Frequently Asked Questions

ABOUT IBN DIRECT

Who is IBN Direct?

IBN Direct is a specialist broker who has access to over 200 Private lending options to place deals that fall outside traditional bank policies and guidelines.

How long have you been in business?

IBN Direct was established in 2004.

What kind of experience do your staff have?

Our staff have decades of finance industry experience in everything from the ‘big banks’ to second tier lenders.

What loan amounts do you arrange funding for?

Generally from $500,000 to $50 million, with higher amounts available upon application.

How long are the loans for?

Generally we arrange funding for up to 2 years.

What is the benefit to me to use IBN Direct?

IBN Direct has access to over 200 Private Lending Options in addition to traditional banks and non-bank funding, giving you the greatest chance of finding a lender suitable to your needs.

Our experienced staff will be able to quickly assess your situation and advise if we can assist. We have a solid relationship with our Funders. We will keep you updated on the progress of your loan with frequent communication.

Where is IBN located?

We have offices in Melbourne, Sydney, Brisbane and our processing centre is located on the Sunshine Coast. We fund deals Australia-wide.

Can IBN gain finance in all states?

IBN has funders in all states.

Do IBN do home loans?

We can do home loans but it is not our core business. Wherever possible, we encourage our Referrer to access their own panel of funders prior to engaging IBN.

Do IBN do rural lending?

We do have private funding options available for rural lending however, we are restricted by funder policy to a degree.

How do I apply for a loan through IBN?

Simply call our office on 1300 668 551 to speak to one of our experienced team. We will give you a quick ‘yes’ or ‘no’ if your loan is something we can assist with.

Will IBN look at deals with credit impairment such as defaults, tax debt, previous bankruptcies etc.?

Absolutely!  IBN Direct are experts in finding commercial funding solutions that fall outside the traditional guidelines for lending.

Will IBN look at development deals with no presales?

This is our core business. IBN specialises in funding Development deals where the Banks have said no because they want presales. This may be a matter of simply having none at the time of the funding request or alternatively would like funding made available sooner rather than having to wait on presales.

THE PROCESS

Can I apply online?

Yes, you can send an enquiry to us via our website using the “Get a Quote” page.

Who assesses my loan?

Our highly trained credit staff will assess your loan to evaluate if it is something IBN can assist with and then we will contact you to discuss options.

Can I talk directly to the IBN Credit staff?

Absolutely. Phone 1300 668 551 or email [email protected]

What is the Process?

  1. Submit new enquiry on IBN Direct “New Enquiry Form” or Submit Online
  2. Receive confirmation that IBN can assist.
  3. If through a Broker, their Referrer Accreditation must be in place before file can proceed.
  4. IBN Direct source potential Funders.
  5. Engagement Letter & Mandate issued complete with terms.
  6. Completed items to be returned:
    • Executed Engagement Letter & Mandate;
    • Fully completed IBN Direct Application form, together with supporting documentation.
  7. IBN Direct formally submit complete application to relevant Funder.
  8. Conditional approval received from Funder:
    • The IBN Consultancy Fee must be paid prior to release of this offer;
    • Once the IBN Consultancy Fee is received, the Funders’ conditional offer is supplied;
    • Funders’ offer accepted and conditions satisfied.
  9. Formal approval issued.
  10. Settlement.

What are the likely rates?

Rates can vary depending on the type of funding and the lender. For an accurate rate quote please complete our “Get a Quote” form. For rate guidelines, please refer to the rate ranges provided on our website here.

Why is rate so high?

Private lending funds are usually sought when loans fall outside traditional bank lending criteria, therefore funds are lent against greater than normal risk which will attract a higher rate of interest.

Can you get a cheaper rate?

Whilst sometimes a cheaper rate may be available, it is not always the best solution for the client. For every deal we will always quote a range where we consider funding can be comfortably achieved. We would rather ‘under promise’ and ‘over deliver’ rather than quote rates that are not achievable.

Who is the Lender?

With a panel of over 600 funders it will be depend on the type of deal and location of deal to know where it would sit best. Lender details will not be provided to the Client or the Referrer until such time our Engagement Letter and Mandate have been signed and the upfront consultancy fee has been paid.

Who are the Private Lenders you use?

We have many lenders on our panel who have met our stringent criteria so you can be assured that we introduce you to highly reputable and quality lenders.

What do the private lending companies look like?

They can be anything from large Private Lending Companies, Superannuation Funds, Managed Investment Systems, Solicitors Funds or High Net-Worth individuals.

Do you also use mainstream lenders?

Yes, we often place deals with mainstream lenders, however, our speciality is private funding.

Have you got a lender lined up?

We will not issue an engagement letter unless we believe your deal can be funded. We have an in depth knowledge of our Lenders criteria, so we know what will and will not fit. Our lenders are not contracted until after we have been formally engaged. We take on deals that from experience we would have a number of lender options and believe a successful outcome is highly achievable.

Can we use an existing valuation?

Possibly, but not always. This will be up to the individual funder. If there is a current valuation held by the client this is a question that can certainly be asked of a lender once the deal has progressed.

What are the fees payable?

There are fees charged by IBN and fees charged by the lender. IBN charges a consultancy fee payable prior to the to release the Lenders conditional offer. The current fee is $2,200 inclusive of GST and there is also success fee of 2.2% inclusive of GST of the total loan amount, payable upon settlement. Lender fees can vary between lenders but range from 0.5% to 2% for the establishment fee and on top of this fees are charged in most instances for valuations and legals.

Do you charge an upfront consultancy fee?

No, we don’t! IBN charges an consultancy fee prior to the to release the Lenders conditional offer, for the work and hours spent in approaching lenders and trying to get the deal set with a lender that will provide the best possible outcome for the client. More work is required for a typical IBN Application as generally it has been in the market for some time and has issues getting traditional funding. This fee also covers our in office searches and a desktop valuation.

When is the Brokerage fee payable?

Our brokerage (success) fee of 2.2% inclusive of GST of the total loan amount is charged upon settlement.

How long before you issue an engagement letter?

This depends on the funder and what type of loan the Client is applying for.

For Short Term Business loans –  a same day response is quite common, but up to 24 – 48 hours.
For Commercial/Residential loans – usually  24-48 hours

How long does the loan approval take?

This depends on the funder and what type of loan the Client is applying for.

For Short Term Business loans – usually 24 – 48 hours.
For Commercial/Residential loans – usually  3-5 working days

How long to settlement?

This depends on the funder and what type of loan the Client is applying for and how quickly they can provide the information and documentation requested.

Short Term Business loans – usually 24 – 48 hours after loan and mortgage documents have been received.
Commercial/Residential loans – usually 48 – 72 hours after loan and mortgage documents have been received.

When can I have the funds?

This will depend on the funder, what type of loan the Client is applying for, and how quickly the Client can provide the information and documentation requested.

Short Term Business Loans – Can be turned around quickly depending on the lender and if a valuation is required.  It is not uncommon to settle short term loans the same or next day, but it can take up to 2 – 5 working days.
Commercial/Residential loans – Usually takes around 4 weeks
Development Loans – From lodgement with lender to settlement we generally work on 4 to 5 weeks providing everything goes to plan. There are things outside our control like valuations that could delay the process.

Are there early repayment fees on the loan?

Not generally, but this is dependent on the type of loan. All costs are clearly outlined in the funder documentation and we are happy to help clarify any concerns you may have.

Get more information about the type of loans we can help you place: