SeedIn understands that businesses can face challenges in repayments, resulting in delayed payment.
Based on SeedIn’s Collection Terms, borrowers are updated 7 days prior to the scheduled repayment date.
In an event Borrowers fail to make a full repayment by the scheduled date, SeedIn has the right to impose a Late Fee charge every 7 calendar days from the agreed repayment date. The Late Fee charge will be based on a percentage of the total outstanding Principal and Interest due.
Should a Late Fee be successfully imposed and received, the amount will be evenly distributed between Investors and SeedIn.
Invested – $1,000
Repayment Date – 1st of the month
Late Repayment Date – 8th of the month (7 Calendar Days Late)
You invested $1,000 in a Balloon Payment Deal at 12% p.a, 6 Months Tenure, assuming the scheduled repayment date is due on 1st of the month but the SME only repays on 8th of the month.
Presuming that both parties agreed to Late Fee Charges at 1 %.
You will receive $10 in interest and $5.05 in late fee for that month.
Late Fee = 1% x (Principal + Remaining Interest) divide by 2 = 1% x ($1000+$10) x 1/2 = $5.05.