Glossary
Interest
Interest is the price of using someone else money, worked out as a percentage of the amount borrowed for each period.
What it means for a shop owner
It may be fixed for the whole term or variable. Compare offers using one yearly rate so you can see the difference. Interest is an expense that reduces your profit, so record it apart from running costs.
A worked example
A loan of 10000 at 8 percent a year. The interest after one year is 800.
Related
Try it in your shop, free, no card.
The free plan: the whole shop for one branch, an offline cashier with stock, debts and accounting, with a daily limit on invoices, expenses and purchase orders. What it includes