Darul Iftaa Mahmudiyyah

are we allowed to charge our customers for late payments?

· 20 Dhuʻl-Qiʻdah 1424 AH1 min readFatwa 10655English

Question

We have a wholesale business in which we give our customers credit terms e.g. Payment due from date of Invoice. Sometimes the customer does not pay on time and because of this, a small amount of a loss is made. What I wanted to know is, are we allowed to charge our customers for late payments? e.g. late payment fee? Can you interpret this dream? I saw in a dream two Crescent Shape Moons (or ¼ Shaped Moons) facing each other with stars scattered around at night in my dream. Is there a meaning to this? Wassallam.

Answer

It is not permissible to charge customers a late payment fee. If you feel that a customer will not pay timeously, then you may inflate the credit payments and the final amount due. This may assist in alleviating the loss due to late payments.

and Allah Ta'ala Knows Best

Mufti Ebrahim Desai

Answered by
Mufti Ebrahim Desai
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Source: Darul Iftaa Mahmudiyyah — https://askimam.org/public/question_detail/10655
Fatawa SA: https://fatawa.co.za/fatwa/askimam-10655

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