How to Calculate Statutory Interest 2023

Wettelijke rente 2023 is compensation for the late payment of a monetary claim. It’s not a magic bullet to get paid, but if you aren’t able to agree to different payment terms with your clients or customers, it’s your legal right to charge them statutory interest. There are also a number of tools available to help you calculate the interest rates you can claim, such as the Small Business Commissioner interest calculator.

Statutorily, interest begins to run once a judgment is entered on the docket. The clear text of the statute states that interest is to be calculated “at a rate equal to the weekly average 1-year constant maturity Treasury yield published on the first day of each calendar week preceding the date of entry of the judgment.”

Smart Finance: Navigating the World of Statutory Commercial Interest in Business

Aside from the rate of statutory interest, you can also choose to use a higher or lower rate of interest depending on your relationship with the client or customer. However, it’s worth noting that you can only claim statutory interest if there isn’t already an agreed rate in your contract.

It is important to note that the statutory interest rate can only be used on money owed for goods and services supplied. It cannot be applied to debts incurred by way of an unsatisfactory arbitration award. This is because, once the award has been converted into a judgment, it becomes subject to post-judgment interest regulations. See Carte Blanche Int’l Pty Ltd. v. Parsons Whittemore Ala. Mach. and Servs Corp., 888 F.2d 260 (2d Cir. 1989).

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