This Commissions Guide article relates to Bankwest Commercial Loans. Articles related to other Bankwest products can be found here:
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 (inclusive of GST)
| Trail Commission (inclusive of GST) |
Less than $25,000
| Nil | Nil |
$25,000 to $150,000 | A fixed payment of $500 (plus GST) per lending deal between $25,000 and $150,000 | Nil |
$150,000 to $3 million
| 0.55% of approved facility limit | 0.275% per annum |
Greater than $3 million
| 50% of establishment fee received by the bank with a minimum of $16,500. For 50% of the establishment fee to equal $16,500 Bankwest needs to collect $30,000 (1% of the loan amount (+GST). This is often not the case in which instance Bankwest will pay 50% of the establishment fee collected | Negotiable to a maximum limit of 0.275% per annum |
No upfront or trail commission will be paid on the provision of Bank Guarantee and Documentary Letter of Credit facilities
Commission will not be paid on any facilities:
Which are in arrears or otherwise in default in accordance with the facility terms. Once the facility is brought into order prior to the end of the respective commission month, payment of the commission will recommence at the next commission payment date. There will be no back dating of commission covering the period that commission was not received.
In excess of its approved limit. Once the facility is brought into order prior to the end of the respective commission month, payment of the commission will recommence at the next commission payment date. There will be no back dating of commission covering the period that commission was not received.
That is provided wholly or partly for bridging finance
That is refinanced as a result of a client-initiated request or consequent upon any default or not subsisting
Where Bankwest consider, in their absolute discretion that the broker 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 clients’ needs and a Facility is repaid in full or the facility terminated or cancelled within 18 months of the settlement date of the Facility, then the broker must refund to Bankwest an amount equal to the total amount of the Upfront amount paid to the broker in respect of that facility.
Where Bankwest 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 then the broker will
Refund to Bankwest total amount of commission and Upfront Amounts as well as any other amounts paid to the broker in respect of that facility.
The broker will not be entitled to any further payments in respect of that Facility, regardless of whether or not the broker was aware that any document was fraudulent, or any information was false.
Will cease to pay Commissions and Upfront amounts on any facility whatsoever introduced by the broker concerned.
Bankwest may cease to pay in relation to Facilities introduced by a broker if that broker acted dishonestly or fraudulently.
Bankwest will not pay an Upfront Amount or Trail Commission for an extension or in respect of any 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 trail Commission unless the broker has initiated and are the effective cause of the establishment of a replacement facility.
Clawbacks
When Business loan facilities are refinanced or repaid for any reason, up fronts are repayable based on the following:
Period | Upfront Clawback |
0 - 12 Months | 100% |
13 - 18 months | 50% |
Other Information and Conditions
If the broker charges or may charge a customer a fee for submitting a Facility application to Bankwest (whether a brokerage fee or application fee or any other type of fee) broker must obtain written acknowledgement signed by each client acknowledging that such fee will or may be payable by the client.