This Commissions Guide article relates to Medfin 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
| ex GST | inc GST |
Business Loan products |
|
|
Upfront | 0.5% | 0.55% |
Trail | 0.182% | 0.2% |
Line of Credit Facility products |
|
|
Upfront | 0.25% | 0.275% |
Trail | 0.182% | 0.2% |
Draw Down Facility products |
|
|
Upfront | - | - |
Trail | 0.182% | 0.2% |
Upfront Commission
In case of a variation to a Business Loan or Line of Credit Facility, no Upfront commission will be payable at all if the net loan increase of a variation is less than $20,000 for such loans which were originated by Medfin.
In case of Business Lending Products, the net increase if any in the Approved Limit, no upfront commission will be payable at all if the net loan increase is less than $50,000.
In case of a Variation to a Line of Credit Facility, the net increase if any Facility Credit Limit, no upfront commission will be payable if the net loan increase is less than $20,000.
Except where an Upfront commission amount is negotiated, the maximum Upfront commission amount payable in relation to a Medfin Business Lending product is $27,500 (Inclusive of GST). However, in the case of an Eligible Loan Amount that equals to or exceeds $5 million the broker may request (directly, or through Medfin Credit Representative) they pay a broker an amount of Upfront commission in excess of $27,500 (inclusive of GST). They will consider any such request at their discretion and advise the broker of the outcome of their consideration.
Notes & Definitions
Eligible loan Amount: for each Business loan, the Approved Limit, for each Line of Credit Facility, the Facility Credit Limit.
Medfin Product: Means each of the Business Lending Products and Asset Finance Products which can be supplied upon request.
Trail Commission Period means for the first month of a business lending product, from Drawdown date to the last day of that month (or for the first month after draw down of a variation, from the Draw down date of the variation to the last day of that month); and for each subsequent calendar month, from the first day of the month to the last day of the month (or if the business lending product is repaid in full or trail commission ceases to be payable during the month, to the date the business lending product is repaid or trail commission ceases to be payable.
Variation means a variation to a Medfin product or a Medfin product that replaces a Medfin product on repayment or discharge with a new Medfin product issued to one or more of the original customers.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-24 Months | 50% |
If, on the date that is 6 months after the Drawdown date, the outstanding principal balance of a Business Loan is less than or equal to 80% of the principal balance of the Business Loan at the Drawdown date, broker must repay pro rata amount of Upfront commission calculated as follows: R = U – (A x Upfront Commission Rate) where R = Upfront commission to be repaid, U = Upfront commission previously received, A = outstanding loan balance on the date 6 months after the Drawn down date.
Where a Business Lending Product is fully repaid or discharged within 12 months of the Draw down date and is replaced by a variation within 1 month, Medfin at their discretion treat the variation as a new Medfin product clawing back Upfront commission and paying full Upfront commission on the new Medfin product; or disregard the discharge of the Business Lending Product and pay Upfront commission on any Net Lending increase.