded interest and apply the interest rule to all unpaid invoices.
Interest Rule Title: This title description will appear on your invoices.
Term: Amount of days until the rule goes into effect.
Rate: The rate of interest you'd like to be applied.
- If this is NOT turned on, the interest will stop accruing after 1 term.
- If this IS turned on, this will continue toward all future balances.
Compound Interest: Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.
Apply to ALL unpaid invoices: If turned on this setting will apply interest to all invoices, even those with an invoice date prior to when this rule was applied to the matter. Interest will be charged on those pre-existing invoices moving forward. If this is turned off, interest will only be added to any invoices generated after this rule is applied to the matter.
* If you set a interest rate term of 30 days, after the completion of this term if a payment is back dated on the 30th day, interest will be calculated on the invoice.
Please contact Rocket Matter Support for any questions you may have.
Note: Interest can only be applied to fees and/or costs. Rocket Matter does not include interest on debit adjustments.