All Topics / Creative Investing / Australian Credit Licence – Registration Assistance for Vendor Financiers

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  • Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi All


    With 30 June drawing near, it's essential for all real estate Vendor Financiers, to Register for the new Australian Credit Licence (ACL) by 30 June 2010 and preferably before 18 June 2010.


    This Registration is required for all Vendor Financiers who will be in the business of providing credit via Instalment Contracts and 2nd mortgages, from 1 July 2010.  Vendor Financiers who will supply only Lease/Options from 1 July 2010 do not need to Register as Lease/Options are not covered under the new Act.


    The Vendor Finance Institute is offering a free, step by step ACL Registration Guide to all Vendor Financiiers at:
    http://www.vendorfinanceinstitute.com.au


    I declare an interest, i.e. I am a Director of Vendor Finace Institute Pty Ltd.


    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of daba373daba373
    Member
    @daba373
    Join Date: 2010
    Post Count: 9

    Hi Paul,

    I want to get in Vendor Finance sometime in the year or early 2011 – any issue or difference in requirement of ACL application after 30jun2010 deadline?

    Regards,

    Jason

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Jason

    If you register before 30 June, you can run your vendor finance business, in accordance with the new National Credit Code, up to 31 December 2010.  This effectively gives you from 1 July to 31 December to apply for your ACL.

    If you do not register before 30 June you may not be in the business of providing credit or credit advice until you have your ACL.

    If you do not register before 30 June and you wish to provide credit or credit advice thereafter, you may apply to an ACL holder (or a Registered entity, up to 31 December) to become their Representative.  This would allow you to operate as a ACL Representative until you get your own ACL.

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of itsandrewitsandrew
    Participant
    @itsandrew
    Join Date: 2007
    Post Count: 294

    What do you have to do to get your ACL?  Is there a qualification to get first or do you just pay a registration/licence fee?

    Andrew

    itsandrew

    Go as far as you can see and you will see further.

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Andrew

    To Register for the ACL and thereby be allowed to continue providing credit or credit advice until 31 December, you must Register with ASIC before close of business tomorrow (30 June).  The registration process requires you to join an External Dispute Resolution provider, e.g. the Credit Ombudsman Service Ltd and then go onto the ASIC website and complete the Registration form.  For a small vendor finance business it costs $495 ($165 joining fee & $330 for a portfolio of loans less than $1 million) to join COSL and nothing to Register on the ASIC site.

    Applications for the ACL are available from 1 July 2010.  If you have run a vendor finance business for a minimum of 2 years you may not need any further qualifications until 2014, when you'll probably need a Certificate IV in Financial Services.  If you haven't got previous experience, you'll need to do the Cert IV qualification prior to completing your application.  Some training organisations can complete the Cert IV training course in 3 straight days.

    If you are interested, have a look at:
    http://www.asic.gov.au/credit

    Cheers,  Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

    Profile photo of itsandrewitsandrew
    Participant
    @itsandrew
    Join Date: 2007
    Post Count: 294

    Many thanks Paul,

    So where does that leave people like me who want to look at vendor finance as part of a +ve cashflow portfoilio?

    Andrew

    itsandrew

    Go as far as you can see and you will see further.

    Profile photo of Paul DobsonPaul Dobson
    Participant
    @pauldobson
    Join Date: 2003
    Post Count: 1,196

    Hi Andrew

    It's early days yet but the following should help:
    1.  Become a Representative of an ACL holder
    2.  Do a joint venture with an ACL holder

    It is also important to remember that the new Act stipulates that you only need an ACL if you are "in the business of" providing credit or credit advice.  If you want to do one or two vendor finance transactions to sell off a couple of properties you own, you may not need the ACL.  However, the transaction will need to be setup and managed as per the new National Credit Code.

    Please ensure you get independent legal advice concerning all the above.

    Cheers, Paul

    Paul Dobson | Vendor Finance Institute
    http://www.vendorfinanceinstitute.com.au
    Email Me | Phone Me

    An alternative way to finance your home.

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