Rules, grace and late fees
Set a circle's rules: grace days, late fee, guarantors, what happens if someone stops paying, and what members can see. And how to change them fairly.
A circle's rules are the agreement every member accepts. They say how long after the due date someone can still pay without being late, whether there is a late fee, whether a guarantor is needed, and what happens if someone stops paying after they have been paid. Because people agree to them, they cannot be changed quietly: a change is a new version, with notice.
Before you start
You need the manage permission. Set the rules when you create the circle, before anyone is added, because each person accepts the version in force when they join. The safe defaults are already filled in: late fees off, three grace days, reminders on, guarantor optional, and a case and plan if someone stops paying.
The rules you choose
You choose the rules in the last steps when you create a circle (New circle), and see them afterwards on the circle's Rules tab.
| Rule | What it does |
|---|---|
| Late fee | No late fee, A fixed amount, or A percentage of the contribution. Charged once for each missed payment, after the grace days. Members are told first, and it only becomes payable 48 hours later. |
| Most a fee can reach (₦, optional) | A cap. A percentage fee on a large contribution can never go above this. |
| Grace days | Days after the due date before a payment counts as late. They are counted in the circle's own days. |
| Guarantor | Not needed, Optional, or Required before joining. |
| If someone stops paying after they were paid | Tell the admins, Offer the member a repayment plan, or Open a case and offer a plan. Only for a rotating pot. Nothing is ever taken from other members or guarantors. |
| Send payment reminders | Reminders before and after a payment is due. Needs the Growth tier or above. |
| Keep people with a poor record out of the first payout positions | Applies the trust score when the draw is made. |
| Let members of this circle see each other's progress | Turns on the Circle board for a rotating pot. Members see names, payment status and payout position, never phone numbers, emails, addresses, bank accounts or notes. |
| How names are shown | First name and last initial (Adaeze O.) or Full names. |
A worked example
A weekly pot where each person pays ₦5,000.00, with a fixed late fee of ₦500.00, a cap of ₦1,000.00 and 3 grace days. Round 7 is due on Friday 16 October.
- Ngozi pays on Sunday 18 October, inside the grace period. Her round shows Paid late, and she pays no fee.
- Chidinma has still not paid by Tuesday 20 October. Grace ended on Monday, so on Tuesday a ₦500.00 fee is worked out for that round, and she is told.
- If she misses round 8 as well, she gets a second ₦500.00 fee, one for each missed payment.
With a percentage fee of 5% and a cap of ₦1,000.00, a ₦5,000.00 contribution gives a fee of ₦250.00. A ₦50,000.00 contribution would give ₦2,500.00, but the cap holds it at ₦1,000.00.
Change the rules
Rules are never edited. Changing them creates a new version.
Each member is only bound by the version they accepted. A late fee uses the version the member accepted that was in force on the day the payment was due. If a member never accepted a version, no fee is charged to them at all. So a change cannot be used to charge someone a fee they never agreed to.
Take effect now, before the circle starts
Rule changes normally take effect after 7 days' notice, so members have time to read them. Before a circle has started (Draft or Open), nobody is paying under the rules yet, so you can choose to skip the notice. When you publish a new version, tick Take effect now, without the usual 7 days' notice (phone: the switch with the same name). Members are told. If a change is already waiting, it is brought forward, so there is never more than one waiting. Once the circle is running this choice is no longer offered.
What happens next
Add your people. Each is shown the rules and must accept them (or an officer records that they agreed in person, with a note). See Adding and approving people.
Why a fee needs so much care
A late fee belongs to the circle, not to SocietyLedger, and it is never taken from a payout. It is only ever charged after the member has been told and had 48 hours. This is to keep a fee from being a surprise.
Related
Late fees, default cases, repayment plans and disputes
What happens when someone falls behind: how late fees are worked out and waived, how cases and repayment plans run, and how to decide a claim.
Joining a circle and accepting the rules
What to do when a circle adds you: read and accept the rules, confirm your phone if asked, and see what you are waiting for.
Guarantors
Record a guarantor's agreement for a member, in person or by sending them a link, and understand what a guarantor is and is not.
Last updated 30 October 2026
Cash reconciliation
How cash a collector takes in becomes confirmed money: recorded, handed over, counted, then confirmed, and what happens when the count is short.
Adding and approving people
Add people to a circle, see what each one is still waiting for, and approve them so they can start, including adding many at once from a list.