This Commissions Guide article relates to St George, Bank of Melbourne, and Bank SA Commercial loans. Articles related to other St George, Bank of Melbourne, and Bank SA 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
Commissions are payable where a broker is fully accredited to process St George Group commercial loans
| ex GST | inc GST |
Upfront - Facilities up to $4m | up to 0.5%* | Up to 0.55% |
Upfront - Facilities > $4m | up to 50% of establishment fee |
|
Trail - Facilities up to $250,000 | nil | nil |
Trail - Facilities > $250,000 | Up to 0.25% | Up to 0.275% |
* Subject to minimum establishment fee as set by the bank or otherwise negotiated
Upfront Commission
These commissions are subject to a maximum upfront commission of $45,000 or otherwise negotiated on each referred transaction and is calculated based on total amount of finance facilities approved and settled.
For Commercial Hire Purchase, Leasing, Equipment Rental or Chattel Mortgage if such a product is referred and settles then these products are eligible for a maximum up-front commission of 3% subject to the transaction meeting the bank’s terms and conditions for the asset being financed. The commission will be added to the loan amount financed for the referred customer.
For Commercial Bill Acceptance & Discount and Construction Loan is referred and settles then these products are eligible for a maximum up-front commission of up to 50% of the establishment fee charged subject to the transaction meeting the bank’s terms and conditions for the asset being financed.
For Invoice Discounting or Invoice Discounting Plus these products are eligible for a maximum up front of up to 100% of the standard service fee charged subject to the transaction meeting the bank’s terms and conditions for the asset being financed. The commission will be added to the loan amount financed for the referred customer.
No commission is payable on Property Development and Investment facilities above $10 million.
The lender reserves the right not to pay an upfront where they are unable to obtain their desired rates of return
Trail Commission
Trail commission is based on the loan balance at the end of the month and is paid monthly but is not paid on balances in the month of settlement and month of discharge.
If the average balance outstanding exceeds the banks approved limit for that facility, they will not pay trail commission on that portion of the average balance outstanding that exceeds the banks approved limits on that facility for that month
If a request for a new financial service for an existing referrer introduced customer is made by another referrer and that new financial service is approved and settled, then any trail commission payable on an existing financial service of that customer will no longer be payable to the original referrer but will be paid to the referrer of the new financial service.
For a facility that has been in arrears for a consecutive period of one (1) month or more trail will cease. Upon correction of all arrears on that facility, payment of any trail commission will recommence.
Approved Product List
Business/Commercial Overdrafts
Business Maximiser
Business Loan Variable
Business Loan Fixed
Construction Loan
Commercial Bill Acceptance and discount
Commercial Loan Variable
Commercial Loan Fixed
Invoice Discounting/Invoice Discounting Plus
Commercial Hire Purchase, Leasing, Equipment Rental and Chattel Mortgages
Clawbacks
Period | % Clawback |
0-12 Months | 100% |