When Will Interest Start Accruing?

Objective:

  • When will I incur my bill's first interest charge?
  • Applying Interest to Bills 
  • When will I first be charged interest?

Environment:

  • Clio Web App

Additional Information:

For information on when interest is charged, see here.

Answer:

  • Interest is calculated on the bill during the grace period. However, the initial interest charge will not appear on the bill until the bill has been approved and the due date has passed. The initial interest charge will be calculated for the number of days between the issue date and the due date/grace period.

  • If the interest interval ("charged every ____ days") is the Same as the Grace Period, then the first interest charge will occur one day after the Grace Period. 

    • For example, if a payment profile has a 30 day grace period, and interest is charged every charged every 30 days, the first interest charge charge will occur on the 31st day, and will include charges covering the first 31 days.
  • If there is no Grace Period, then the first interest charge will occur the day of the invoice plus the interest interval ("charged every ____ days"). 

    • For example, if a payment profile has a 0 day Grace Period, and interest is charged every charged every 30 days, the first interest charge charge will occur on the 31st day, and will include charges covering the first 31 days.
  • If you are back dating a Bill, it can take up to 24 hours for the interest to apply. 
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