Southern Cross Partners has two key measurements of loan performance:
This measurement looks at the number of loans that we manage that have payments that are in arrears for 30 days or more. We focus on the 30 day plus arrears as this is the trigger point that we use to advise Investors of potential problems with Borrowers. It is also because it is not unusual for loan payments to be slightly delayed due to payments falling due on weekends, or for borrowers to catch up missed payments over the following few weeks
Due to the large variances in loan sizes (which can regularly skew percentages), we report these loans as a number of total loans, as opposed to a dollar value
This measurement looks at the number of loans that are beyond their maturity date by 30 days or more. We focus on the 30 day period as it is not unusual for arrangements to be made to repay loans slightly after maturity. Again, we report on numbers rather than dollar values, as explained above
These figures are updated monthly and are reported as at the 1st of each month:
|Arrears||2 Loans representing 1% of the total number of loans|
|Expired||1 Loans representing <1% of the total number of loans|
Please note that this is historical information and is not necessarily an indication of what percentage of loans in the future may default or expire.
Borrowers, under loans which constitute consumer credit contracts (or regulated loans), do have a legal right to make application for Hardship relief if they are suffering from some unforeseen event. If this application is accepted by us, it may result in an extension to the loan term and/or a suspension of interest payments. This, of course, does impact on your investment, with either your payments affected and/or your investment term extended. If interest payments are affected, these will all be made up, to the extent possible, from payments received from a borrower, at a later, agreed date. Loans are not deemed to be in default while a hardship arrangement is in place.
Please note that this Hardship provision is available as a legal right. However, we are not obliged to agree or to alter loan terms, although borrowers do have rights of higher appeal if they believe that they are not being fairly treated
The number of loans managed by Southern Cross Partners Limited and subject to approved Hardship relief is:
|Hardship||0 Loan representing 0% of the total number of loans|