| HOW TO HELP YOUR COMMERCIAL FINANCE | | | | but the ABR needs to make specific note of this |
| APPLICATION SUCCEED -THE THREE CRITICAL | | | | when submitting the application to Commercial |
| FACTORS | | | | Finance Lenders. We do caution however that this |
| These days, whether you are borrowing $500,000 | | | | tends to slow down the process, and we find this |
| for your first Propery Development or Refinancing a | | | | defeats a great deal of the benefit to the ABR from |
| $50,000,000 Equity Line of Credit, it's all about a few | | | | our offering ( i.e. the ABR still needs to be actively |
| critical factors in determining the Funding Application | | | | involved in the packaging / submission of applications |
| outcomes. Understanding these will give you a much | | | | ). |
| improved chance of obtaining commercial funding. | | | | What information / documentation is necessary from |
| RISK: It may well be a great Project, but if there are | | | | my client, in order for an application to be submitted |
| delays, cost increases, lower Sale prices, how will the | | | | by Commercial Finance Lenders? Although each |
| Lender recover their money? | | | | financial product or capital structure to be arranged |
| REWARD: See above. Lenders actually lend money to | | | | may have a unique or specialised ‘recipe' of |
| make a profit. Sounds obvious, but many borrowers | | | | required documentation, most applications or capital |
| forget this at their peril. | | | | structures will require the submission of at least the |
| EQUITY: If you can demonstrate you have a | | | | following basic five items of standard documentation, |
| significant amount of your own funds invested in the | | | | eg: full personal & company A & L , Project |
| Project it always helps in getting to the front of the | | | | Cashflow, Business Plan, completed Questionaire & |
| queue. After all, if the Lender wanted to build | | | | Application. |
| anything from a Rainforest Retreat in the jungle to | | | | What benefits are there for a professional finance |
| an Apartment Complex in Adelaide using 80%, 90%, | | | | broker in joining our ABR Programme? |
| or 100% of borrowed funds , they could do it | | | | Independent or even affiliated finance brokers who |
| themselves. | | | | join Commercial Finance Lenders as ABR's, receive |
| SUMMARY: Various weighting factors & averages are | | | | the following advantages: Credit markets and |
| applied to all the above. Knowing how to present this | | | | financiers have become very conservative, given the |
| information is a key element, and can add much to | | | | global credit crisis and volatility in the world's financial |
| your chances of success. | | | | markets. |
| FINANCE BROKERS! *We have an excellent program | | | | Approval rates for applications for most forms of |
| to assist you* | | | | finance have halved ( or worse ), and now more |
| Finance Broker Support ("ABR" program) | | | | than ever an application for finance needs to be |
| Commercial Finance Comparison Lenders offers a full | | | | diligently and skilfully prepared / packaged in order to |
| service back-office and deal management solution for | | | | stand a chance of being approved; Our team is |
| professional finance brokers ( i.e. professionals | | | | specifically skilled and experienced in this aspect, and |
| engaged in regularly arranging finance on behalf of | | | | is able to seamlessly add this value to any application |
| clients, for reward ). | | | | referred through Commercial Finance Lenders. |
| The principle behind this service offering is that a | | | | Commercial Finance Lenders & associated Partners |
| professional finance broker is able to focus on | | | | has contractual relationships to provide business to |
| obtaining and maintaining clients / relationships, while | | | | more than 30 various financial institutions and capital |
| Commercial Finance Lenders handles the "admin" or | | | | providers, many of whom may be more aggressive |
| "packaging" and "follow-up" elements of an application. | | | | or have a specific appetite for a particular type of |
| Professional finance brokers interested in this service | | | | finance. |
| are invited to join the Finance Broker Support | | | | We are uniquely able to analyse any application, and |
| program as an Authorised Business Referrer ( "ABR" | | | | submit it to the most appropriate financier or capital |
| ), and instantly receive the benefits of our complete | | | | provider ( and often are able to submit to multiple |
| back-office support structure. Our ABR network is | | | | financiers ). This ensures the best possible chance of |
| growing to be one of the largest in the country - and | | | | a successful application for your client.Due to the |
| the value of being part of a winning team under a | | | | volume of applications submitted by Commercial |
| recognised brand is becoming more and more critical | | | | Finance Lenders to financiers, we are usually able to |
| for any independent broker or arranger of finance | | | | obtain better service and turnarounds than our ABRs |
| wanting to survive in this changing economic climate! | | | | or their clients may be able to alone. In this way, |
| How does one go about submitting finance | | | | your clients benefit from our aggregated input to |
| applications through Commercial Finance Lenders as | | | | banks / institutions and clients' applications are taken |
| an Authorised Business Referrer ( "ABR" )? | | | | seriously. |
| Simply follow the three steps below, and Commercial | | | | In addition, in this market we find that Banks and |
| Finance Lenders would be delighted to assist with | | | | Financiers are not prepared to accept referred |
| your clients' applications: | | | | applications, unless a broker has a very significant |
| 1. Apply with us to Register as an "Authorised | | | | deal flow, and they have pulled / cancelled referral |
| Business Referrer", and you will receive contact from | | | | contracts with all but the largest volume referrers. |
| our office within one business day; | | | | What fees or commission can I earn as an |
| 2. We may require some basic information ( profile / | | | | Authorised Business Referrer? |
| brief CV + registration / MFAA information ),and | | | | The ABR business model is very simple - 50% of the |
| upon receipt / approval will activate your ABR | | | | commission or fee actually received by Commercial |
| registration. Registration is free and instant (upon | | | | Finance Lenders in respect of a successful transaction |
| activation ); | | | | or application, is shared with the ABR who referred |
| 3. Submit applications on behalf of clients - Simply log | | | | the transaction or application. |
| in ( if you haven't already ) and complete the very | | | | Higher percentages are shared with the ABR in |
| basic one page finance application / information form. | | | | circumstances where monthly finance volumes |
| | | | | exceed certain thresholds; |
| How does the submission of client transactions / | | | | It should be noted however that further terms and |
| applications work in practice? Commercial Finance | | | | conditions may apply and are governed by specific |
| Lenders simply requires an ABR to log in and | | | | contractual agreement to be entered into between |
| complete + submit the basic one page application / | | | | Commercial Finance Lenders and the ABR. |
| information form; We ask the ABR only to forward | | | | Does my client pay more if the deal / application is |
| us a signed mandate ( generatedautomatically when | | | | referred through the ABR Program? |
| the deal / application is logged ), and any | | | | No - Commercial Finance Lenders shares its income |
| documentation they may already have in respect of | | | | with the ABR, and the client does not pay any more |
| the client / deal. | | | | by virtue of being introduced by an ABR; |
| Thereafter, we are happy to liaise with the client ( i.e. | | | | What does it cost my client to have Commercial |
| the person requiring finance ), provide advice,collect | | | | Finance Lenders assist with a finance application? |
| all required documentation for submission to | | | | We work purely on risk - i.e. there is no fee or |
| appropriate financiers / capital providers, and manage | | | | commission earned by Commercial Finance Lenders |
| the sign-up / closing of the transaction. We are able | | | | (or therefore by an ABR ) unless an application is |
| to advise clients at the outset ( i.e. upon initial receipt | | | | successful in receiving an offer. |
| of the application and supporting documentation ) as | | | | In respect of a number of the more complex finance |
| to the prospects of success of their application. | | | | applications ( such as Commercial Property Finance ), |
| In cases for example where we are aware of | | | | we may charge a service / funding fee in the order |
| circumstances ( from experience ) that mean a | | | | of 1.5% to 2.5% ( excluding GST ) of the principal |
| client's application is highly unlikely to be successful, | | | | value originated. This would however be |
| we are able to save the client the time and trouble | | | | communicated prior to submission to financiers ( after |
| of submission and follow up. We are often also able | | | | initial evaluation by us of the application ), and it |
| to suggest alternative structures of products which | | | | would naturally be up to the client to accept or |
| may in the circumstances accomplish the same result | | | | reject our proposed fee - in any event, this fee |
| for the client. | | | | would be the same as would be charged on personal |
| All communications with the client are typically copied | | | | application by the client. |
| to the ABR, and the ABR is sent regular weekly | | | | It should be noted that any fee raised by Commercial |
| updates on the progress of all transactions / | | | | Finance Lenders on this basis is completely separate |
| submissions; Should the ABR prefer us not to deal | | | | from fees levied by the financiers, who may well |
| with the client ( i.e. for all communication to flow | | | | charge their own raising or documentation fee. |
| solely through the ABR ), this can be accommodated, | | | | DON'T DELAY -TOLLFREE CALL TODAY! |