Ume Loans was founded back in 2009 to help those customers who do not fit a traditional banking style credit criteria.
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.
At Ume Loans, we take an over-arching common sense approach when it comes to credit assessment and we look to utilise an applicants strengths to outweigh any potential negatives in their profile. We understand certain circumstances can fall outside an applicant’s control which is why we look to assess their displayed character and acknowledgement of any previous financial misdemeanours when making our credit decision.
This is approach is why we have been able to help both new and established business customers with finance solutions for over 15 years.
Broker Credit Analyst
broker@umeloans.com.au
* Please note, this information is subject to change. This information is relevant as at 01/09/2023. Please call us on 07 5443 3863 for any assistance.
| Eligibility Guide | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Asset Type | Motor vehicles. | ||||||||
| Reason For Loan: | Business Use Motor Vehicle. | ||||||||
| Dealer & Private Sales/Sale and Leaseback/Refinance of balloons. | |||||||||
| Any worthwhile business use expense. | |||||||||
| Loan purpose must be for genuine business use. | |||||||||
| Loan Amount | $5,000.00 – $40,000.00. | ||||||||
| Security | Registered motor vehicles only – cars, utes, vans and trucks up to 5 Tonne. | ||||||||
| Loan Term | Purchases, Sale & Leaseback – 1-5 Years | ||||||||
| Balloon Refinance – 1-3 Years | |||||||||
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| Interest Rate | From 22.99% to 29.99% | ||||||||
| Insurance Allowance | An insurance allowance of up to $5,000.00 will be included in the loan approval and can be used to fund any acceptable insurance policies, however there is to be no substitution of Insurance allowance for an additional loan amounts. | ||||||||
| Establishment Fee | Maximum of $1,937.00 (can be reduced based on size of loan so Ume Loans never charge more than 11% of the customer loan amount. ACR permitting). | ||||||||
| Risk Fee | Business Basic ($1,595) | Business Improve ($1,295) | Business Exceed ($1,095) | ||||||
| Brokerage Fee | Up to $1,995 (maximum 11% of loan size excluding fees and insurance) | ||||||||
| Early Payout Fees | NIL. | ||||||||
| LVR | Purchases – Maximum 180% | ||||||||
| Sale and Leaseback – Maximum 100% | |||||||||
| Balloon Refinance – Maximum 80% | |||||||||
| Repairable Write-Offs – Maximum 100% | |||||||||
| Credit Score: | Minimum 300 (Equifax CCR). | ||||||||
| Age Of Credit File: | Minimum 12 months. | ||||||||
| Minimum Age of ABN: | Must have ABN – minimum 6 months – Day 1 ABN considered when industry continuity is evident and accompanied by a 10% deposit. | ||||||||
| Cash Flow Analysis | Ume Loans Fast Cash Flow Formula to show sufficient ability to repay loan repayments. | ||||||||
| 3 X monthly turnover = Maximum loan. i.e. Monthly turnover is $10,000 then the maximum loan will be $30,000. | |||||||||
| Further assessment required for clients that don’t meet our Fast Cash Flow Formula. | |||||||||
| Income Not Acceptable: | No personal income can be used in assessment (Centrelink, Wages, Partner Income). Income must be verified as business income. | ||||||||
| Business Criteria: | Can be Small Business, Trades Person, PTY LTD Company or Sole Trader. | ||||||||
| Business income must be visible in bank statements. | |||||||||
| GST Registration NOT required. | |||||||||
| Some appropriate business digital footprint. | |||||||||
| Industry continuity will be taken into consideration. | |||||||||
| Adverse Bureau: | No Current or Discharged Bankrupts evident on credit file. | ||||||||
| No Finance defaults listed after bankruptcy (paid or unpaid). | |||||||||
| No finance defaults listed within 12 months of application. | |||||||||
| No more than 2 finance defaults listed within 24 months of application. | |||||||||
| Any finance default must be paid or under arrangement with proof of payments for 3 months. | |||||||||
| No limits on paid non finance defaults (telcos, utilities, equipment hire or rental defaults). | |||||||||
| No Hardship Indicators within 3 months of application. | |||||||||
| Bank Statement Repayment History: | No more than 8 total dishonours in a 90 day period, no more than 4 can be finance related. | ||||||||
| * Dishonours on the same day are counted as 1 dishonour. | |||||||||
| No more than 2 dishonours in a row on a credit contract. | |||||||||
| No more than 2 current payday loans and must have NO missed payments. | |||||||||
| Balloon Refinance | Acceptable statement and payout letter to be provided. | ||||||||
| Commission | Commission paid up to 4% of the loan amount excluding fees & insurance. Commission amount is dependant on applicant’s tier. | ||||||||
| Commission Clawback | 100% of the commission amount paid to the broker will be clawed back if within the first 12 months of the loan term the contract is subject to a repossession of the security, the loan is considered a total loss due to the customer’s failure to pay or the contract is deemed fraudulent. | ||||||||
| Rate Loading | A 1% interest rate loading applies to Leaseback and written-off vehicles. (Maximum Interest Rate is 29.99%) |
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| Income & Servicing Guide | |
|---|---|
| Knockouts: | No more than 30% of income to be classed as high risk (Gambling, ATM withdrawals, Crypto etc.). |
| Dealing with a financial counsellor or budgeting service provider. | |
| Remote locations. | |
| Residential address is a caravan park. | |
| Evidence of habitual pay-day use. | |
| Company director is involved in another company liquidation or strike off action. | |
| Existing UME Loans Clients: | Previous good repayment history will be considered for those applicants who fall outside of the above criteria. |
| Settlements Conditions: | Name, Address and Mobile number for 2 personal references. 1 must be a relative. |
| Name, Address and Mobile number for 1 Authorised Contact. | |
| Selfie ID – Must be a clear and unobstructed photo. | |
| Photo of front and back of Drivers Licence – Must be clear and unobstructed. | |
| Photo of front of Medicare card – Must be clear and unobstructed. | |
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.
