Minimum payment composition
Set up how your customers' minimum payment will be calculated.
Introduction
At the end of each billing cycle, we will need to calculate the minimum payment, that is, the minimum amount that your customer will have to pay to avoid late charges.
Minimum payment composition
We will calculate the minimum payment based on the percentage (between 0% and 100%) that you assign to each of these parameters:
- Previous month's financed balance (revolving).
- Deferred statement (financing), that is, financing plans applied to previous statements.
- Cash advances.
- Commissions.
- Purchases for the period.
Let's see an example:
The customer sets up the following parameters from the product configuration:
| Revolving | 100% |
| Financing | 100% |
| Cash advances | 50% |
| Commissions | 100% |
| Purchases | 50% |
For a billing cycle where the end user made purchases of $ 5,000, cash advances of $ 2,000, and had commissions of $ 1,000, the minimum payment is calculated as follows:
| PARAMETER | CALCULATION | RESULT |
| Purchases | $ 5,000 * % 50 | $ 2,500 |
| Cash advances | $ 2,000 * % 50 | $ 1,000 |
| Commissions | $ 1,000 * % 100 | $ 1,000 |
| Total minimum payment | $ 2,500 + $1,000 + $1,000 | $ 4,500 |
The minimum payment amount according to the product configuration specifications is $ 4,500.
Minimum amount
You will also need to set a minimum amount. This means that if the calculation of all parameters gives us a value lower than the minimum you set, we will use that as the minimum payment.
Let's see an example:
The calculation for the concepts gives a minimum payment amount of $ 100, but the minimum amount you configured is $ 200. So, the minimum payment will be $ 200, as long as it does not exceed the total debt.