Target Market Determination

NEXT PERIODIC REVIEW DATE: 15 DECEMBER 2023

 

Elevare Pay Easy Pty Ltd A.C.N. 634 728 591 (Elepay) (we, us or our) issues PayLater products to Australian Property Owners and we are committed to maintaining a consumer-centric approach throughout our product design phase, distribution and sales channels, and monitoring and review process.  This Target Market Determination (TMD) is effective as at 15 June 2023.  

 

​

1.  Purpose of this TMD

 

This TMD has been prepared by Elepay for its ‘60 Days Product’, ‘90 Days Product’ and ‘120 Days Product’ (collectively
Products or 60- 90- and 120- Days Products) in compliance with our Design and Distribution Obligations under Part 7.8A of
the Corporations Act 2001 (DDO).

This TMD sets out the class of consumer for which the Products have been designed having regard to the objectives, financial
situation and needs of consumers in the Products’ target market. It includes the following:

​

• product features and class of consumers that fall within the target market;

• distribution conditions, restrictions and sales practices that are likely to direct distribution of the Products to the target market;

• information relating to reviews and monitoring of the Products and this TMD, including specifying timing for periodic reviews and review triggers (i.e., the events or circumstances which would trigger a review);

• how we deal with significant dealings.

​

This TMD does not offer a comprehensive outline of the Products’ terms and conditions, nor is it a substitute for obtaining
independent legal or financial advice. Consumers should read the full terms and conditions before applying for any of the
Products.

​

​

2. Background to the 60- 90- and 120- Days Products

​

The 60- 90- and 120- Days Products are part of a suite of PayLater Products Elepay offers to Australian Property Owners who
anticipate that a monetization event will occur in the foreseeable future (primarily, the sale of real property but may also
include the refinance with a third-party lender).*

An “Australian Property Owner” includes:

• any person or entity who is a registered proprietor to real property held in Australia (Owner);

• any person or entity who is an appointed representative of an Owner (e.g. appointed attorney or executor of a deceased estate); or

• any person or entity who has the express consent of the Owner to acquire the Products relating to the Owner’s property
  (for example, Elepay may require the registered proprietor to sign a Deed of Consent).

​

The primary objective of the 60- 90- and 120- Days Products is to allow these property owners the opportunity to better
manage their cash flow by allowing them to defer any upfront property-related expense until the occurrence of the
monetization event.*

The 60- 90- and 120- Days Products may be used by consumers to fund property-related expenses such as:

• home renovation and improvement;

• marketing and advertising;

• property styling (to sell) and interior design;

• deposit for a new purchased property;

• repair and maintenance;

• transportation, storage and removalist costs; and

• other property-related works or expense,

       (Property-related Costs).

​

Elepay has partnered up with a number of styling companies, pre-listing companies, renovation companies and real estate
agents, who allow consumers to defer payment of any upfront Property-related Cost (payable by the consumer to the
Partner) via Elepay’s 60- 90- and 120- Days Products.
 

​

3. Class of consumers that comprises the Target Market

​

The 60- 90- and 120- Days Products are designed exclusively for consumers who meet our Eligibility Criteria and who wish to
defer payment of their upfront Property-related Costs on the basis that there is a foreseeable monetization event (Target
Market).

The Target Market is subject to clause 6 of this TMD (Exceptional Consumers).

​

​

CLASS OF CONSUMERS WITHIN THE TARGET MARKET

​

The 60- 90- and 120- Days Products are for the class of consumers who:

• falls within the definition of Australian Property Owner (see above) and require short-term lending solutions to pay Property-related Costs;

• are seeking finance with flexible payment options, capped fees and interest for the term of the loan and the ability to make early repayments without additional charges;

• meets Elepay’s Eligibility Criteria (set out below);

• are not currently experiencing financial hardship;

• are able to repay the loan amount by way of a single lump sum payment (at the end of the term) or 4 instalments over the last 45 days of the loan term without causing financial hardship;

• are agreeable to repaying the loan (in full) upon the occurrence of the monetization event (even if this is prior to the scheduled repayment date(s)).

​

EXCLUDED CLASS OF CONSUMERS

​

The 60- 90- and 120- Days Products are not suitable for consumers who:

• do not fall within the definition of Australian Property Owner;

• do not otherwise meet Elepay’s Eligibility Criteria;

• are going through bankruptcy or are experiencing, or are likely to, suffer from financial hardship;

• are considered vulnerable persons (e.g. suffering from any form of cognitive impairment);

• require an ongoing line of credit;

• require a redraw facility;

• are not comfortable with providing security over their real property.

​

​

Eligibility Criteria and Other Product Key Attributes

​

ELIGIBILITY CRITERIA

​

To be eligible for the 60- 90- and 120- Days Products, a consumer must satisfy the following requirements:

• be an individual aged 18 years or above;

• fall within the definition of Australian Property Owner (see above);

• have an anticipated monetization event (for example, proposes to sell their property within the foreseeable future).
  Elepay may offer the product based on other monetization events (e.g. refinance from a third-party lender) subject to an individual assessment of the consumer’s circumstances.*

• if the monetization event is the sale of the consumer’s property, then meets Elepay’s Property Sale Equity Analysis, which
  ensures that the consumer has suffcient net equity to repay the loan upon the sale of the consumer’s property without
  causing financial hardship. The consumer will not be subject to an income serviceability assessment.*
  Elepay will request details regarding the sale of the property (to ensure that there is suffcient net equity and the
  consumer proposes, or are actively taking steps, to sell their property). This includes, but is not limited to:

• details of the proposed sale – e.g. listing date and expected sale price;

• details of the appointed real estate agent and conveyancer or solicitor;

• details of any registered co-owner(s);

• a copy of a recent mortgage statement and supporting documentation regarding any other registered encumbrance);

• a copy of the real estate agent sales appointment form;

• a copy of the contract of sale (if available);

• a copy of any valuation of the property (if available).

​

Elepay’s Property Sale Equity Analysis involves an analysis of the total net equity and forecasted sale value of the
consumer’s property based on the stage in which the sale of the property is at – that is, pre-listing, listed, sold
(conditional) or sold (unconditional).

In order for a loan application to be approved, the application must satisfy each of the following criteria:

(a) Total Net Equity Threshold – which sets the minimum thresholds an application must satisfy based on a
comparative ratio between the loan amount and total net equity (forecasted sale price less all related liabilities
and costs of selling the property); and

(b) Forecasted Sale Value Threshold – which sets the minimum thresholds an application must satisfy based on a
comparative ratio between the loan amount and forecasted sale price (e.g. minimum low value obtained from a
property valuation company or actual sale price).

The minimum threshold amounts for each criteria vary depending on the stage in which the sale of the property is at.
Elepay utilises its internal Funding Assessment Calculator to determine:

• whether both the Total Net Equity Threshold and Forecasted Sale Value Threshold are satisfied; and

• the maximum amount of funding a consumer may receive,

based on a number of variables such as, the stage of the monetization event, total net equity and forecasted sale price;

• meet Elepay’s standard lending criteria including:

  • conducting a credit check on the consumer;

  • conducting an identity verification check on the consumer;

  • conducting an ownership check (including title search of the property);

  • conducting an online property valuation report (for the property);

• require funding of a minimum amount of $100.00;

• the maximum amount of funding a consumer may be eligible for is $500,000 (this is subject to stringent assessment of Elepay’s Property Sale Equity Analysis and other lending criteria (see further below)).

​

​

OTHER KEY PRODUCT ATTRIBUTES

​

Some key attributes of the 60- 90- and 120- Days Products include:

• Structure –

  • the 60-Day Product is structured so that the consumer enters into a loan with Elepay for a term of 60 days;

  • the 90-Days Product is structured so that:

    • the consumer enters into a first loan for a term of 28 days; and

    • the consumer has the option to enter into a second loan for 62 days (in which case, no fee or charges are payable under the first loan);

  • the 120-Days Product is structured so that:

    • the consumer enters into a first loan for a term of 58 days; and

    • the consumer has the option to enter into a second loan for 62 days (in which case, no fee or charges are payable under the first loan)

• Purpose of loan - the loan must be used to fund Property-related Costs which are incurred by the consumer from an
  approved 60/90/120 Partner or a supplier (or other entity) of the Consumer’s choice (whether partial or in full);

• Number of Instalments – the consumer has the option to choose between a single instalment (at the end of the loan
  term) or 4 instalments equally spread out across the last 45 days of the loan term;

• Repayment– the consumer is required to repay the loan (in full) upon the earlier of (a) the settlement date (if the property
  is sold) and (b) the final repayment date (being for the 60-Days Product, 60 days from the Elepay Start Date, for the 90-
  Days Product, 90 days from the Elepay Start Date and for the 120-Days Product, 120 days from the Elepay Start Date).
  Early repayment is possible without penalty (see below);

• Partner’s goods or services – if the loan relates to Property-related Costs incurred from an Elepay Partner, then the
  Partner has an obligation under its Partner Agreement with Elepay to supply goods and services to the consumer with
  reasonable care and skill and in accordance with the supply terms between the Partner and the consumer. If the
  Consumer is incurring Property-related Costs from a supplier of the Consumer’s choice, then the Consumer's Supplier will
  be solely responsible for the products or services provided to the consumer.

• Fee Structure – the Fee structure for the 60- 90- and 120- Days Products is as follows:​​

​

​For the 60-Day Product:​