How finance is sold: brokers, aggregators, dealers, commissions and the paperwork in between.
21 terms in this topic
An agent is a person or business authorised to act on behalf of another party, the principal, in transactions and negotiations within an agreed scope of authority.
Read definitionAn aggregator is the organisation that sits between finance brokers and lenders, giving its broker network access to a lender panel, technology, compliance support and commission processing.
Read definitionArtificial intelligence (AI) is technology that lets computer systems learn from data, recognise patterns and make decisions that would traditionally require human judgement, including credit decisions in lending.
Read definitionAn assignment of contract is the transfer of one party's rights under a contract, such as the right to be paid, to a third party, without transferring the assignor's obligations.
Read definitionA broker is a licensed intermediary who connects borrowers with lenders, comparing finance options across a panel of lenders and submitting applications on the borrower's behalf.
Read definitionClawbacks are contract clauses that let a lender or aggregator recover commission already paid to a broker when a loan is repaid, refinanced or discharged within a set period.
Read definitionCommissions are payments a lender or product issuer makes to a broker, adviser or referrer for arranging or servicing a financial product, paid upfront, as ongoing trail or both.
Read definitionA commitment letter is a document from a lender confirming it will provide a specified amount of finance on stated terms, subject to listed conditions being met before drawdown.
Read definitionDealers are businesses that buy and resell goods such as vehicles, equipment or machinery, and often arrange or introduce finance for the buyer at the point of sale.
Read definitionDistributors are businesses that buy goods from a manufacturer and resell them to dealers, retailers or end customers, often supporting the sale with pre-arranged finance programs and stocking finance.
Read definitionAn e-signature (electronic signature) is any electronic mark, action or process that shows a person's intention to accept the contents of an electronic document or message.
Read definitionA facility letter is a lender's written confirmation of the terms on which it proposes to provide a loan or other finance facility to a borrower.
Read definitionFintech (short for financial technology) is the use of software, data and modern infrastructure to deliver or improve financial services, from mobile payments and digital banking to online lending.
Read definitionOpen banking is the regulated framework under Australia's Consumer Data Right (CDR) that lets you authorise accredited third parties to access specific financial data held by your bank.
Read definitionOrigination is the whole front end of a financed transaction, from finding and qualifying the borrower through application, underwriting and approval to documentation and settlement.
Read definitionPrime lenders are lenders whose credit appetite is built around lower-risk borrowers: they apply conservative underwriting and stricter documentation, and offer standardised contracts and generally more favourable pricing.
Read definitionRelationship lending is credit that a lender underwrites and manages using information built up over repeated dealings with the borrower, blending hard data with soft insights from relationship managers.
Read definitionSales aid finance is a vendor's point-of-sale finance program that lets customers pay for a purchase in regular repayments while the lender pays the vendor at settlement.
Read definitionSpecialist lenders for temporary residents are non-bank lenders, mortgage managers, credit unions and boutique banks that write home loans major banks decline on visa grounds.
Read definitionSub-broking is a commercial arrangement where an individual or firm without its own licence introduces customers, generates leads or assists with transactions for a licensed broker or licence holder.
Read definitionA supplier is the party that sells the asset being financed, whether a vehicle dealer, equipment distributor, manufacturer or private seller, and is usually paid by the lender at settlement.
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