Question 1

What is trail book financing?

Accepted Answer

Trail book financing allows mortgage brokers to access up to 100% of the value of their trail book, providing immediate capital for business growth, personal needs, or other opportunities.

Question 2

How much can I borrow?

Accepted Answer

You can access between $50,000 to $500,000, up to 100% of the value of your trail book.

Question 3

What are the eligibility requirements?

Accepted Answer

To qualify, you need to have more than $3,000 (ex GST) of monthly trail, actively be writing loans and have an agreement in place with an aggregator.

Question 4

How long does the application process take?

Accepted Answer

Funding can be completed as quickly as within the same day, provided all required materials and documentation are submitted to us.

Question 5

Do I need to sell my trail book to access capital?

Accepted Answer

No.

Question 6

What can I use the capital for?

Accepted Answer

You can use the capital for any purpose - business expansion, hiring staff, marketing, purchasing another book of business, personal expenses, debt consolidation, or any other financial need.

Question 7

How is my trail book valued?

Accepted Answer

A trail book valuation considers factors such as annual trail commission revenue, client retention rates, age of loans, average loan size, clawback rates and overall quality of your business.

Question 8

Are there any fees involved?

Accepted Answer

Yes, there is a setup fee, a monthly fee, and a discharge fee at the end of the loan term.

Question 9

How is the loan structured?

Accepted Answer

It's a 3, 4, or 5 year loan with equal payments, similar to a car loan.

Question 10

Which aggregators do you work with?

Accepted Answer

We work with ALL aggregators. They will need to agree to direct some of the trail to us to repay the loan.

Question 11

What if I have ATO or other debts?

Accepted Answer

That's okay, but you have to use our capital to refinance them. All existing debts must be cleared as part of the arrangement.

Question 12

What documents are involved?

Accepted Answer

1. A Facility Agreement (aka loan agreement) which clearly lays out the basic terms of the loan. 2. A General Security Deed (aka GSD) which gives us security over the book and the business. 3. Tripartite Agreement, a three way agreement between us and the aggregator agreeing to direct some of the trail to us to repay the loan.

Question 13

Can I repay it early?

Accepted Answer

Yes you can, but there is a small fee, as we have to find a new company to lend that money to.

Question 14

Do I need to provide company financials?

Accepted Answer

No.

Question 15

Do you do a credit check on me or my company?

Accepted Answer

We only run a credit check at the final stage of your loan approval with your permission.

Question 16

Can I draw the money over time?

Accepted Answer

Yes.

Question 17

Can I later increase the loan amount?

Accepted Answer

Sure.

Question 18

Do you fund sub-aggregators or groups?

Accepted Answer

Yes. We support individual brokers, sub-aggregators, and full groups with tailored facilities.

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