[Finance] Loan Default Payment

[Vin]

Afternoon all, al bit of advice needed please. I was late on repaying a bridging loan by 3 days. They have said I'm in default and have to pay the whole month interest not a daily amount. (please see clause below.) Obviously i want to pay a daily rate and any advice would be welcome.

In the event of default, higher lending charges will be incurred being an increase in the monthly interest to 5% per month compounded.

 

[Simster]

Seems ambiguous to me. You need something that explicitly states whether late payments are rounded by the day or month. In the absence of that, there is presumably a standard way of doing things you'll need to investigate.

 

[A mex eyecan]

when were you made aware of the penalty conditions?

 

[beorhthelm]

do they provide a daily interest rate? if not, reckon thats sufficient to infer the basis for default is monthly payment (probably same as the original loan). you'll end up spending money in legal fees if not careful.

 

[Paulie Gualtieri]

Afternoon all, al bit of advice needed please. I was late on repaying a bridging loan by 3 days. They have said I'm in default and have to pay the whole month interest not a daily amount. (please see clause below.) Obviously i want to pay a daily rate and any advice would be welcome.

In the event of default, higher lending charges will be incurred being an increase in the monthly interest to 5% per month compounded.

Hi Vin,

I work for Bank that offers bridging so might be able to help.

Typically if the loan due hasn’t been repaid in full on time this qualifies for a default event (Regardless of the circumstances, what was the exit, sale of property or refinance?)

Most reputable bridging lenders should have written to you, reminding due date at day 90, 28 and 14 before maturity and should have an extension policy in place.

If you could confirm lender (a few cowboys out there sadly) and terms (via DM I might be able to help)

Thanks

 

[Vin]

Hi Vin,

I work for Bank that offers bridging so might be able to help.

Typically if the loan due hasn’t been repaid in full on time this qualifies for a default event (Regardless of the circumstances, what was the exit, sale of property or refinance?)

Most reputable bridging lenders should have written to you, reminding due date at day 90, 28 and 14 before maturity and should have an extension policy in place.

If you could confirm lender (a few cowboys out there sadly) and terms (via DM I might be able to help)

Thanks

Thanks PG I’ll DM you tomorrow with details.

 

[Vin]

when were you made aware of the penalty conditions?

Yes as above clause.