What happens if a borrower defaults on a loan?

There are risks associated with loan investments. To reduce these, FundingPartner has a cooperation agreement with Advokatfirmaet Kontrakt, which acts as an agent and trustee on behalf of the lenders. Advokatfirmaet Kontrakt specializes in securing and collecting monetary claims, and is considered one of Norway’s leading law firms in this field.

Several factors can cause a loan to be deemed significantly defaulted, including substantial payment delays, suspected fraud, or deterioration of the underlying collateral. In such cases, Advokatfirmaet Kontrakt will initiate enforced debt collection on behalf of the investors in the loan. The agreement fee is based on time spent, at a rate of NOK 2,500 per hour, excluding VAT and are deducted from the collected amount. The complete agreement is included as an attachment to the terms of use, and can be viewed here.