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Understand your invoice and fees

This article explains Defacto's billing and fees

Morgan avatar
Written by Morgan
Updated over 2 months ago

💡 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:

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