The Borrowing Process  – what can I expect?

If you have applied for a loan before you will know that the amount of paperwork required to support your application can at times be huge. Our role is to help our customers organise their affairs before they submit the loan and then work with them to ensure that the lender obtains what they need to make an informed decision in minimum time.

The time taken to gain the approval can vary depending on what type of loan you require and if all of the required information is provided. As a guide, home loans are usually a lot quicker to reach unconditional approval stage (3 to 5 business days from submission to lender) compared to the more complex business loans (5 to 10 business days). The likely timeframe for your loan application will be discussed with you at the initial meeting.

Home and investment loans – steps involved

  1. Initial meeting – we will conduct a detailed needs analysis by asking questions about your needs and objectives, your borrowing history and obtain your financial details including assets, liabilities, income and expenses. While the exact supporting documentation will be clarified once the lender is chosen the items listed below will assist us to conduct the research and analysis outlined in Step 2.
    What do I need to bring to the meeting?

    • An outline of what you would like to borrow for, how much you can contribute to the cost and any loan features that you require.
    • Original identification document such as a passport or a driver’s licence. A legible photocopy will be required by the lender.
    • Income documents such as two recent pay advices.
    • Recent bank statement/s for your current loan account/s and any other credit related liability such as a credit card or store card.
    • Your last tax return and tax assessment notice.
    • Recent bank statement for your transaction account.
  2. Research and analysis – we will use the information gathered in Step 1 to find suitable lenders with offers that match your needs and objectives. We will check the costs and verify what additional information is required for each option.
  3. Preliminary discussion – we will arrange to meet with you to present the options and discuss and explain the features, conditions benefits and costs. Once you have made a choice we will gather any additional information and prepare a loan application.
  4. Submit the application – the loan application will be submitted as soon as possible after Step 3. We will be mindful of any urgent needs such meeting the cooling off period for a property purchase. We will liaise with the lender to ensure that the application proceeds through their system and we will update you regularly on its progress.
  5. Loan decision and documentation – once the application has been approved the lender will arrange loan and security documentation. We will review the documentation for you and discuss the key elements of the loan offer with you to ensure that you understand your commitment and obligations. On occasions it may be necessary or prudent for you to obtain additional professional advice from your Accountant, legal practitioner or financial planner. Once the documentation has been signed it will be returned to the lender with a copy retained by you. At this stage you may also need to provide copy of your home and contents insurance policy and ensure that any of your own funds that are being contributed are available.
  6. Funds provided – once the lender has verified all documentation is correctly signed and requirements met they will arrange to provide the loan funds. This could be as simple as depositing the loan proceeds to your nominated account (for an increase) or arranging settlement of a property purchase with your legal practitioner. If you are purchasing we will liaise with the real estate agent and legal practitioner to ensure the settlement process goes smoothly.

Business loans and equipment finance – steps involved

  1. Initial meeting – the initial meeting will mainly be a discussion about your requirements and an outline of your business. If you have a business structure that includes multiple entities then a detailed organisational chart is a very useful document to start the discussion. Bringing the most recent full year financial statements along to the first meeting is also useful.
  2. List of information requirements – depending on your requirements the information needed to support your application could be relatively simple for say a motor vehicle lease or extensive for say cash flow funding or specialist transactions.
    Items that may be required by most lenders include:

    • Last two years financial statements including balance sheet, profit and loss and notes to the accounts
    • Original identification document such as a passport or a driver’s licence for each director (must be sighted at the initial or subsequent interview). A legible photocopy will be required by the lender.
    • Cash flow projections for a twelve month period.
    • A schedule of fixed commitments for loan accounts and equipment finance.
    • Recent bank statement/s for current loan account/s.
    • Last two years tax return and tax assessment notice.
    • Recent bank statements for the business’ transaction account covering a six month period.
    • Interim profit and loss accounts or BAS statements.
    • Most recent aged receivables and payables schedule.
    • Specialist information for transactions such as SMSF Loans, hotel purchase, property development.
  3. Research and analysis – the aim of obtaining detailed information is to enable us and the lender to fully understand the cash generation capacity and operational aspects of the business. We will also review your key business risks and assess how the respective risks are either eliminated or reduced. Once these elements are understood a search will be conducted for lender options.
  4. Preliminary discussion – once we have identified options to meet your requirements we will arrange a meeting to discuss the features and costs of each option.
  5. Submit the application – after obtaining your mandate to proceed we will submit the application to the lender, track its progress and keep you informed. A valuation report for offered security properties may be required. The lender will instruct the valuer and will require payment upfront from the applicant
  6. Funding – once the lender has verified all documentation is correctly signed and requirements met they will arrange to provide the agreed loan funds or access the approved credit facility (e.g. overdraft) will be granted.
  7. Post funding – depending on the type of loan the lender may require ongoing review of your financial information. We can assist you with setting up a lender information pack that will assist you with meeting this requirement.
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