Hello Forum Members,

I would really appreciate your help.

My employer (SA PTY LTD company) won a contract with a customer in Lesotho to provide Management Consultancy services.

Our first invoice was presented on 21st September and the contract terms are 21 days (18th October). According to the contract, we can charge interest but we must wait for a grace period of 15 days (2nd November) before doing so.

Our bank received the transfer on 22nd November, which cleared on 25th November. This is 35 days late (18th October to 22nd November).

We want to present an interest invoice for this period to send a clear message and to concentrate their minds for future contractual payments due throughout 2020. I am not sure of the Invoice wording required (to sound official quoting Acts, clause numbers etc)) and also the rate of interest to use. Researching on-line, I see 2% per month (24% per year) or 10% (base rate Repo + 3.5%), depending if it is Incidental Credit or the Prescribed Rate.

Over to you.

Thanks,Tonio