What are the different types of finance charges?

These types of finance charges include things such as annual fees for credit cards, account maintenance fees, late fees charged for making loan or credit card payments past the due date, and account transaction fees. An example of a transaction fee is a fee charged for using an automated teller machine (ATM) that is outside of the bank’s network.

What are financing costs?

It includes interest payments and fees the company pays the creditors for taking on short-term or long-term financing facilities. Equity holders need dividends and capital gains, whereas creditors require fees and interest payments. This article has been a guide to Financing Costs and their definition.

What are finance charges?

Finance charges are a form of compensation to the lender for providing the funds, or extending credit, to a borrower. These charges can include one-time fees, such as an origination fee on a loan, or interest payments, which can amortize on a monthly or daily basis. Finance charges can vary from product to product or lender to lender.