💡 The billing frequency changed for loans taken after the 1st May 2024.
Monthly billing
We bill interest on a monthly basis for your loans based on the outstanding loan amount from the previous month.
Invoice posting: On the 1st of each month, we will post the invoice for all outstanding loan amounts of the previous month.
Charging of interests: During the first three days of the month, we will debit the interests from your bank account by Direct Debit.
Here is a diagram to help you visualise the monthly interest payments.
Your invoices
At the beginning of the month, we send you an invoice by email.
You can find the invoices for your loan interest fees in the "Billing" tab of your customer account. From this page, you can view a list of all your invoices and download them for your accounting.
Please note that any unpaid interest invoices 15 days after the payment date will result in the suspension of your account.
Our fees explained
When you take out a loan with us, we will charge you 'interest', which is not subject to VAT.
For greater flexibility, Defacto applies a daily interest rate of 0.05% on the loan amount in a "pay what you use" model, so once a loan is repaid, the interest stops accruing.
This interest is calculated on the basis of the amount borrowed and the number of days of the loan:
Interest = Daily interest rate x Amount borrowed x Number of days borrowed
💡 If you wish to finance a supplier invoice or receivable of €500 over 30 days, the price is 0.05%*30*500= €7.5 (or alternatively 0.0005*30*500).
To understand more about our fees: