Late repayment of principal
The day has come when, according to the information in the application, the project should have been terminated and at the same time your investment (principal) should have been paid out by the partner (project owner). However, you can't see the money in Investown's wallet yet. A couple of days pass and still nothing has changed. You are probably wondering where the problem has arisen and how Investown is solving it for you.
We do our best to avoid late payment of the principal, however, such a situation may occur. During the repayment of the loan, one of our colleagues at Investown is in contact with the partner, who is in charge of this communication. As the principal repayment deadline approaches, we are actively interested in what is the project's exit strategy — a plan to repay the principal to our investors. The plan may be, for example, the refinancing of the entire loan from Investown by another bank or non-bank company, the sale of the project and the payment of investors, or it may be reimbursement from other financial sources of the partner. We start this communication 9-7 months before the end of the project.
Six months before the planned end of the project, we communicate with our partner several times a month, verify that the exit strategy plan exists and our dedicated team assesses how realistic and safe the plan is for our investors' money. If we find at this point that a partner does not have a plan to lead the project to a successful Investown investor payout, we help them find it. We have the best experience in this procedure in history thanks to the extensive experience and networks of contacts of our colleagues.
Three to three months before the end of the project, we remain in contact with the partner and ask him to provide evidence of a specific plan and sources of further funding. If there is mutual agreement here, we terminate the project as planned, and investors get their money into Investown wallets.
If even at the moment the partner does not have a specific exit strategy, does not communicate or does not want to agree, we proceed according to the contracts or according to the GTC. At the same time, we have prepared steps to proceed if the partner does not respond to requests for payment. At the same time as the invitations are sent, there is also a fine partner according to the price list of fines.
Every day a partner delays payment, our investors are entitled to the payment of a contractual penalty. For projects with signed contractual documentation until June 17, 2025, the contractual penalty is 0.2% of the amount owed per day for each day of delay. For projects with documentation signed from 18 June 2025, the contractual penalty is set as follows: 0,1% of the amount owed per day for the first 30 days of delay, then 0,05% per day (according to Article 8 General credit conditions). Furthermore, the investor is entitled to interest on arrears in the statutory amount, i.e. according to Government Decree No. 351/2013 Coll. The current amount is 8% per annum of the amount owed plus the CNB's REPO rate valid on the first day of the half-year in which the partner defaulted.
How do we proceed?
Step 1. — 1st day from due date
We send the first request for payment of the debt, together with the penalty according to the price list.
Step 2. — 7th day from the due date
We send a second request for payment of the debt, together with a fine according to the price list.
Step 3. — 14th day from due date
We send a third request for payment of the debt, together with a fine according to the price list.
If even in this case there is no payment, we always proceed according to the individual procedure so that our investors get their money as quickly as possible. Therefore, we do not immediately resort to judicial enforcement, as this could mean freezing investors' money for months to years.
What other options do we have?
Step 4. 15th day from due date
We can pay off the entire loan
Step 5.
Proposal for execution by notarization (if the notarization is part of the project collateral). This would skip steps 6, 7, 8 and go straight to step 9.
Step 6.
We send a challenge to the guarantor (if any).
Step 7.
Court of First Instance
Step 8.
Court of Second Instance
Step 9.
Application for enforcement of a judicial decision/enforcement
Step 10.
Implementation of enforcement of court decision/enforcement
Step 11.
Claims returned to investors, case closed