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Update for customers with business lending contracts of $1,000,000 or less

31 July 2018

Suncorp is committed to supporting small business and we wanted to let you know that we’ve updated our lending contract terms and conditions to make them fairer for small business customers.

We’ve summarised the main changes below, which will apply to both new and existing customers with a business loan contract with Suncorp-Metway Limited with a value of $1,000,000 or less*. These changes are effective from 1 July 2018 and will be honoured for all small business contracts, irrespective of when they were entered into, varied or renewed.

How do small business customers benefit?

For all of our small business customers with a business loan contract value of $1,000,000 or less, the changes will automatically apply. You are not required to do anything to benefit from these changes. 

If you have a Small Business Credit Contract with Suncorp-Metway Limited, you can view Suncorp’s updated terms that you will have the benefit of below:

If your loan was originally for personal or residential investment purposes, please contact us if you wish to see Suncorp’s updated terms relating to facilities regulated under the National Consumer Credit Protection Act 2009.

If you have a Business Banking Offer of Finance (also referred to as your “Letter of Offer”).with Suncorp-Metway Limited please contact your relationship manager or call us on 13 11 55.

If you are unsure of which type of contract you have with us, please contact your relationship manager or call us on 13 11 55.

Summary of clauses that we’ve updated to be fairer

Material Adverse Change clauses

We have removed, and will not be relying on any clause which states that you are in default due to a general or non-specified adverse change. This means that Suncorp will not have default rights if you experience a negative change in your business circumstances unless the specific circumstance falls within one of the situations that are summarised below as Events of Default.

What are the updated Events of Default?

For detailed information about the circumstances which will trigger a Default under Suncorp’s updated terms, please refer above to the relevant updated credit contract or contact us on 13 11 55.  

For many of these events, if the default can be remedied, we’ll provide you with a specified time to do so unless there is an increase in our credit risk, for example an immediate risk to property that is provided as security for the loan.

Generally, by way of summary, the circumstances which may trigger a Default in the updated terms will be if you:

  • fail to pay or if you exceed your facility limit, 
  • become insolvent/bankrupt, 
  • commit fraud or unlawful behaviour
  • are the subject of material creditor enforcement.
  • tell us something that is materially incorrect (misrepresentation) which increases our risk; 
  • use the loan for non-approved purposes; 
  • deal with loan security property improperly or without consent or if there is an event of default under any Security; 
  • change ownership of your company (except as permitted); 
  • lose a licence or permit that is needed to conduct your business; 
  • fail to provide proper accounts; or 
  • fail to maintain insurance.

There are no changes to Events of Default for businesses with contracts >$1,000,000.

Financial indicator covenants

Except in relation to lending for the purposes of property development, using financial indicator covenants as events of default will no longer apply. This means that, for example, if the value of your secured property falls, but you are still making your loan repayments, you will not be in default of your loan contract or mortgage. 

In some circumstances financial indicator covenants may still trigger an event of review. To understand the changes to your specific contract that may relate to financial indicator covenants, please contact your relationship manager or 13 11 75.

Indemnities

Anywhere there is an indemnity in your contract, we won’t seek to rely on this to claim losses that were caused by any fraud, negligence or misconduct by:

  • Suncorp, our employees or contractors or agents
  • any receiver or receiver and manager we appoint when exercising our rights as a holder of security

Unilateral variations

We’ve reduced our ability to rely on clauses which allow us to make changes to your contract at any time without your agreement. In many cases, we’ll also provide you with more notice than we have previously.

More information

If you have any questions or concerns about your small business lending arrangements, please contact your Relationship Manager or call us on 13 11 75.

 

*Please note that the value of your contract is calculated by reference to the total facility amount/s documented in your contract and not by reference to your balance outstanding.

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