Application preparation

Considerations & Information Required

Product choices Loan & Mortgage – Consumer
Chattel Mortgage – Commercial
Construction Loan – multiple drawdowns
Lease – Finance
Lease – Operating
Master Lease – Finance or Operating
Line of Credit
Financial position statement Assets
Current financial commitments
Profit & loss statements– past & projected
Tax returns – individuals
PAYG statements – consumers
Security on offer Financed goods – loans
Other collateral, equipment, shares etc
Guarantees – company,directors or individuals

Financing considerations

Fees and charges Property searches
Broker fees
Agent fees
Legal fees
Council/Government approvals
GST implications Upfront or over term
Ownership or lease Loan = ownership
Lease = hire/rental*
* There may be an option to buy at the end ofthe term but that is a separate contract and subject to negotiation
Maintenance arrangements – purchased/leased equipment Financed or separate
Depreciation & risks Impact on asset value at end of contract – lease implications for residual

Documentary requirements

Identification – Company, Trust and Individuals Company ACN/ABN
Trusts – Trust deed
Directors, trustees and individuals –personal ID
Financials Profit and loss statements
Tax returns
Bank statements
PAYG – year to date pay slips
Business plan & projections
Other – dependent on purpose Plans – construction
Environmental approvals

The application process

Completion of application with all supporting documentation Documentation must be complete before the application will be accepted and processed
Submission to chosen lender Bank preference – decision may be based on your key requirements e.g. bank reputation, interest rate, processing timelines etc
Bank credit assessment processes Identification, verification and risk assessments of entities and individuals involved
Politically Exposed Persons& Sanctions Checks
Credit Reporting Body Checks– corporations, directors and individuals
Trading history, cash flow and financials review and verification of information provided
Market indicators assessment
Environmental & other approvals granted, where relevant
Bank credit criteria applied
Credit decision Approved
Conditioned – further negotiations required


Standard processing times Average time = Same day to 4 business days dependent upon circumstances.
Possible delays Incomplete documentation
Additional documentation required
Terms and conditions to be renegotiated e.g. finance amount, interest rate, term, repayments structure etc
Additional security required
Environmental and other approvals to be provided

Contract formation

Documents Contract – loan/lease
Guarantee – corporate or individual
Payment methodology approval e.g. direct debit
Legal advice Recommended
Acceptance and signatures Authorised third party,directors or individuals
Settlement date By agreement