This guide article contains information specific to CBA Commercial products. Note that conditions and expectations applicable to CBA Residential loans may also be applicable to Commercial loans.
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the lender. If you believe anything is missing or inaccurate, please contact us.
Contents:
Commission Rates
Facility Limits Total | Upfront Amount (incl GST) | Trail Commission (Incl GST) |
Less than $150,000 | Nil | Nil |
$150,000 to $3 million | 0.55% of approved Facility limit payable on initial drawdown | 0.275% per annum calculated on the daily outstanding balance (not limit) and payable monthly in arrears. |
Greater than $3 million to $10 million | 55% of establishment fee received by the Bank payable on initial drawdown with a minimum of $16,500 unless otherwise agreed | Negotiable to a maximum limit of 0.275% per annum calculated on the daily outstanding balance (not limit) and payable monthly in arrears |
Greater than $10 million | Not greater than 55% of establishment fee received by the Bank payable on initial drawdown | Negotiable to a maximum limit of 0.275% per annum calculated on the daily outstanding balance (not limit) and payable monthly in arrears |
Stream Working Capital | $ 1 million are eligible for Upfront calculated at 55% of the establishment fee received by the Bank | Facilities from $ 1 million are eligible for Commission, negotiable to a maximum of 0.25% pa |
No commission will be paid on provision of Bank Guarantees and Documentary letters of Credit Facilities.
In determining the applicable Facility balances:
Undrawn limits on Facilities will not be included
Where a Facility is used in whole or in part to repay an existing borrowing from CBA, in calculating the loan balance of that facility, they deduct the amount required to repay the existing borrowing from the Facility balance outstanding at the end of each month; and
The face value of bills are taken to be the Facility balance.
CBA will not pay commission on any facility:
In arrears or otherwise in default in accordance with Facility terms
In excess of its approved limit
That is provided wholly or partly for bridging finance
That is refinanced as a result of a client initiated or consequent upon any default whether or not subsisting
That is repaid
That is refinanced by an external lender or party
May not in CBA’s absolute discretion pay commission or upfronts in relation to applications for Facilities where you are the client, or you are a relative or related body corporate of the client.
Commission will be calculated on the daily outstanding Facility balances for the approved term of each Facility and paid monthly in arrears. The upfront amount will be paid by the end of the month following the month of settlement.
CBA will not pay any commission on Facilities where any part of the Services relevant to a Facility for a client has been undertaken or performed by other areas of their network, other than for clarifying or advising on how those Services should be performed by broker, or for sales completion, or Facility settlement purposes.
A broker will not receive any upfront or commission for an extension or increase of the limit or amount of an existing Facility provided to a client unless the broker is the effective cause for the provision of that extended or increased limit or amount and the extension or increase is not less than $50,000
In the case of a Facility approaching maturity the broker will not receive any upfront amount or commission unless the broker initiated and are the effective cause of the establishment of a replacement Facility.
Clawbacks
Brokers will repay Upfront Amounts when Facilities are refinanced or repaid for any reason, other than in accordance with the terms and conditions of the relevant Facility, regardless of whether broker was involved with the refinance or repayment or not:
Period | Clawback |
0-12 Months | 100% |
13-24 Months | 50% |
A review of this provision may be conducted, in CBA’s absolute discretion and by way of exception, in the following circumstances: when facilities are refinanced by CBA at the Client’s request or when Facilities are repaid where they are satisfied there has been a bona fide repayment (excluding refinancing with another financial institution ) by the client.
Where CBA consider in their absolute discretion that the broker is seeking to refinance Facilities at a rate or in a manner which may constitute churning or engaging in conduct where the major reason for seeking to refinance facilities is the generation of remuneration rather than servicing of client’s needs, and Facility is repaid in full or the Facility terminated or cancelled within 18 months of the settlement date of the Facility, then broker must refund to CBA an amount equal to the total amount of the upfront amount paid to the broker in respect of that Facility.
Where CBA consider (in their absolute discretion) that they approved a Facility as a result of a Facility application that contained fraudulent documentation and/or materially false information, Broker will refund to CBA total commission and any upfront paid to the broker.
Commercial Connect Products
Eligible Products and Referral Fee Schedule effective from 1st May 2024:
Product | CONNECT Referral Fees |
Commercial Loans: Marker Rate Loan, Better Business Loan, Business Overdraft, Documentary Letter of Credit and Bank Guarantees
New product Stream Working Capital Added | Referral Fee of 0.55% of approved facility limit upon funding of initial drawdown. Maximum Referral Fee, per client, for eligible Commercial Loan Products is $27,500. Minimum loan size is $50,000. Excludes any loans less than 12 months. |
Vehicle and Equipment Finance provided packaged together with a Commercial Loan. Equipment Loans, Hire Purchase, Finance Lease, Novated Lease and Operating Leases. | 1.1% of net amount financed. Maximum Referral Fee, per client, for eligible Vehicle and Equipment Finance products is $5,500. Minimum transaction size $20,000. Must be submitted at the same time as an eligible Commercial Loan. |