Professional Industries Business Banking Commercial Lending Guidelines.

Professional Industries Business Banking Commercial Lending Guidelines.

*The information below is only a guide and is current as at June 2024, the below can change at any time. Each loan application will be subject to individual assessment in accordance with the banks credit and other internal policies.

Technology policy Guidelines

Technology companies

• IT Services and Consulting businesses
• Software (SaaS)

Maximum LVR

IT services and consulting businesses

• When revenue > $30M max Lending of 3 X EBITDA
• When revenue < $30M max Lending of 2 X EBITDA

Software (SaaS)

• When revenue >$3.0M max Lending of 3x EBITD

 

IT Services and consulting businesses description.

• Managed hosting and infrastructure services.
• Managed IT end-user compute services
• Business telephony and conferencing services
• Integrated hardware and software providers
• Managed security services
• Professional services

 

Medical guidelines

• Modalities; GP centric medical, diagnostic, day hospitals, veterinary clinics, dental services.

Target client characteristics

• Minimum commercial debt of $1m
• Minimum revenue of $2.5m
• Large clinic, or multi-site medical practices in metropolitan locations

Maximum LVR and term

• General Practice Medical Services, Diagnostic Services, Day Hospitals: – Up to 3.5x EBITDA1 or 70% of external valuation
• Vet and Dental: – Up to 3x EBITDA1 or 70% of external valuation

Security

• General security agreement (GSA)
• Personal guarantees

Commercial property LVR

• Up to 80% LVR for commercial occupied property. Interest only term also available.

Specialist Exertion loan (medico Specialists Guidelines.

Qualifying criteria Other criteria may apply

• Must be a GP, Medical Specialist or Surgeon as defined by AHPRA (Australian Health Practitioner Regulation Authority) Maximum total loan amount
• Up to $1m based on net taxable income from personal exertion.

LVR <90%

Loan terms 10 years.

Up to $1.0 Million; net taxable income from personal exertion.

 

Industry policy guidelines

Built Environment includes Engineers, Architects, Planners, Surveyors, associated service providers in Built Environment, Legal services.

Maximum LVR

Build environment;

• up to 2.0 x EBITDA subject to business turnover, 2 or more business partners.

Legal services;

• For 2 partners, up to 1x yearly stabilised earnings per partner (capped at $500k per partner). For 3 or more partners, up to 1x yearly stabilised earnings per partner (capped at $1m per partner).

Accounting and financial planners

Qualifying criteria;

• 2 or more partners/directors/advisers that are guarantors • Minimum recurring revenue of $1.5m.
• Maximum LVR Up to 3.75x EBITDA

Insurance Guidelines

• Minimum recurring revenue $500k • Preference for 2 or more directors (key person risk to be assessed for 1 director)
• Maximum LVR • For recurring revenue ≤$1m, up to 60% of asset value determined by internal Macquarie Multiplier and amortising • For recurring revenue >$1m, up to 4x EBITDA1 amortising.

Real estate and Strata.

• Maximum LVR Up to a maximum of 70% of rent roll value determined by internal Macquarie Multiplier (no cost to client) and must amortise to 60% within 3 years
• Where lots under management <5,000 and all WA based strata up to a maximum of 70% of strata roll value.
• Where lots under management ≥5,000 excluding all WA based Strata Managers, up to 4.5x EBITDA.
• Business Valuations determined by internal Macquarie Multiplier (no cost to client).

Property: Commercial property LVR

1. Loan tenor requirements 

Minimum loan tenor requirements: 

• Setting loan tenor to match WALE for all commercial property investment transactions (<$20m) up to 5 years.

1. Commercial property LVRs 

Maximum LVRs for commercial property up to: 

Please note; The LVR will vary with each banks de[ending upon on types of commercial properties and banks LVR policy at the time of the enquiry.

• 70% for <$7.5M properties  
• 65% for >$7.5M properties  
• 80% for owner occupied medical practitioners

All the above is still subject to bank/credit approval, please keep us in mind for:

• Business lending – comm property (owner occupied) & goodwill/cashflow lending in the professional service industries(tech firms, accounting, fin planning books, rent rolls, legal, insurance broking, engineers, medico etc.) > $1m in total lending
• Commercial property investors – office/industrial/retail (established, non-specialised, metro locations etc.) > $5m in lending
• Residential property investors – Resi property portfolios and/or large residential and/or commercial medico transactions > $5m in lending