2 Jews are in business. One of them has a 50% share in the business, which he supplies from his other business. The business he supplies owes him money to him. The two are now trying to dissolve the partnership. In the past this partner has never put pressure on for payment, because this was an ongoing transaction, and no payment of interest for late payments was ever mentioned. Now, however, that the partnership is being dissolved, the supplier is demanding payment, plus interest for overdue accounts. Is this permitted in halachah?
Answer:
It is permitted to demand payment of debt, but forbidden to demand payment of interest. Apart from the problem of ribis, I don’t see how he can demand payments of interest, if in the past interest-free credit was assumed.
