This guide explains how to configure Finance Charges. For information on how to run Finance Charges, please see Add Finance Charges / Late Fees to Statements.

Access: Finance charge configuration is restricted by default, please have the business owner or general manager reach out to support@getmolo.com for access if it was not configured during Molo setup. Typically the business owner/GM and accountant are given this access.  


Finance charges are configured under the Admin Settings >> Accounting >> Settings Menu.  You will see three options, and their functions are explained below:


Note! - Before you can set a Finance Charge Item or Finance Charge Minimum Fee you must first create the items in the Inventory and Charges section of Molo.




1. Finance Charge Item (Required for Finance Charges):

This is the default finance charge item used when Finance Charges are triggered via the Statements Page.  This item will be added to all selected accounts when Finance Charges are triggered. More advanced finance charge configurations are available with the optional Finance Charge Minimum Fee and Finance Charge Minimum Balance settings.


Some common finance charge item configurations include:

  • Item Name: Late Fee, Amount: 1.5, Charge Method: Percent
    • Adding this would create an invoice line for "Late Fee" for 1.5% of the customers outstanding balance
  • Item Name: Finance Charge, Amount: 35, Charge Method: Flat fee
    • Adding this would create an invoice line for "Finance Charge" for $35 for any customer with an outstanding balance regardless of the amount.



2. Finance Charge Minimum Fee (Optional):

This is an optional/advanced setting, it allows you to configure a minimum fee charged, in the event the Finance Charge Item does not add an appropriate charge. This setting is always paired with a percentage type Finance Charge Item. 


Some common finance charge minimum fee configurations include:

  • Item Name: Finance Charge Minimum, Amount: 15, Charge Method: Flat Fee
    • This would be paired with a percentage finance charge item. For example, if your finance charge is 1.5% or $15 whatever is higher.  When running finance charges a customer with an overdue balance of $200 would receive a $15 invoice line for "Finance Charge Minimum".  A customer with an overdue balance of $2000 would receive an invoice line for "Finance Charge" for the amount of $30 (2000*1.5%).



3. Finance Charge Minimum Balance (Optional):

This is an optional/advanced setting, it allows you to configure a minimum threshold to apply finance charges. Customers with an outstanding balance less than the Finance Charge Minimum Balance will not receive any finance charges.


Some common finance charge minimum balance configurations include:

  • Setting of "50"
    • Adding this setting would prevent customers with an overdue balance of 50 or less from getting any finance charges added when finance charges are triggered.