MoolahSense have put in place a process to manage late repayments from an Issuer (SME). There are three stages to this late repayment process, refer to the following:
Stage 1: If the Issuers (SMEs) misses, fails to pay or only partially pays the repayment on any due date, MoolahSense will activate procedures to email, SMS or call the issuer. Every action and feedback (or lack thereof) obtained from the Issuers (SMEs) will be recorded on the platform and communicated to all affected Investors.
Stage 2: If the Issuers (SMEs) fails to remedy the missed/late/partial repayment after forty five days, MoolahSense may activate the debt collection services of third-party professional debt collectors to collect the money on the Investors’ behalf. We currently partner with Thomas Carlington & Associates Pte Ltd. Thomas Carlington & Associates was established in 2005 by their CEO, Mr Thomas Choo, who has more than two decades of experience in credit information and debt recovery. Thomas Carlington & Associates is also a founding member of the Credit Collection Association of Singapore, while Mr Thomas Choo is the Vice-President of that Association.
Stage 3: If the missed/late/partially paid repayment remains not remedied after hundred twenty days from the onset of the first due date, MoolahSense may categorize the issuer as in “default”. This means that the note will be terminated and the outstanding balance (including interest till the end of the original term, late payment fee, late payment interest) will become immediately due and payable. MoolahSense will then seek out solutions and present cost-benefit analysis to the affected Investors. Affected Investors may be invited to vote to obtain a quorum to proceed on the next course of action, which may include authorizing MoolahSense to commence legal proceedings on behalf of the investors (with legal and other fees to be borne by the investors). MoolahSense shall also report such default in payment to the credit bureaus which will have a detrimental mark on the credit standing of the issuer.