Why is Union Pacific implementing a finance charge on freight bills paid past credit terms?
Rates are established on the basis that freight bills will be paid within the agreed upon credit terms. However, over the past several years, the percentage of freight bills paid beyond these credit terms has increased. The late payment finance charge is intended to encourage adherence to credit terms. top When does Union Pacific’s new late payment policy go into effect? The new policy is effective for shipments tendered on or after November 1, 2001. top How is the finance charge calculated? The finance charge will be assessed after payment of a freight bill at an annual rate of 12% or 0.0329% per day for each day the freight bill was past due. The date a freight bill is due is calculated as invoice date plus credit terms. The days past due will be calculated as due date minus the date funds were received by Union Pacific. top How are the due dates for freight bills determined? The due date for freight bills is calculated from the date the freight bill/statement is issued. For customer
