An Extended Credit Fee (ECF) is a charge applied when Nivoda extends your standard payment terms beyond the agreed period. This occurs when an invoice remains unpaid past its due date.
How is the fee calculated?
The ECF is calculated at a rate of 0.2% per day based on the total outstanding value of the overdue invoice.
Timing: The fee accumulates for every day the invoice remains unpaid after the due date.
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Application: Once the overdue invoice is settled, the total accumulated ECF will be applied as a line item on your next issued invoice.
Why was I charged an ECF?
If you see an ECF line item on your invoice, it is typically because a previous payment was received after the due date. This fee covers the cost of extending credit beyond our standard terms.
What should I do if I have questions about an ECF?
If you receive an invoice that includes an ECF line item and you were not expecting it, or if you believe it has been calculated in error:
Review your previous payment dates in Finance > Invoices.
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Contact us to review your payment history or your agreed payment terms.