Frequently asked questions
Below are a list of frequently asked questions about Income Direct's Fixed Income Accounts.
Still have questions? Give us a call on 1300 798 334. One of our personal relationship managers will be happy to help.
Popular FAQs
How can you offer such competitive rates?
Our interest rates are reflective of our cost structure and business model. We also believe in rewarding our clients with competitive interest rates given their capital enables us to grow our business.It is helpful to note that Income Direct:Note: Income Direct does not invest in managed funds, indices, cryptocurrency or the stock market. We prefer having direct ownership in assets that are capable of generating reliable returns that support our capacity to offer competitive interest rates to our clients.
does not have the cost base of a branch network, call centres, or public company overheads
does not have the shareholder pressures of a listed financial institution who derive substantial profits by paying their deposit holders a low return on their capital
invests in asset classes capable of generating strong double-digit returns and more
provides funding and expertise to help grow and scale businesses as this provides the opportunity to generate cash flow and capital growth from our investments
Am I eligible?
If you are a resident of Australia and have $100,000 or more, there is a high probability that you are eligible for our Fixed Income Accounts.You are not required to have a certain level of income or assets, or be classified as a 'wholesale', ‘sophisticated’ or ‘qualified’ investor to become a customer. These tests apply to companies offering funds and other financial products and services, which are distinct from Income Direct’s Fixed Income Accounts.Not sure if you are eligible? Contact our Customer Success team to see if you qualify Customer Success team to see if you qualify
What happens at the end of the term?
If you would like to have your facility repaid at maturity (i.e. the end of the term) we require 30 days’ notice in writing. This can be done via your online dashboard or by sending us written notice in the form prescribed in the agreement.Alternatively, you can leave your capital with Income Direct™ and your facility will automatically renew for a further period on the same terms as your original facility.We remind all customers that payment of principal and interest is subject to available liquidity.
Do you hold an AFSL (Australian Financial Services License) authorisation?
Yes, Income Direct is a corporate authorised representative (No. 001308591) of Hatchstone Capital Pty Ltd which holds an Australian Financial Services Licence (No. 483761).
How does Income Direct™ make money?
Income Direct’s business model is to make sound, profitable investments across a diversified portfolio of alternative asset classes. Your capital assists Income Direct™ and our corporate group to expand and optimise our commercial operations as alternative asset managers.The capital advanced to Income Direct™ from its clients can be applied to a range of commercial activities including:Funding from our clients provides us with a fixed cost of funds to carry out our commercial activities.Note: Income Direct does not engage in consumer lending, cryptocurrency investment or stockmarket day trading.
Investment (including debt and equity instruments)
Commercial lending
Re-financing
Liquidity reserves
Capital management
Operational expenses
Other commercial purposes as management deems appropriate
How is my capital protected?
When you create a facility with Income Direct™ we issue you with a bill of exchange (a globally recognised financial instrument) which recognises Income Direct’s payment obligations to you. This is accompanied by a Facility Agreement which is governed by the law of the Victoria, Australia. These documents are legally enforceable and require Income Direct™ to meet its principal and interest obligations to you or your nominated entity.Income Direct™ and its corporate group manage an underlying portfolio of assets which are well diversified to manage risk. We use diversification as our primary risk management strategy just like many of the most successful asset managers in the world.Income Direct™ has multiple potential ways of facilitating principal and interest repayments to you. These can include:Note: when Income Direct™ and its corporate group are in a growth phase, it may be that for a period capital raised from Income Direct™ clients may facilitate payments to other Income Direct™ clients. This enables our group to acquire and develop assets which can be realised over time at a future potential profit, rather than disposing of them prior to maturity. This approach is standard practice in debt-funded business operations.
Income derived from loan interest, rent, royalties and other regular payments
Income derived from the realisation of assets
Utilisation of unrealised gains to facilitate distributions
Re-financing via borrowings from third parties
Capital sourced from new clients
Capital raised from the sale of equity
Capital raised from the sale of assets
Can I use my self-managed superannuation fund (SMSF)?
Yes, we accept self-managed superannuation funds. Income Direct™ is particularly popular with clients nearing or at retirement age who manage their own superannuation fund.
Fixed Income Accounts
How do I open an Fixed Income Account?
Contact our team on 1300 798 334 or request an Info Kit to obtain a copy of the Application Form. Once you complete the Application Form and return it we can get you set up with an online account.
Is there a minimum amount?
You can open account with just $100,000 or more.Many of our customers like to start with an amount they are comfortable with to test our service and add additional amounts over time. Each additional amount is set up with its own facility agreement which specifies the term, interest rate and interest payment frequency.
Is there a maximum amount?
Whilst there is no fixed maximum, amounts of $20 million and above are by management discretion. We recommend contacting our Customer Success team if you are seeking to place this amount or greater.
How do I transfer funds to my Fixed Income Account?
You can fund your Fixed Income Account using:
BPay
Online banking
Telephone banking
Cheque - made out to ‘Income Direct Australia Pty Ltd’ and sent to:
Suite 8.04C, Level 8, 179 Queen St
Melbourne VIC 3000
Visiting your local branch
How frequently do you pay interest?
If you choose our monthly interest payment option, we pay interest to your nominated account each month by the 10th calendar day of each month.If you choose our compounded option, interest is compounded monthly and paid at maturity.
Can I view my account online?
Yes, you can login to your online dashboard 24/7 to view your Fixed Income Account balance across all your facilities.
Can I withdraw my money early if I need to?
We understand that unforeseen circumstances can occur.In the event that you need to withdraw some or all of your principal, you can submit an Early Repayment Notice. Upon receipt of your request Income Direct™ will have your principal repaid within 90 days, subject to available liquidity. Interest will stop accruing on your principal from the date the Early Payment Notice is received.
Are there any early repayment fees?
No. We do not charge a fee for customers who request early repayment.
How is the agreement structured?
Income Direct’s clients enter into a Facility Agreement with Income Direct Australia Pty Ltd for each amount they place with us.The facility is similar to a loan and is recorded pursuant to a bill of exchange. A bill of exchange is issued upon receipt of funds.The Facility Agreement is legally binding on both parties and sets out the obligations of the ‘Financier’ (you) and the Drawer (us).You can download and review the Facility Agreement in the Info Kit document
What is a bill of exchange?
A bill of exchange is an internationally recognised banking & finance instrument. It is popular with companies seeking access to credit to further their commercial operations.Section 8(1) of the Bills of Exchange Act 1909 (Cth) defines a bill of exchange as an unconditional order in writing, addressed by one person to another, signed by the person giving it, requiring the person to whom it is addressed to pay on demand, or at a fixed or determinable future time, a sum certain in money to or to the order of a specified person, or to bearer.’A physical copy of each bill of exchange is kept in secure storage by Income Direct in compliance with legislation, and an electronic copy is uploaded to your online dashboard for record-keeping.
What are the benefits of using this legal structure?
Bills of exchange have been around for centuries. They are an internationally recognised instrument in the banking system and for national and international trade.Bill of exchange are not considered financial products in various jurisdictions and are therefore not subject to the same regulatory burdens that other financial offers are.It also means Income Direct™ can be offered to a broader range of clients. There is no requirement to be a ‘qualified’, ‘wholesale’ or ‘sophisticated’ investor, or to pass an ‘income’ or ‘assets’ tests, which can otherwise limit participation in similar opportunities.
Income Direct™ vs alternatives?
How do Income Direct™ Fixed Income Accounts differ from a term deposit?
Term deposits are only offered by Authorised Deposit-taking Institutions (ADI’s). Income Direct™ is not an ADI.Term deposits are a capital-stable investment, as are Income Direct’s Fixed Income Accounts.Term deposits have a lower risk profile than Income Direct™ because they are offered by banks. They are also are covered by the Financial Claims Scheme, which doesn’t apply to Income Direct™ Fixed Income Accounts.In terms of features, both products are very similar. Customers can choose a term and how frequently they want to be paid interest. Generally speaking, longer term deposits pay higher rates of return, which is the same with Income Direct™ Fixed Income Accounts.
How do Income Direct™ Fixed Income Accounts differ from bonds?
Bonds are similar in structure to Income Direct™ Fixed Income Accounts.Bonds are a debt security. They generally involve a security interest over a particular asset, for example a property.Both bonds and Income Direct™ require principal and interest to be paid over a fixed term.Unlike bonds, the Income Direct’s underlying instrument is a bill of exchange. Both have a lender and a borrower.Both are generally capital-stable opportunities, except bonds are sometimes traded on an exchange.In terms of risk profile, both are largely dependent upon the underlying strength of the business or asset(s).
How do Income Direct™ Fixed Income Accounts differ from a mortgage fund?
Mortgage funds are generally exclusively focused on property. Whilst property can provide bricks & mortar underlying real estate as security, it involves exposure to one single asset class and often in one location or country.Income Direct™ considers real estate to be an important asset class, but prefers to have exposure across a range of others (i.e. to diversify) for risk management purposes.Mortgage funds can sometimes offer high potential returns or ‘target’ returns because the future performance of the fund is unknown. These returns are not without a degree of risk.As with any fund structure, the investment manager takes a fee generally of 1.5%-2.0% of your capital as an annual management fee regardless of performance. Whereas Income Direct™ doesn’t charge any fees.Mortgage funds also often involve unit pricing, meaning there can be variance in the value of your principal subject to the value of the underlying assets. By comparison, Income Direct™ is contractually obligated to pay you your principal and interest regardless of the performance of underlying assets.Any fund exclusively focused on one asset class should be considered as being higher up the risk spectrum due to lack of diversification.
How do Income Direct Fixed Income Accounts differ from peer-to-peer lending?
Peer-to-peer lending involves direct lending via a platform. Sometimes it is syndicated, meaning you make part of a loan with a number of other lenders.Income Direct™ is similar to peer-to-peer lending in that a form of loan is being made, however there is no intermediary with Income Direct™. You are effectively lending directly to us (just like you lend direct to a bank).The risk of peer-to-peer lending revolves around the strength and creditworthiness of the borrower. The same applies with Income Direct™.Both types of opportunities are debt financing related, meaning you can expect principal and interest payments pursuant to the agreement you enter into.Peer-to-peer lending often pays higher rates than Income Direct™ as it generally involves lending to smaller businesses or consumers who may pose a higher credit risk.
How do Income Direct™ Fixed Income Accounts differ from investing in the stockmarket?
There are substantial differences between Income Direct™ Fixed Income Accounts and investing in the stockmarket. None more so than differences in volatility.Whilst some stocks can provide an income stream from dividend payments, it comes at the risk of substantial capital volatility. Stockmarket investing can result in capital erosion as shares de-value, but also capital gains should the value of holdings increase.By comparison, Income Direct™ Fixed Income Accounts are capital-stable and suit clients seeking regular income. This helps with monthly budgeting and is a popular choice with clients who are in capital preservation mode. Those investing in the stockmarket are typically seeking to grow their principal, which is only possible with Income Direct™ if you choose our monthly compounding option.
How does Income Direct™ Fixed Income Accounts differ from investing in real estate?
Real estate has long been a popular asset class with Australian investors. It can provide substantial gains, but it can also come at the price of property maintenance headaches, challenges associated with managing tenants, council issues and potential devaluation in a backwards market.Real estate as an asset class is not as capital stable as Income Direct™ Fixed Income Accounts. Real estate can provide the opportunity to earn regular income in the form of rent but this can vary from month-to-month depending on what repairs and maintenance are required, or what fees the property manager is charging.Income Direct™ is popular with real estate investors who have sold their property and are looking for somewhere to park their funds whilst they work out what to do next. It can be a way of continuing to generate an income whilst the market corrects, or in some instances customers end up staying longer term when they realise they no longer want the headaches or volatility associated with real estate.
Risks to consider
Is Income Direct™ a bank?
Income Direct is not a bank. Our Fixed Income Accounts are not bank accounts. We offer a higher rate of return relative to bank accounts because we recognise there is an increased risk profile relative to lending money to a bank.
Is Income Direct guaranteed by the government?
No. Income Direct is not a deposit-taking institution and therefore is not covered by a Government guarantee.
What are the risks?
Relevant risks to consider include liquidity risk, principal and interest risk, general economic, related party, cybersecurity, legal, regulatory, data, currency, interest rate, political, key person, environmental, valuation, tax and general investment risk. Like most investments, principal is not guaranteed and there may be a delay in principal or interest payments. Client returns are uncorrelated to underlying investment performance.This list is not exhaustive and we recommend seeking independent financial, legal and tax advice.
Does the Financial Claims Scheme apply to Income Direct™?
No, the Financial Claims Scheme only applies to Authorised Deposit-taking Institutions (ADI’s). Income Direct™ is not an ADI.
Where does Income Direct™ sit on the risk spectrum?
We consider ourselves to be in the low-to-moderate risk category. We say this because we aren’t a bank (lower risk), we aren’t focused on volatile markets such as the stock market or cryptocurrencies (higher risk), and we aren’t single sector or single country focused (higher risk).Income Direct™ and its corporate group intentionally choose to manage a portfolio of mostly uncorrelated assets for risk management purposes. These assets are spread across different industries, countries and currencies to hedge our risk and protect our customers. We have a capable, seasoned management team, and are in-tune with investment trends to ensure we put our resources to effective use.
About Income Direct™
Who owns Income Direct™?
Income Direct™ is a wholly owned subsidiary of Marbanc International Corporation, a globally focused alternative investment conglomerate headquartered in the United States.You can learn more about Marbanc International at www.marbanc.com
Are you registered with ASIC?
Yes. Our Australian Company Number (ACN) is 667 159 480. You can verify this at asicconnect.asic.gov.au
Where can I download your Product Disclosure Statement (PDS)?
You can request a copy of Income Direct’s Information Kit and brochure from our Info Kit page.Note: the document comprehensively describes Income Direct’s Fixed Income Accounts however it is not a Product Disclosure Statement. Income Direct™ does not operate within the same regulatory framework as companies that issue PDS documents.
How does Income Direct™ make money?
Income Direct™ makes its money from profits derived from making good investments.Our business model is not dissimilar to a bank. We access capital from the public and utilise this to invest across a diverse range of assets with the objective of making a profit.What this means is that we have skin in the game as it is our balance sheet that is impacted first if an investment does not perform as expected.
Have you ever missed a payment?
Our payment obligations to customers have always been met in full.Note: past performance is not an indicator of future performance.