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Understanding repayments
What happens in the event of early repayment?
What happens in the event of early repayment?

Is there an early repayment fee?

Written by Investor's Assistant (Sean)
Updated over a week ago

We always encourage SMEs to repay early if they can so as to reduce default risk for our investors. Depending on our agreement with the Issuer, we may charge a modest early repayment fee of 1% of the remaining principal for investors to compensate the loss of the remainder interest on the note.

E.g. You invest $1,000 at 12% p.a. into a 4 month note. You receive $250 x 2 in principal and $10 x 2 in interest for the first and second installments, but then the SME decides to pay off the remainder of the note. You will then receive your outstanding principal of $500 and $5 in early repayment interests.

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