Charging Interest on an installment payment?


Question:
I have a small business that provide services and training. I have flat fee for a specific training. Some of the clients may not be able to pay the full payment, for my service at once, so I offered an installment option and I want to add simple interest to it. Can I do that and/or can I choose my own interest for my clients to pay?

Answers:
Well, it depends on how long the installment period is. If its a short time, I would not worry about it. But for longer periods, you could do simple interest. Rate ? Use cost of capital, which is the interest/return you would have earned if you had invested that money. If you want something more complex, I can provide more information.

This article contents is post by this website user, HiAnswer.com doesn't promise its accuracy.



More Questions & Answers...
  • How do you become an eBay PowerSeller?
  • How long do I have to report an item not received on eBay?
  • Can I really make money of off eBay?
  • Trying to work from home! Any comments/complaints on Data Entry Made Easy?
  • How do u get 20 dollars fast and easy and legaly?
  • Accessing Paypal internationally?
  • Have you ever bought anything on Ebay?
  • I need your advice, is this a good website? www.debsoutpost.com?
  • How do i put my business name on your map of carpet cleaning services?
  • Business owner having problems with employees.?
  • Copyright 2006-2007 HiAnswer.com All Rights Reserved.