I the borrower lent money to the lender to start a business
payments are one the first of the month it is now the 9 of dec 2017 i have phoned now luck . The borrower is to pay installments of R17900 per month for 24 month a contract was sign by the lender and the borrower plus witness and the agreement was signed under oath
It is a high risk lending because there is no collateral to secure repayment of the money he borrowed in the event he defaults, such as this. Regrettably, private lending is not protected by the National Credit Act. However, I applaud you for reducing the agreement in writing. Your only recourse rests with the court of law. He has clearly breached the contract. What you should do is this: send him a letter of demand, demanding that he pays within 14 days. If after 14 days he fails to comply, then issue summons out of the Regional Magistrate’s court in the area where he resides or where the contract was concluded but only if the total amount is under R400000,00. If above R400000,00 then the High Court. You may need a lawyer to assist you draw up the summons and other necessary court papers. Thank you.