LENDING Guide
How FRONT Financial lends, who we lend to, and what to expect from the process.
Lending Guide For Business & Commercial Finance
Front Financial is a trading name of FF Loan Manager Pty Ltd ABN 85 702 441 414, ACN 702 441 414
1. ABOUT THIS GUIDE
This Lending Guide provides general information about FRONT Financial and the business and commercial finance we provide. FRONT Financial provides credit only where the proposed loan is outside theapplication of the National Credit Code and the consumer credit regimeunder the National Consumer Credit Protection Act 2009 (Cth).
This document is intended to:
· explain the nature and scope of FRONT Financial’s lending activities;
· identify the types of credit FRONT Financial does and does not provide; and
· promote transparency and good commercial lending practices.
This document is not a Credit Guide or other statutory disclosure document under the National Consumer Credit Protection Act 2009 (Cth). Whether the National Credit Code applies to a particular loan depends on thecircumstances of that transaction, including the borrower and the actualpurpose for which the credit is provided. The specific terms of any loan will be contained in the relevant Letter of Offer, loan agreement and security documents.
2. ABOUT FRONT FINANCIAL
Front Financial is a direct private lender providing business and commercial finance. We assessand provide loans using our own resources and funding provided by wholesale financiers.
Front Financial:
· acts as the lender and not as a mortgage broker or credit intermediary;
· does not arrange loans through a panel of third-party lenders;
· is not a credit representative of another lender or credit licensee;
· does not provide consumer credit; and
· does not accept deposits and is not an authorised deposit-taking institution.
3. WHO WE LEND TO
Front Financial may lend to different types of borrowers, however, all loans must be for a purpose that is outside the National Credit Code.
The legal form of the borrower does not, by itself, determine whether a loan is a business or commercial loan. Front Financial considers the actual purpose for which the credit will be used.
4. LOANS WE DO AND DO NOT PROVIDE
Front Financial provides finance for genuine business and commercial purposes. All applications are subject to Front Financial’s lending criteria and approval. Front Financial does not provide consumer credit and will not knowingly provide credit to which the National Credit Code applies.
This includes credit provided to a natural person or strata corporation where the credit is provided or intended to be provided wholly or predominantly:
· for personal, domestic or household purposes;
· to purchase, renovate or improve residential property for investment purposes; or
· tor efinance credit provided for those purposes, where the National Credit Code applies.
If the proposed use of funds indicates that a loan may be regulated consumer credit, Front Financial may decline the application or require further information before proceeding.
5. BUSINESS PURPOSE DECLARATION
Where appropriate, Front Financial may require a borrower to complete a separate Business Purpose Declaration.
The declaration should only be signed where the credit is genuinely to be applied wholly or predominantly for:
· business purposes; or
· investment purposes other than investment in residential property.
A Business Purpose Declaration does not make a consumer loan a business loan merely because it has been signed. The actual purpose of the credit remains relevant in determining whether the National Credit Code applies. The Business Purpose Declaration is a separate document and does not form part of this Lending Guide.
6. ASSESSMENT AND APPROVAL
Front Financial assesses each application against its lending criteria and, where relevant, the requirements of its wholesale funding arrangements.
We may consider matters including:
· the purpose of the loan;
· the borrower’s financial position;
· capacity to meet the loan obligations;
· the proposed source of repayment or exit strategy;
· the nature and value of proposed security;
· credit history; and
· information concerning any guarantor.
Submitting an application, receiving indicative terms or discussing a proposed loan with Front Financial does not constitute an approval or commitment to lend.
7. INTEREST, FEES AND COSTS
The interest rate, fees, charges and other costs applying to a loan will be disclosed in the relevant Letter of Offer and loan documents.
Depending on the transaction, these may include:
· interest and default interest;
· establishment or facility fees;
· valuation and consultant costs;
· legal costs;
· registration and search fees; and
· other costs associated with establishing, maintaining or enforcing the loan.
Borrowers should carefully review the Letter of Offer and loan documents before accepting an offer of finance.
8. SECURITY AND GUARANTEES
Front Financial may require security for a loan, including:
· mortgages over real property;
· security interests over business or other assets;
· personal or corporate guarantees; and
· other security appropriate to the transaction.
Where a guarantee or security is required from a third party, Front Financial recommends that the guarantor or security provider obtain independent legal advice from a solicitor of their own choosing before signing. Front Financial may require evidence that independent legal advice has been obtained.
9. INDEPENDENT ADVICE
Front Financial acts as lender and does not act as adviser to the borrower or any guarantor. Front Financial does not provide legal, tax, financial product, investment,superannuation or insurance advice. Borrowers and guarantors should obtain their own independent legal, financial, accounting and tax advice where appropriate before entering into a loan transaction.
10. IDENTITY VERIFICATION AND REGULATORY REQUIRMENTS
Front Financial is required to comply with applicable anti-money laundering andcounter-terrorism financing laws.
As part of the application and lending process, we may require information and documents to:
· identify and verify borrowers, guarantors and relevant individuals;
· identify persons who own or control a borrower;
· understand the purpose of the proposed transaction;
· verify information concerning the source of funds where required; and
· undertake other checks required by law.
Front Financial may be unable to proceed with a loan if it cannot satisfactorily complete the checks required by law.
11. PRIVACY AND CREDIT REPORTING
Front Financial collects and handles personal and credit information in accordance with applicable privacy laws.
Our Privacy Policy, Credit Reporting Policy (where applicable) and Privacy Collection Notice is contained are available at [insert website/link].
12. COMPLAINTS AND AFCA
If you have a complaint about Front Financial or your loan, please contact:
· Complaints Officer: Ryan Sweeney
· Email: ryansweeney@frontfinancial.com.au
· Telephone:0466 634 494
· Address:1 Markert Street, Sydney, NSW, 2000
Front Financial will consider complaints through its internal complaints process.
Front Financial is not a member of the Australian Financial Complaints Authority (AFCA) and loans provided under its business and commercial lending model are not covered by the AFCA external dispute resolution scheme. If a complaint cannot be resolved directly with Front Financial, you may obtain independent legal advice or consider other dispute resolution options availableto you.
13. IMPORTANT NOTICE
This Lending Guide is a voluntary and cautionary information document adopted by Front Financial as part of its compliance and governance framework. It is intended to clearly communicate the scope of Front Financial’s business and commercial lending activities and the types of credit Front Financial does not provide. It is not a Credit Guide or other prescribed disclosure document under the National Consumer Credit Protection Act 2009 (Cth). Front Financial does not provide credit to which the National Credit Code applies. Whether the National Credit Code applies to a particular transaction depends on thecircumstances of that transaction, including the borrower and the actual purpose for which the credit is provided. Describing a loan as a business loan,or obtaining a Business Purpose Declaration, does not by itself determine whether the National Credit Code applies. The terms applying to a particular loan are contained in the relevant Letter of Offer, loan agreement and security documents.