Commercial
Broker
Industry Purpose
Interest Loan Term Loan Amount Security
Type Min Max Min Max Lending Margins
Self Managed Super Fund (SMSF)
Self Managed Super Fund
Properties acquired by a Self Managed
Super Fund
Principal and Interest
1 year 30 years (Residential) 25 years (Commercial - non-specialised) $200,000^ $5,000,000 Up to 70% (Resi - Corp Trustee)
Up to 72% (Resi - Individual Trustee)
Up to 65% (Comm - Corp Trustee) Up to 58.5% (Comm - Individual Trustee)
Interest Only 5 years
• The Borrower is the SMSF trustee (either a non-trading company or at least 2 individuals)
• For individual trustee SMSFs, there must be two trustees - with one of them being the member. If the fund member is an employee of the other trustee, the fund member and the other trustee must be relatives.
• The Security Custodian must be a company who holds the property in trust for the Trustees of the SMSF until the loan is repaid in full • Security Custodian must be a corporate entity
^ Please refer to your Commercial BDM for SMSF under $200,000
Servicing
• Net rental after expenses or 80% of rental if no expense information is available • PAYG Contributions 9.50%
• Additional Contributions to Super from PAYG Salary
• Level of liquid assets (e.g. shares, cash deposits, government bonds) to be held in SMSF after settlement of property purchase: 10%* of total SMSF assets
* If the SMSF cannot meet this asset test, then assets held in a related APRA superannuation fund can be considered, as well as the ability of the members to meet their ongoing superannuation contributions”
Cashflow Solutions
Invoice Discounting (ID) and Invoice Discounting Plus
(ID Plus)
ID and ID Plus are provided to assist with working capital finance requirements
by accelerating the cash conversion cycle and linking availability
of cash to the business cycles. It is particularly useful where businesses operating within appropriate industries are experiencing strong growth or have seasonal requirements
Interest Only revolving facility
Minimum term is determined by the Cashflow Finance Specialist Team No maximum term
$200,000 for ID and $1,000,000
for ID Plus No maximum
ID Up to 85% of approved trade receivables ID Plus An agreed % of stock in trade after adjusting for priority creditors and other
reserves
Trade Finance
Trade Finance is a specific form of working capital made available for companies involved in international and domestic trade. It is offerred in most major
currencies and can be used for legitimate
pre/post shipment export or import funding.It is utilised in conjunction with globally recognised trading instruments including Letters of Credit and other
acceptable trade payment methods
Principal and Interest
The funding of trade loan individual
transactions is generally for 14 days
minimum
The funding of trade loan individual
transactions is to a maximum of 180 days Overall facility $250,000 Nil Security is subject to variation and is dependent on the specific trade funding
requirement. A variable risk margin is also applied over cost
of funds rates Based on short term
cost of funds interest rate for AUD or major foreign currencies
Overall Trade Finance Facility is generally
for 12 months revolving - however it can be for a lesser term in instances of one off or customised
trade contracts
Due to the specialised nature of these types of funding requirements there is no set criteria, each application for trade finance must therefore be referred to the local trade finance specialist
give a guide only, and that all applications are looked at on an individual basis – so feel free to contact one of our Commercial Business
Development Managers to find out what we can do for you.
Independent Supermarkets
Independent Supermarkets
This policy is limited to IGA and Foodworks
groups. Finance is available to cover refurbishment of existing store and/or purchase of existing
store
Principal and Interest 1 year
EXISTING SUPERMARKET 15 years (freehold) 10 years (leasehold) or remaining term if < 10 years $100,000 Nil Up to 50% of purchase price (single site operators)
Up to 50% of purchase price (multi site operators) + up to 80% EBITD of already owned store REFURBISHMENT 5 years (freehold) 5 years (leasehold) or remaining term if < 5 years
• A minimum of 5 years specific supermarket experience. This can be mitigated by retaining or hiring employees who have appropriate supermarket experience
• The last 3 years financials are to show a profitable performance with no deterioration in business net assets
Requisite Performance Indicators to be meet:
• Interest Cover ( EBIT/Total Interest ) > 3.0x • Profitability (Gross Profit/Sales) > 20% • Profitability (EBIT/Sales) > 3%
• Gearing (Total liabilities/total tangible assets) < 75 % • Debt service cover (EBITD/Total interest + Principal payments)
> 1.2x
Industry Purpose
Interest Loan Term Loan Amount Security
Type Min Max Min Max Lending Margins
Professionals Accounting Firms/ Partners Purchase of accounting practice, establishment of new practice, working capital, items of a capital expense nature.
Principal and Interest
1 year
10 years (fully amortised)
$500,000 Nil
Up to 60% of actual gross fee income or Projected income (Practice without FP Arm) + Up to 2.5x Financial planning renewal income (EBIT) multiple (Practice with FP Arm) Interest Only 3 years (with the 10 years
fully amortised)
• 3 years professional experience
• Net worth to be consistent with partner’s experience and age • Charge over Business Assets (GSA)
• Assignment of key man insurance
Partnership/ Firm
• Charge of debts, operating as a floating charge and including a Deed of Accession.
Company
• Fixed & Floating Charge • Directors’ Guarantees
Requisite Performance Indicators to be met:
• Interest Cover > 1.75x
• Net Profit margin before partners salaries > 25% • WIP Days Outstanding < 70 days
• Debtor Days Outstanding < 70 days • Total Cash Lock up (WIP + Debtors) < 125 days • Cash Available for debt servicing 1.2 : 1
• Client concentration - no client to generate > 10% of revenue • Average fees per partner > $500,000
• Profit per partner $140,000
Consulting Engineers and Quantity
Surveyors
Firms seeking finance against cashflow for supplying consulting engineering services in the areas of design and management of infrastructure projects, environmental projects, industrial processes and equipment
Principal and Interest (Working Capital)
1 year
5 years
$500,000
2.5 x adjusted EBITA
less partners draw Working Capital Request GSA Assignment of Keyman insurance Residential Property Purchase up to 90 % without LMI (Under $2.285m) Up to 70% (> $2.282m) Principal and Interest
(Residential Property
Purchase) 30 years
Up to $2,056,500 (90%)
• 3 years professional experience
• Certificate of currency showing the level of current professional and indemnity insurance held by the firm/principals/partners (to the satisfaction of the Bank (i.e. - AA and above) • Net worth of $500,000 per partner / principal
(assets held jointly with spouse) • Turnover >$2m per year
Requisite Performance Indicators to be met:
• Interest Cover > 2.5
• Operating Profit before tax (% of revenue)= Range between 10% - 20%
• Gearing (Total Liabilities/Total Assets) > 50% • Wages (% total expenses) < 40%
• Maximum reliance on a single debtor (% of total revenue) < 30%
Financial Planning
To purchase an existing portfolio (can include buying
out an outgoing director), working capital up to $50,000,
refit of premises or refinancing of existing
Principal and Interest
1 year 10 years $100,000 Nil DEALER MEMBERS New = 2.25 x renewable income or 70 % purchase price or 3.75 x EBIT Existing = 2.25 x renewable income or 3.75 x EBIT INDEPENDENT ADVISORS New = 1.75x renewable income or 50% of the purchase price or 2.6 x EBIT Existing = 1.75x renewable income or 2.6x EBIT Interest Only 1 year (at least 50% of the debt must be repayable in 5 years)
• Are authorised representatives / members of an accredited dealer group or
• Independent advisors (where renewal income and FSR compliance can be verified)
• Have a minimum annual revenue of $750,000
• Where the Bank holds (or will hold) the main operating account • Minimum of 5 years industry experience with a minimum of 3 years
experience running a successful financial service business
• Ability to demonstrate the consistent application of business processes and service (e.g. process documentation supporting consistent delivery of service)
• strong and stable personal financial position • FSR compliant
Requisite Performance Indicators to be met:
• Interest Cover > 2.0x
• Profitability [EBIT / Gross income] > 20%
• Profitability [renewable income / Gross income] > 50% • Gearing (Total liabilities / total assets) < 70 %
Insurance Brokers Insurance brokers /underwriters (including companies, partnerships or sole traders)
Principal and Interest
1 year 10 years $100,000 Nil Up to 60% of the valuation as determined by the St.George Multiplier Interest Only (within overall 10 year Up to 3 years
term) • Minimum of 5 years industry experience
• Minimum of 3 years experience running a successful insurance broking/ underwriting business
• Strong and stable personal financial position • Evidence of current AFS licence For Insurance Underwriters: • Copy of all current binder agreements • Minimum total Gross Written Premium (GWP) $1m • Break-up of GWP placed with various Insurance Companies • Minimum number of product lines: 3
• No one supplier is to exceed 30% of the Underwriting Agency’s GWP
Requisite Performance Indicators to be met:
• Min annual revenue of $600,000
• Interest Cover > 2.0 x OR > 1.5x (where secured by real estate) • EBIT / Gross income > 20% of revenue
• Client concentration - no client to generate > 20% of revenue
Legal Practitioners/ Partners Purchase of proactive, establishment of new practice, working capital, items of a capital expense nature and
superannuation contributions.
Principal and Interest
1 year
10 years
$500,000 Nil
Up to 60 % of actual gross fee income (assessed on a 12 month rolling basis) or projected income in case of a material
change Interest Only (within overall 10 year Up to 3 years
term)
• Principal / partners are to hold a professional practicing certificate from the applicable State Law Society / Law Institute or Bar Association
• 3 years professional experience
• The Bank is, or will become the principal account manager for the customer
• Net Worth to be consistent with partner’s experience and age
Requisite Performance Indicators to be met:
• Interest Cover > 1.75x OR > 1.5x (where secured by real estate) • Net Profit margin before partners salaries > 25%
• WIP Days Outstanding < 120 days • Debtor Days Outstanding < 90 days • Total Cash Lock up (WIP + Debtors) < 180 days
Cash Available for debt servicing 1.2 : 1
• Client concentration - no client to generate > 10% of revenue • Average fees per partner > $500,000
• Profit per partner $140,000
Management Rights (QLD Only) Acquisition of Management rights businesses in well located properties. Includes purchase of the business and the Manager’s unit (as a freehold). BUSINESS ASSET EXPOSURE Principal and Interest 1 year Remaining agreement term up to 15 years $200,000 Nil Up to 70% of Purchase Price (inclusive of manager’s residence) BUSINESS ASSET EXPOSURE Interest Only
5 years (so long as loan term can be repaid within max term remaining) MANAGERS UNIT EXPOSURE Principal and Interest 1 year 25 years MANAGERS UNIT EXPOSURE
Interest Only 5 years
• Proven Industry experience (min. 3 years) • At least 40 units under management
• Ability to demonstrate strong marketing and customer service skills
• Favourable reference from previous Body Corporate • Evidence that restricted letting agents licence is held • Adequate insurance to cover (Public Liability,
Professional Indemnity, Loss of income, Office Contents, Home contents, Fidelity)
Requisite Performance Indicators to be met: • Interest Cover (EBIT/Interest) > 175x
• Debt Service Cover (EBITDA/[Gross Interest Expense + Gross Principal Repayment]) > 1.0x
Health & Community Services
Child Care
Purchase of existing Child Care Centre, purchase of additional Child Care Centre, converting commercial or residential
premises in Child Care Centre or Child Care Centre being built by applicant (Greenfield),
Superannuation contributions
Principal and Interest
1 year PURPOSE BUILT OR LEASEHOLD 10 years RESIDENTIAL CONVERTED 15 years $100,000 Nil FREEHOLD up to 70% (purpose built) up to 80% (residential cover) or up to 70% Greenfield LEASEHOLD up to 35% provincial area or up to 50% metropolitan Interest Only (Once loan is < 50% going Up to 3 years
concern)
Be an approved Long Day Child Care Centre, receiving the Commonwealth Government’s Child Care Benefit (‘CGCCB’)
which requires an applicant to:
• Operate for at least 8 hours per day for a minimum of 48 hours per week
• Hold valid accreditation / licence(s) from the relevant State / Territory government/ regulatory authority
• Hold valid Local Council Development Application and Building Application approval • Hold valid State Department of Community Services licence
• Preferably be a member of the applicable State based Child Care Association
• Have at least 3 years experience in the Child Care industry or similar industry
• Multi-site owner/operator, in addition to the criteria below, should also have demonstrated their ability to operate / manage multiple sites (business management experience / qualifications)
Requisite Performance Indicators to be met: • Child Care places > 25
• Occupancy levels > 80% • Interest Cover > 2.0 x
• Wages and Salaries (+ on costs) / Total income < 60% • Income per fulltime Child Care place > $8,880 p.a. • NPBT (before owners drawings) per fulltime Child Care place >
Industry Purpose
Interest Loan Term Loan Amount Security
Type Min Max Min Max Lending Margins
Medical Lending Registered medical/ dental/veterinary practitioners, medical clinics or group practices including specialists, in private practice, partnerships or companies, seeking finance against cashflow. PRACTICE PREMISES Principal and Interest
1 year COMMERCIAL 15 years CONVERTED RESIDENTIAL 25 years $250,000 $2m and Under Up to 95% of MV Between $2m
and $2.4m (excludes Greenfield)Up to $1.9m More than $2.4m
(max $15m) (excludes Greenfield)Up to 80% MV
PRACTICE PREMISES Interest Only $2m and Under Up to 90% MV Between $2m and $2.4m Up to $1.8m More than $2.4m (max $15m) Up to $75% of MV PRACTICE ONLY Principal and Interest
1 year 10 years $250,000 $1m and under Up to 100% of MV Between $1m and $1.4m Up to $1.0m More than $1.4m (max $15m) Up to 70% of MV PRACTICE ONLY Interest Only $1m and under Up to 70% MV Between $1m and $1.4m More than $1.4m (max $15m) • All Practitioners are to be registered with the relevant professional
regulatory body
• Medical and Dental practitioners must be able to provide evidence of a Medicare provider number
• A minimum professional experience of 3 years • A clear credit history and satisfactory credit assessment • Certificate of currency showing the level of current professional and
indemnity insurance held (to the satisfaction of the Bank) • Income protection and term life cover where reliance on business
assets exceeds $100,000
• Practice Premises = Owner Occupied medical/dental/veterinary premises being either built or converted (Resi/Comm)
• Practice Only = Owner Operated medical/dental/veterinary practice being purchase/established by applicant
Requisite Performance Indicators to be met:
• Interest Cover (EBIT/Total Interest) > 1.5x (secured by property) or 2.0x (all Other)
• Debt Service Cover ([EBITDA] / [Gross Interest Expense + Gross Principal Repayment]) > 1.0x Residential Villages/Residential Aged Care Purchase and construction of new freehold sites, purchase of existing mature Retirement Villages, freehold/ leasehold improvements or repurchase of a unit.
Principal and Interest
1 year 5 years (Min 50% Amortisation required) $500,000 Nil Up to 65% against net Freehold ‘going
concern’ FOR CONSTRUCTION Up to 75% of cost (including land value
and AIPS) or up to 65% of
pre-trading (day one) going concern + 70% of the “net amount” of uncollected acc bond Interest Only (subject to review)3 years
• 60 + Beds: up to 65% of going concern valuation by a bank instructed valuer. Facilities >60 beds may be considered where part of a group.
• Non-Construction: Fixed & Floating Charge (over all assets including rights and licences), Directors’ Guarantees
• Construction: Fixed & Floating Charge (over all assets). Tripartite Agreement between the Bank, client & builder, Directors’ Guarantees • Specialist panel valuer to provide a ‘going concern’ valuation, addressed to the Bank for the purposes of mortgage, and is to be found
satisfactory to the Bank
• Evidence that the Aged Care facility is an Approved Provider, Accredited and Certified and holds all other relevant licences
• Evidence that operator has in place an appropriate Liquidity Management Strategy (LMS) to comply with the User Rights Principals of the Aged Care Act 1997, to cover working capital requirements. Operator must be able to demonstrate access to sufficient funds to meet this requirement
• Evidence that the ACF holds current accreditation and certification certificates issued by the Department of Health and Ageing (DoHA) or other relevant Federal Aged Care Standards and Accreditation Agency (Agency)
• Evidence of all allocated places, extra services places or community care packages issued to the approved provider in respect of the ACF
• Satisfactory evidence of compliance with all statutory and regulatory obligations in relation to the operation of the residential aged care facility
• A current schedule of all accommodation bonds, resident agreements or other agreements or contracts that exists between the Approved Provider and any care recipient
• Copy of external audit certificate evidencing the maintenance of agreed liquidity related to the accommodation bonds (Note: Liquidity arrangements require approval by Commonwealth Department of Health and Aged Care and are to be submitted annually)
Pharmacy Acquiring a pharmacy, refinancing an existing wholesaler guaranteed loan, business expansion including purchase of freehold. Improvements and shop refits.
Principal and Interest
1 year 10 years $250,000 Nil 75% of going Concern (Greenfields - Existing/additional Pharmacy or 70% only for Big Box stores) 60% (Greenfield /
Brownfield site)
Interest Only 1 year
• All borrowings are to be pharmacy related or part of a personal superannuation retirement strategy
• General Security Agreement to be taken over all pharmacy assets including goodwill
• Mortgage over lease premises is preferred
• Right of Entry (St.George Banking Group) over leased premises from mortgagee/landlord
Requisite Performance Indicators to be met:
• Profitability (EBIT / Sales) > 8%, Gross Margin > 25%, (Wages +Rent /Sales) > 25%
• Interest Cover (EBIT /Total Interest) > 2.0x • Efficiency (Stock Turnover) > 6.0x
• Working Capital (Current Assets / Current Liabilities) > 1.10x • Creditor Days < 60days
• Equity (Net Assets / Total Assets) > 30%
Hospitality
Pubs, Bars, Taverns, Motels and Hotels
For acquisition of or improvements to
drinking hotels.
Principal and Interest
1 year 5 years (debt to reduce to 40%) $250,000 Nil Freehold (with gaming): up to 65% Freehold (without gaming): up to 50% Leasehold (with gaming): up to 50% of going concern valuation by a bank instructed Valuer.
Interest Only 3 years
• Minimum 3 years industry experience as a successful publican or 5 years as a successful hotel manager, in an equivalent operation is required
• Demonstrate the ability to service debt
• Proof of a detailed maintenance / refurbishment plan at no more than 3 to 5 year intervals, supported by professional advice in need
• Individual hotel performance will depend upon the mix of various cost centres within the establishment, and will cover (as applicable): Bar, Gaming, Nightclub, Bistro, and Packaged liquor
Requisite Performance Indicators to be met:
• Interest Cover (EBIT/Total Interest) > 2.0x • Debt Service Cover > 1.0x
• EBITDA to be no less then 80% of that used in the last going concern valuation
Registered Clubs
Finance for Licensed Recreational Clubs.
Profitable, well-managed, medium to large clubs with a
strong competitive advantage in their local market.
Principal and Interest
1 year
5 years (Fully Amortised)
$100,000 Nil
Up to 50% (continuing use value)
or up to 65% (alternative use value)
Whichever is lower Interest Only Not Available
• Stable and competent directors preferably with a background in business / finance, and
• Competent secretary-manager / financial controller / general manager with appropriate professional and industry qualifications
Verifications Required
• Quality of the liquor licence, gaming licence and security property • Name of licensee and determine the status of the licence (i.e. special
conditions, complaints, etc.) • Level of fees and currency
• Special entertainment approvals (e.g. by local council)
Requisite Performance Indicators to be met:
• Number of Members > 5,000 • Number of poker machines > 80 • Total Financial debt / EBIT < 4.0x • Poker Machine revenue (i.e. gross less payout) • Per Machine / Year > $40,000
• Proportion of total revenue > 55%
• Gross wages / banked turnover (i.e. net poker machine revenue after payouts + gross bar revenue + members subscriptions received) < 20%
• Bar Gross Profit > 50%
• Gearing (total lending/total assets) < 60%
Industry Purpose
Interest Loan Term Loan Amount Security
Type Min Max Min Max Lending Margins
Property Property Development/ Investment Development and investment finance for commercial property Principal and Interest 1 year DEVELOPMENT 3 years INVESTMENT 5 years DEVELOPMENT $2,000,000 INVESTMENT $100,000 $20,000,000 DEVELOPMENT Up to 75 % LDCR or up to 65 % LVR on completion (whichever is lower) INVESTMENT Up to 70 % current market value Interest Only (property must be revalued at year 3) Development
• Registered first mortgage/s over property being developed
• General Security Agreement (GSA) over all of the developer’s / owner’s rights and undertakings in respect of all security property, including pre-sale deposits where appropriate as well as project documentation
• Directors’/ shareholders’ guarantees
• Other documentation necessary to achieve appropriate control and permit completion of the development in event of customer default (e.g. builder’s side-deed (if construction budget is greater than $5m net of GST)
• Rights to designs, intellectual property, etc. relevant to the development) - it can be necessary to join other parties (e.g. external architects) into documentation to achieve this.
Investment
• Registered first mortgage/s over security property
• General Security Agreement (GSA) over all of the investor’s/ owner’s rights and undertakings in respect of all security property • Directors’/ shareholders’ guarantee.
Rent Rolls
Specifically to assist in the purchase of
Rent Rolls (larger businesses with at least 200 properties under management) Principal and Interest 1 year 10 years $250,000 $5,000,000 Up to 60% purchase price or independent valuation (which ever is lower)
Interest Only 3 years
Less then 50% LVR purchase price or independent valuation (which ever is lower) • Minimum 3 years experience
• Hold a current Real Estate Licence
• Incorporated: Fixed & Floating Charge plus Directors Debt and Interest Guarantees
• Unincorporated: Bill of Sale
Note: Security over the rent roll must not be the primary security. Preferably, freehold security by the principals/directors is also to be held in all instances
Requisite Performance Indicators to be met:
• Net advertising, salaries and rent (% of net revenue or gross profit if client record COGS) < 50%
• Net Profit Margin (NPBT over gross income) > 25%
• Gearing (total business liabilities / Total business assets) < 70% • Interest Cover (EBITA / Total Interest) > 2.5x
Information current as at July 2015. The information included in this document is not designed to be product/policy specific and is a guide only intended for internal staff and accredited broker reference. It is not intended for customer reference. St.George Business Credit Policy applies. For specific policy details please contact your Commercial Relationship Manager. *State variations apply * *State variations and gaming restrictions apply * * *Some exposure restrictions apply St.George Bank – A Division of Westpac Banking Corporation ABN 33 007 457 141. AFSL and Australian credit licence 233714.
Please visit
blazingatrail.com.au/stgeorge
Fund your business growth
• Purchase existing Finance Broker trail books
• Working capital up to $50,000
• Succession planning
• Refit or refurbish your offices
• Refinance existing borrowings
(for purchase of Finance Broker trail books or business)
We’ve created
something special for
our valued brokers -
a first for the industry
where you can now lend
against your trail book.
We’re blazing a trail to help you
grow your business
Information current as at July 2015. The information included in this document is not designed to be product/policy specific and is a guide only intended for internal staff and accredited broker reference. It is not intended for customer reference. St.George Business Credit Policy applies. For specific policy details please contact your Commercial Relationship Manager. *State variations apply **State variations and gaming restrictions apply ***Some exposure restrictions apply. St.George Bank – A Division of Westpac Banking Corporation ABN 33 007 457 141. AFSL and Australian credit licence 233714. 00003 STG 07/15
