FAQ
Interested in DirectMoney?
Looking to Borrow?
Already a Borrower?
Looking to Invest?
Already an Investor?
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Interested in DirectMoney?
Who is behind DirectMoney?
We are a privately held company backed by several professional investors.
Why are you called DirectMoney?
The big idea behind DirectMoney is to 'cut out the banks' and enable ordinary savers and investors to directly participate in the consumer lending market (something the banks and professional investors have been able to do for a long time). Unlike some banks, we take a fixed and transparent fee and share the rest of the profits normally taken by banks between the borrowers and investors.
How long have you been around?
We were founded in June 2006. Our investment and lending products have been available since August 2008.
Is DirectMoney regulated?
Yes we are - very much so. Our Fund is regulated by ASIC and our lending product is regulated by Uniform Consumer Credit Code (UCCC). We are also a member of the Mortgage and Finance Association of Australia (MFAA) and Credit Ombudsman Service Limited (COSL).
Can I buy shares in DirectMoney?
We are planning to make our shares available to small investors in the very near future.
How does DirectMoney make money?
We charge an annual fee for managing investors funds, a settlement fee for cash advances, and may receive referral fees and commissions.
What happens if DirectMoney fails?
The Fund's assets are held by Perpetual Trustee Company Limited so in the event of the failure of the DirectMoney Pty Limited the Fund's assets remain separate.
In the unlikely event that DirectMoney Pty Limited fails the Responsible Entity would appoint a new Investment Manager to manage the Fund.
How can I contact DirectMoney?
Please refer to the
Contact Us page for full details.
What is DirectMoney's data protection policy?
DirectMoney conforms to all Australian data protection laws. Full details of our privacy policy can be found at
Privacy Policy.
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Looking to Borrow?
How much can I borrow?
Up to $100,000 subject to meeting our credit criteria.
Over what timeframe can I borrow?
Up to 5 years.
Can I repay my loan early if I like?
Yes, and you will not be charged early repayment fees.
Is my name and address revealed to investors?
No, investor funds are invested in the Personal Loan Income Fund. The Personal Loan Income Fund pools this money and then lends it to approved borrowers.
Can I choose the repayment date for my loan?
No. Your first repayment will be 30 days after settlement. Subsequent payments will then occur monthly on the same day of the month.
What type of credit search does DirectMoney carry out?
We use both Dun & Bradstreet and Veda Advantage credit bureaus.
What rates can I expect to pay?
Current rates are between 13%p.a. and 18%p.a. depending on your credit score. We expect rates to be 1.5%p.a.–3.5%p.a. lower than the banks depending on your credit score.
I have a bad credit history - can I borrow at DirectMoney?
No. We are currently only available to applicants with a good credit history.
How is the Annual Percentage Rate calculated?
Interest payable is added to total fees and calculated as a percentage of the amount borrowed and expressed as an annual rate.
How are repayments calculated?
Total interest over the term of the loan (calculated on the outstanding principal) is added to the principal and divided into equal monthly installments.
Are there any hidden charges?
No, absolutely not. All fees and charges payable are disclosed clearly and fully in the Personal Loan Contract.
What happens if I default on a DirectMoney loan?
We will take prompt legal action to recover the debt. Default fees are payable as per the Personal Loan Contract.
What can I use a cash advance for?
Any personal (non-business) purpose like car or other vehicle purchase, debt consolidation, home improvements, home contents and furnishings, travel, medical expenses, education expenses or other.
Can I pay off other debts with a cash advance?
Yes.
What are the fees?
We charge a settlement fee of between $125 - $200 depending on your credit score. There are no monthly or early repayment fees.
How do I make repayments?
Repayments must be made by direct debit authorised by your bank or financial institution.
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Already a Borrower?
Can I make one-off payments?
Yes, of any amount. You can also pay off your loan in full without early repayment fees.
Can I change the amount I borrow after applying?
Yes, up to the limit of you credit approval any time before settlement.
Can I borrow more than once?
Yes, up to the limit of your credit approval.
How do I cancel my loan?
If you decide not to proceed with your loan before settlement you can withdraw without penalty. If you wish to pay off your loan in full after settlement you may also do so without any early repayment fees.
How do I change my bank details?
Please contact our support staff. See the
Contact Us page for full details.
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Looking to Invest?
Who can invest?
Individual applicants should be 18 years of age or over. The PDS has been prepared for persons receiving the PDS in Australia.
What’s the minimum/maximum I can invest?
The minimum investment is $2,500, there is no maximum investment.
What returns can I expect?
Please see our current
Target Rates of Return. Remember the Target Rates of Return are only target rates, are not guaranteed, and are subject to change from time to time.
Am I investing all my money in one loan?
No, your money is invested in the Personal Loan Income Fund. The Personal Loan Income Fund intends to lend a minimum of $2,500 with an expected average of $10,000 - $20,000 to large numbers of Prime borrowers thereby minimising exposure to any single loan.
How safe is my investment?
The Fund only lends to borrowers who can demonstrate stable employment and residential history, good credit history and the ability to easily make loan repayments. This credit policy has been designed by DirectMoney with assistance from Dun & Bradstreet credit experts.
The Fund intends to lend relatively small amounts (a minimum of $2,500 with an expected average of $10,000-$20,000) to large numbers of Prime Borrowers. This minimises the effect of any single loan loss and increases the predictability of income distributions to unitholders.
However, all investments involve a certain amount of risk. The key risks associated with this investment are detailed in the PDS.
Where is my money held?
It is invested into the DirectMoney Personal Loan Income Fund. Perpetual Trustees Company Limited hold the assets of the Fund as custodian of the Fund.
Where are my units held?
Perpetual Corporate Trust Limited is the registrar of the Fund and maintains records of the unitholders.
What happens if a borrower defaults on a loan?
The Fund will take prompt legal action to recover the outstanding fees, principal and interest. Any losses will be shared by all unitholders.
Will I know who my borrowers are?
No. Your money is pooled with that of other investors and invested in the DirectMoney Personal Loan Income Fund.
How is DirectMoney's investment approach different to other fund managers?
We are the only income fund investing directly in personal loans. Unlike many income funds, we always require borrowers to make monthly principal repayments by direct debit from the borrowers’ bank account.
We do not make commercial loans and with an average loan size of $10,000 - $20,000 the fund expects to be diversified over many prime borrowers to minimize the impact of any single loan failure.
We never loan to related parties, never capitalise interest and never loan on property development.
How are unit prices calculated?
Unit prices are calculated daily by Perpetual Corporate Trust. Unit pricing is described in the PDS.
How often does the Fund distribute?
Distributions are normally paid within 2 Business Days after the end of the month.
How are distributions paid?
Payment is made by EFT to your nominated account.
How do I withdraw my money?
The Personal Loan Income Fund offers 3 fixed terms of 12 months, 24 months or 36 months. There is no automatic right to withdraw prior to termination of the Investment Term. Withdrawals are described in the PDS.
Does DirectMoney have a regular savings plan?
Yes. You can start a regular investment plan with as little as $250 using direct debit. You select how much and how often you want to invest through direct debit by contacting your financial institution.
What are the fees and costs for the DirectMoney Personal Loan Income Fund?
The Fund has no entry, exit or performance fees – all profits (after management fee and any loan arrears) are passed to unitholders. The management fee is 1.80% p.a. of the net assets of the Fund. See "Fees and Expenses" section of the PDS.
What information do I receive as an investor?
Throughout the year, you will receive:
- transaction confirmations
- quarterly transaction statements
- income distribution statements
- annual tax statements and tax guide
- annual capital gains tax statement after each 30 June, if you have withdrawn or transferred units during the period
- an annual report after each 30 June (half-yearly fund financial accounts are available upon request)
- DirectMoney’s quarterly newsletter
On the web, you will have access to monthly performance for the fund, including specific fund fact sheets/updates, monthly after-tax reporting for the fund, fund profile, unit price history and income distributions. DirectMoney’s customer service team can help you with your investment queries and are available between 8.00 am to 6.00 pm Monday to Friday Sydney time. Please see the
Contact Us page for full details.
Are your funds available through financial advisers?
Yes. The DirectMoney Personal Loan Income Fund is available through financial advisers.
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Already an Investor?
Where can I see what's happening with my investment?
Fund performance is published on this website.
When do I start getting my distributions?
Usually within 2 business days of month end.
Why do my monthly returns vary?
Distributions will fluctuate as personal loans are written at different lending rates. Remember the Target Rates of Return are only target rates and subject to change from time to time.
Can I reinvest my distributions?
Yes. You can choose to have your monthly distributions automatically invested by selecting the distribution reinvestment option in Section E of the Application Form in the PDS.
How can I redeem my units?
There is no automatic right to withdraw prior to termination of the Investment Term (Maturity). Investors must give notice of withdrawal at least 30 days prior to Maturity. We will give you at least 60 days notice prior to Maturity. The minimum amount that can be withdrawn at Maturity is $2,500.
How do I add to my investment?
You can add to your investment by (i) selecting the distribution reinvestment option in Section E of the Application Form, (ii) selecting the monthly regular investment plan on the Application Form or (iii) applying for additional units (the minimum investment amount is $2,500). See the PDS for further details.
How do I make a withdrawal?
You will generally only be able to withdraw all or part of your investment at Maturity (the end of your Investment Term).
Maturity is calculated from the first Business Day of the month in which your units are issued up to the first Business Day of the month the number of months later according to the Investment Term (see example in the PDS).
Although you do not have a right to withdraw your investment before Maturity, the Responsible Entity may, after consultation with DirectMoney, agree to early withdrawal due to hardship, depending on the availability of sufficient funds. Accepted early withdrawal requests will incur an administration fee of 2% of the amount withdrawn.
If you wish to make a withdrawal due to hardship please call DirectMoney on 1300 882 432.
How do I change my contact details, authorised representative or financial adviser?
Please provide written instructions if you wish to change your address, your distribution payment instructions or any other details and send them to:
Registry Services
Perpetual Corporate Trust Limited
GPO Box 5136
Sydney NSW 2000
When providing written instructions please:
- state the full name in which your units are held
- state your investor number
- clearly state the changes you are requesting
- provide a contact name and day-time telephone number; and ensure the appropriate signatories sign the request
You may also be required to provide additional documentation to amend some records, such as changes of name. Please call 1300 652 907 for more information.
How do I setup a savings plan?
The regular investment plan allows you to add to your investment with a minimum monthly contribution of $250 per month. To request a regular investment plan please complete Section D of the Application Form. See the PDS for more details and ensure you read the Direct Debit Terms and Conditions at the back of the PDS.
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