What happens if a borrower does not pay their interest?
On the rare occasion a borrower misses an interest payment, Southern Cross Partners has a robust process in place to manage the situation.
Borrowers who fail to meet their obligations incur additional default interest on top of their regular repayments. However, this does not automatically pass through to investors.
Southern Cross Partners, may elect to continue to pay your monthly interest even if the borrower does not. If not you are entitled to default interest, you will receive 50% of the actual default interest collected for the period your investment is in default. In some cases, we may need to negotiate these charges to achieve the best outcome, and this is done at our sole discretion.
We are conservative lenders, and loan defaults with Southern Cross Partners have historically been low. In the very rare instances that loan defaults impact our investors we will always communicate directly with those investors about the best course of action we are taking.