Late repayment of interest
You look in the application to your portfolio, where orange text shines on you on some of the investments informing you that the project is in arrears of paying the proceeds. So you're probably wondering what Investown is doing about it, how it's progressing and when you can expect the returns from the investment to reach your Investown wallet.
We try to keep in touch with partners (owners of projects in which you invest) so that this situation does not ideally occur. However, as the number of projects invested increases, the chances that any of the projects will be in arrears with the payment of interest increases. Let's see together how we proceed if everything does not go according to plan. It is necessary to bear in mind that the solution of each case of late payment of the installment is very individual, and therefore it is impossible to follow a strictly set procedure. Investown's legal team always tries to choose the best possible course of action so that our investors get their money as soon as possible.
Once we have concluded a contract with the partner, we will also generate an installment schedule for him. During the repayment of the loan, one of our colleagues from Investown is in contact with the partner.
So that the partner does not have to think about the need to send a loan installment to Investown every month on a precisely appointed day, we advise him to set up a permanent payment order. This should be set up so that the payment from the partner's account leaves ideally 3 days before it is due. This avoids late payment on the grounds that some banks do not allow payments on weekends and holidays. Not all partners adhere to this recommendation.
Installment payments are regularly monitored by our internal system. Therefore, we always see what the incoming installments look like in a given week — which installments should arrive and which ones have already arrived. If there is any delay, our team is always in contact with the partner as soon as possible and we try to work together to find the ideal solution to the situation. We communicate proactively with our partner, meet in meetings and do not wait for the situation to turn out. At the same time, we have prepared steps to proceed if the partner does not respond to requests for payment. Simultaneously with the sent invitations, the partner is fined according to price list fees for project owners.
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. — 20th day from the due date
We send a qualified pre-trial request/pre-trial challenge
Step 5.
Proposal for execution by notarization (if the notarization is part of the project collateral). This would skip steps 7, 8, 9 and go straight to step 10.
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