Hi Everyone,
My partner and I have a Self-managed Super fund (SMSF) and had signed a Loan Agreement with a property investor over a specific amount of money for a property development project for a 12 months term. In regards to the interest, the agreement states "Interest is 15% calculated annually in arrears". Now the project took 4 months longer than the agreed loan term, so 16 months in total, but the Borrowers are now refusing to pay interst for the additional 4 months with the explanation that the agreement states "interest calculated annually".
They say, only if the agreement would state "interest calculated monthly" we would be entitled to interest for the additional 4 months. I don't believe that and think we are entitled to interest of 15% for 16 months. Can anybody please help me?
Thanks a lot in advance!
My partner and I have a Self-managed Super fund (SMSF) and had signed a Loan Agreement with a property investor over a specific amount of money for a property development project for a 12 months term. In regards to the interest, the agreement states "Interest is 15% calculated annually in arrears". Now the project took 4 months longer than the agreed loan term, so 16 months in total, but the Borrowers are now refusing to pay interst for the additional 4 months with the explanation that the agreement states "interest calculated annually".
They say, only if the agreement would state "interest calculated monthly" we would be entitled to interest for the additional 4 months. I don't believe that and think we are entitled to interest of 15% for 16 months. Can anybody please help me?
Thanks a lot in advance!