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What is the difference between interest cost and finance charges?

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تم إضافة السؤال من قبل Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies
تاريخ النشر: 2014/06/28
Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

A finance charge represents the total amount you pay to a lender for borrowing money. Finance charges allow lenders to make a profit on the use of their money.

 

Interest cost is sum of the amount of interest paid on a loan by a borrower over the life of the loan relative to the cash received up front.

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