MoolahSense has a strict collection workflow to ensure delinquent Issuers pays back their overdues. Below is a chronological order of activities that will take place from T+1 (Where T is the scheduled payment date)
From T+1 to T+30: Calling and messaging Issuer and Guarantors reminding them to make payment as well as highlighting to them the daily late interest accrual. At this stage, this will be done by MoolahSense at our cost. Late interest rate of 30%p.a. will be charged on the overdue amounts beginning from the date of non-payment. The late interest charge is used to influence the Issuer in getting the Promissory Note payments back on track quickly and to discourage them from prioritising other creditors over their debt to the Promissory Note investors.
Formal Letters of Demand and Statutory Demand will also be issued to the Issuer and Guarantors if payments are not received within this period. A Statutory Demand is a warning letter (in the format prescribed under Bankruptcy Act) stating that if the Guarantors do not pay their debt under the Guarantees issued by them with respect to the Issuers’ Promissory Note, court proceedings can be commenced to make them bankrupt.
From T+31 onwards: We enlist the help of third-party professional debt collection agencies to recover the sums owed by the Issuer and Guarantor(s). The fees of the debt collection agency will be borned by the Issuer.
From T+180 onwards: Based on the information available to us, we may poll the investors for their consensus to pursue legal actions against the Issuer/Guarantor(s). We will provide an initial estimate of the costs to be paid by Investors should they agree to pursue legal actions. We will, to the best of our knowledge, share salient information that may be helpful to Investors in making their decision. Details of bankruptcy proceeding and the situations when these can be initiated can be found in the following public website: