Call Us: 0754433863 Call Now
APPLY NOW
call icon Call Now
call-icon Call Now
call-icon Call Now
Commercial Lending Guidelines

Ume Loans – Who are we?

 

Giving Australians a financial second chance

Ume Loans was founded back in 2009 to help those customers who do not fit a traditional bank style credit criteria.

Here at UME Loans, we understand that unfortunate circumstances can occur to good, honest people and our goal is to help those people get back on track and offer them the financial second chance they deserve.

We take an over-arching common sense approach when it comes to credit assessment and look to utilise an applicant’s strengths to outweigh any potential negatives in their profile or application. We understand that certain circumstances can fall outside of an applicant’s control, and we factor in an applicants displayed character and acknowledgement of any previous financial misdemeanours into our assessment and decision making.

 

Who We Help

 

 

Contacts

 

Tim Henderson

Head of Credit

tim.henderson@umeloans.com.au

Kirra Matthews

Broker Credit Analyst
 
broker@umeloans.com.au

Commercial Lending Guidelines

 

Download PDF
Business Basic Business Improve Business Exceed
Fixed Interest Rate

29.99%

24.99%

22.99%
Min. Lend

$5,000

$10,000

$10,000
Max. Lend Excl. Fees

$30,000

$35,000

$40,000
Commission %
(Excl. Fees & Insurance)		 2% of loan advance 3% of loan advance 4% of loan advance
Brokerage Fee Up to $1,995 (maximum 11% of loan size excluding fees and insurance) Up to $1,995 (maximum 11% of loan size excluding fees and insurance) Up to $1,995 (maximum 11% of loan size excluding fees and insurance)
Term Up to 5 years dependent on loan size Up to 7 years dependent on loan size Up to 7 years dependent on loan size
Early Exit Fees NONE, ZERO, ZILCH NONE, ZERO, ZILCH NONE, ZERO, ZILCH
Risk Fee $1,595 $1,295 $1,095
Other Fees $29 Monthly Fee
$8 PPSR Fee		 $29 Monthly Fee
$8 PPSR Fee		 $29 Monthly Fee
$8 PPSR Fee
Establishment Fee Up to $1,937 (maximum 11% of loan size excluding fees and insurance) Up to $1,937 (maximum 11% of loan size excluding fees and insurance) Up to $1,937 (maximum 11% of loan size excluding fees and insurance)
Secured Commercial Lending Criteria
Minimum Comprehensive Credit Score No minimum 400 550
Length of ABN Minimum 6 months Minimum 12 months Minimum 24 months
Maximum Number of Outstanding Defaults No maximum pending acceptable reasoning 2 1
LVR 180% 180% 180%
Banking Conduct No more than 8 dishonours evident across 90 days, maximum of 4 financial dishonours. No more than 5 dishonours across 90 days and days in negative not to exceed 20 No more than 2 dishonours across 90 days and days in negative not to exceed 15
SACC/MACC Lending No more than 4 providers
over 90 days		 No more than 3 providers
over 90 days		 No more than 2 providers
across 90 days
Pay Advance Lending No more than 3 credits across
2 providers in 90 days		 No more than 3 credits across
2 providers in 90 days		 No pay advance facilities
used within 90 days
Buy Now Pay Later Facilities No restrictions provided the client shows affordability No more than 3 active facilities evident in 90 days No more than 2 active facilities evident in 90 days

 

*Tier upgrades possible where acceptable reasoning, understanding and evidence of good character has been provided to mitigate criteria – overarching common sense approach to be able to override policy.

 

Effective
October 2024		 Tier Upgrade Opportunities (Customer must have one of the following with a maximum of one tier upgrade available)
Homeowner or Mortgaged. (Rates notice required)
3 Years plus renting at the same residence. (Copy of lease agreement required)
3 Years ABN and 3 Years GST Registered.
20% Deposit with evidence showing in current bank statements of genuine savings.
Product Summary
Customer Profile Business loans for credit impaired people who need a second chance.
Security Secured loans only.
Loan amounts Funding assets from $5,000.00 to $40,000.00.
Maximum loan amount to be $40,000 plus fees & Insurance allowance of up to $5,000. No substitution of Insurance allowance is allowed for an additional loan amount.
Loan Purpose Any worthwhile business purpose. Proof of funds use will be requested for non-asset purchases/refinances.
Loan Terms Structure of loan term to meet the customers preferred repayment within the maximum allowable terms. (Minimum term 1 year)
Loan Size Loan Term
$5,000 – $10,000 Max term of 3 Years
$10,001 – $15,000 Max term of 4 Years
$15,001 – $25,000 Max term of 5 Years
$25,001 – $30,000 Max term of 6 Years
$30,001 – $40,000 Max term of 7 Years
Repayment frequency Weekly or fortnightly as per customer’s income frequency.
Repayment option Direct debit in line with applicant’s income cycle.
Balloon Repayments No balloon repayment options
Interest Fixed interest rate from 22.99% to 29.99%. (please see tiering for criteria).
Maximum interest rate a client will qualify for is 29.99% p/annum.
Submission Requirements
  • • Complete Application (Customer details, 3 years employment and residential history, expenses, assets and liabilities).
  • • Valid ID (License and Medicare).
  • • Signed Privacy.
  • • Proof of Income Documents.
  • • Credit File.
  • • Bank Statements completed via our secure link.
Tier Upgrade Criteria (Max one per applicant, customer must have one of the following)
  • • Home Ownership (must be in applicants name, not spouse unless a joint loan).
  • • 3 Years+ in renting in current residence. (Proof via a Lease Agreement required).
  • • 3 Years+ ABN & 3 Years GST Registered.
  • • 20% Deposit (Genuine Savings must be evident in banking).
General
Visa Visa applicants are considered when the applicant holds a valid work visa, greater than 2 years remaining on the visa and LVR does not exceed 80% (i.e. genuine deposit required).
First Time Borrowers All applications considered.
Guarantors accepted.
Applicants under 21 years of age may qualify for a max lend of $15,000 + insurance and fees.
Learners Licence Max lend of $15,000 + fees & insurance.
Fully Licenced supervisor verification required.
International Licence Holders Will accept international licences provided it is valid and for the same class of vehicle they are purchasing.
Identity Selfie Drivers Licence (provided at application stage) and Medicare card to be provided.
Guarantors A guarantor is a good option for someone who has serviceability for a loan but might not normally be approved due to reasons other than serviceability. A suitable guarantor is a family member who has sufficient income to cover the new debt as if it were their own and a proven good credit rating. For a guarantor application we will need exactly the same information as the primary applicant, (i.e. full application, payslip, ID, Equifax and bank statements).
Possible Exclusions Lack of affordability/serviceability.
Evidence of excessive gambling.
Evidence of illegal activities/income.
Non-disclosure of relevant information/debts.
Absence of customer benefit.
Excessive Comprehensive Insurance Premiums where it is unlikely the applicant can afford to re-insure after 1st year.
Evidence of inability to manage their finances, ie dishonours/days overdrawn etc as per our bank statement guidelines.
Applicants without a fixed address or who reside in a caravan park.
Applicants seeking funds for arrears or day to day living expenses.
Applicants seeking funds to send overseas.
Applicants seeking funds to pay back family member debt.
Applicants currently in financial hardship.
Applicants using a debt negotiator or third-party budgeting provider.
Vehicles
Private Sales Yes, private sale conditions apply.

  • • 6 Photos of the car showing the front including registration plate, both sides, back, odometer, and VIN.
  • • Proof of current registration. Must have all identifiers on it. VIN, engine, and registration number. Name on registration must match driver’s licence.
  • • Vendor proof of account.
  • • Vendor licence.
  • • Safety certificate/RWC relevant to your state.
  • • Signed private sale invoice.
Age of Vehicles All vehicles are considered regardless of age.
Vehicles under 25 years old are to be valued using AutoEdge.
If a vehicle is over 25 years of age, please refer to Ume Loans for security value assessment.
Loan to Value Ratio (All LVR Calculations exclude fees and insurance) LVR is calculated off the AutoEdge Trade Value.
Asset Purchases – Maximum 180%.
Balloon Refinance – Maximum 80%.
Sale & Leaseback/Cashflow – Maximum of 100%.
Minus Equity YES – provided it meets normal loan to value guidelines.
Repairable Write Off Yes, but must be disclosed to the customer and Ume will use the lowest trade value in Autoedge to establish the asset value.
Income
Proof of Primary Income(s) 90 Day electronic bank statements mandatory for every application.
Please note applicants will be sent our secure link on submission which is required for assessment.
Minimum Age of ABN Will consider all business applications on a case by case basis.
Self Employed Self Employed Income – 2 options:
For self employed people wanting a BUSINESS use loan we have 2 options:

  • o Option 1: Income less expenses which are all evident in the last 3 months bank statements. Should this loan result in increased income a cash flow projection can be utilised to support this likely increase in income.
  • o Option 2: Lite Doc Income verification – Assuming all other eligibility criteria are met for the Lite doc product then the maximum loan amount will be 3 X the monthly income as per the bank statements.
Unacceptable Income Types For Commercial Loans Centrelink, rental income, child support or any other non-business related income will be excluded from affordability.
Bank Statements
Banking Conduct 90 Day electronic Bank Statements mandatory for every application.
Dishonours in the past 90 days No more than 4 finance related dishonours in a 90 day period.
Bank Account Overdrawn No impact if customer has overdraft/credit card facility, if no overdraft/credit card facility then no more than 20 days overdrawn in a 90-day period.
High Risk Transactions Evidence of excessive gambling, ATM withdrawals, crypto or overseas transfers will be a knockout. No more than 30% of income to be classed as high risk.
Account Clearing Will consider if number of days overdrawn is less than 12.
Pay Advance Loans An applicant must have no more than 2 facilities evident across 90 days with no more than a combined total of 3 drawdowns.
Buy Now Pay Later Monthly average spending over the last 90 days utilised in affordability calculations. When consolidating a BNPL facility, 4% of the limit will still be factored into the affordability assessment.
The facility must be closed for a minimum of 30 days to be excluded from calculations.
Residence
Residential Confirmation No minimum time in residence required.
No caravan park occupants.
An applicant will be required to supply 3 forms of residential confirmation to validate their residential address. These documents include

  • • Australian Driver’s Licence.
  • • Bank Statement (no older than 30 days).
  • • Lease Agreement.
  • • Tax Notice of Assessment.
  • • Mortgage Document.
  • • Most Recent Rates Notice.
  • • Utility Bill (within 90 days).
  • • Rental Ledger.
  • • Centrelink Income Statement.
  • • Credit File.
Equifax
Equifax Requirement Equifax no older than 30 days for every application
Equifax Score No set minimum
Age of Equifax No minimum age of file
Financial Hardship Indicators Current loan commitments must not be in arrears with evidence provided by way of full loan statement showing overall loan conduct.
Applicants who have a hardship indicator evident must be three months clear of hardship at time of application.
Pay Day Activity No more than 4 payday providers in the last 90 days.
Pay Day Loans No more than 2 current pay day loans at the time of settlement and all must have good payment history.
Defaults No Default is a knockout, however adequate reason(s) provided for all credit infringements and please note that Ume prefer defaults to be paid, under an ongoing arrangement or officially disputed with Equifax.
Current Part 9 Debt Agreement Customer must be at least halfway through payment plan with no more than 1 dishonour. Maximum loan will be $12,000 plus fees & insurance.
Discharged Bankrupt One day after discharge, providing there are no further defaults since bankruptcy. With full and adequate explanation.
A default listed after bankruptcy is a knockout. Maximum lend will be $10,000 plus fees & insurance.
Prior External Administration Case by case.
Serviceability
General Business Expenses – We will use the higher of

 

check Assessed (Bank Statements & Declared) or
check Applicable HEM
Borrowers must have a net surplus (disposable income of $200.00 per month) after all expenses have been combined.
Business Cost Allowances Brokers are required to supply an accurate list of the customer’s living expenses, as advised by the client. Groceries, communication, utilities, education and childcare, department stores & retail, medical, transport, entertainment, insurance, rent, dining out, streaming subscriptions, online retail, council rates and fees.
Where a borrower is not paying any rent/board, Ume Loans will allocate $433 a month in their expenses.
Cash Flow Projection Where an applicant is purchasing an income producing asset for their business and it is reasonable to assume their income will increase postsettlement, a signed cash flow projection can be used to aid affordability.
Replacement Commitment For business use loans the client is deemed to have serviceability for a new loan at the same or lower repayment as a prior (paid out within 3 months) or current (about to be finalised) loan as long as the client provides the last 12 months loan statement showing good repayment history. This does not negate the client having to supply 90 days of electronic bank statements.
Fees
Fee Schedule Amounts
Standard Establishment Fee $1,937 (can be reduced based on loan size so Ume never charge more than 11% of the customer loan amount. ACR permitting.)
Broker/Introduction Fee
(inclusive of GST) 		Maximum 11% of purchase price (includes GST) up to a maximum of $1,995.00 ACR permitting.
Security Registration Fee PPSR Charged at Cost – disclosed on contract.
Direct Debit Dishonour Fee $45
Arrears Notice Fee $45
Reschedule Payment Fee $20
Early Payout Fee $Nil
Risk Fee Up to $1,595 dependant on tier.
Monthly Account Keeping Fee $25
Commission Clawback Commission paid up to 4% of loan amount excluding fees & insurance. Commission amount is dependant on applicant’s tier.
Commission Clawback (continued) 100% of the commission amount paid to the broker will be clawed back if during the first 12 months of the loan term the contract is subject to a repossession of the security or considered a total loss due to customer’s failure to pay.
Settlement Documents
Broker Tax Invoice Copy of broker tax invoice & commission invoice to be supplied for payment (separate invoices required).
Comprehensive Insurance (funded) Copy of the comprehensive insurance policy for payment (if funded in loan) with Ume Loans noted as the financier.
Comprehensive Insurance (not funded in loan) Copy of PAID 12-month policy (if not funded in loan) with Ume Loans noted as the financier.
Warranty (funded) Copy of warranty policy for payment.
Insurance Policies
Ume Loans is happy to fund the following insurance premiums in the loan.
 Insurance & Warranty allowance will be provided in every approval issued up to $5,000 dependant on loan size.
Loan repayment may change dependant on loan benefits chosen.
12 Month Comprehensive Insurance (Noting Ume Loans Pty Ltd as having financial interest in the vehicle) If the premium is not funded in the loan, a fully paid policy is required for settlement. (Pay by the month is only accepted on vehicles with a retail value less than $6000 or where the customer has demonstrated a good Pay By the Month payment history.)
Warranty Policy required for loan docs.
Personal Reference Requirement Names and mobile numbers for 2 contactable personal references, 1 to be a relative.
Authorised Contact Every customer is to advise the name, mobile number and email address for one authorised contact who can communicate with Ume Loans in the event the customer cannot. This could include a parent, partner or sibling for example as long as they are not party to the loan.

 
We pride ourselves in applying a common sense approach to responsible lending, so if there is a Ume Loans lending guideline that doesn’t work for your customer please thoroughly explain your clients circumstances so we may consider an override to our normal policy. We of course reserve the right to approve or decline any application for finance and/or settlement at our discretion. Updated March 2025

Everyday Is A Second Chance

(Must be working Full-Time, Part-Time, Casual or Self-Employed)

Terms & Conditions and Privacy Policy:*

I Agree

By selecting the checkbox above I acknowledge & accept the Ume Loans Terms & Conditions, Complaints Policy, Privacy Policy, (see links below) and i agree that my credit file may be accessed as part of my loan assessment. Further, I am authorised to provide the personal details presented and consent to my Identification information being passed to and checked with the document issuer, official record holder, a credit bureau and authorised third parties for the purpose of verifying my identity and address. Finally, by checking this box I confirm that Ume Loans have my consent to contact me to discuss the possibility of a loan and insurances that maybe appropriate to my individual circumstances and if I request so, Ume Loans may provide me with quotes.

APPLY NOW