In March 2018, ASIC released Report 565 Unfair contract terms and small business loans (REP 565). This report outlines the changes to small business loan contracts made by the big four banks to comply with the unfair contract terms law. It also provides detailed guidance for other lenders who may need to review their small business loan contracts.
Unfair contract terms and small business loans
The unfair contract terms law applies to standard form small business loan contracts entered into or renewed on or after 12 November 2016 where the upfront price payable does not exceed $300,000 (or $1 million if the contract is for longer than 12 months).