Lending Advisor

same technology used by leading banks…

Lending Advisor is bringing the same technology used by leading banks directly to borrowers, enabling better outcomes for all.

By leveraging the latest in AI and big data, together with our ability to deploy advanced systems used only by the world’s most sophisticated financial institutions until now, Lending Advisor transforms the way larger businesses and their funders interact for both origination and ongoing review and compliance.

Lending Advisor was founded by a group of bankers along with technologists from the fintech industry who saw the limited impact of recent industry innovations on the middle and corporate lending markets.

new business model for driving efficiency

There is a proliferation of tools and services for consumers and simple SME lending needs – but as soon as even a small SME borrowing need evolves past the simple one facility for one entity requirement and includes multiple products, with multiple pieces of collateral and multiple entities in a borrowing group, there was little innovation.

For large corporate lending, the process to manage a lender beauty parade, manage covenant compliance, and amend facilities is still virtually unchanged.

Our combined experience in banking and technology enables Lending Advisor to bring together technology from big lender suppliers, along with the data sources and services used by lenders now and increasingly with open banking innovation, to create a new business model for driving efficiency at all steps of the credit process.

01

Financial Statement & Credit Analysis

What?

Balance Sheet and Income Statement information on any borrower is the starting point for all credit assessment by Lenders.

Lenders

Financial Statements are a base for assessing a whole range of factors like ability to service debt, how a business is performing, and as the base for projections using future estimates. Ratios and Cashflow measures are often calculated, and these are typically used in Rating processes too.

Lending Advisor

We help by allowing this data to be entered in a typical format that lenders use, and show trends and insights that a lenders own system would identify.

02

Probability of default (pd) based rating

What?

Ratings are used by Lenders to determine the relative risk of any borrower. To calculate a rating, financial plus industry plus management data are typically assessed.

Lenders

Ratings are the basis of a range of criteria including approval authorities and pricing.

Lending Advisor

We show borrowers how a lender would rate your business, using the same probability of default driven models that lenders do.

03

Collateral

What?

Collateral, also known as Security, is often requested by lenders to reduce their risk if a borrower defaults. It can also be requested to ensure a Lender has priority over any unsecured creditors.

Lenders

Assess Collateral in different ways, and the types of collateral can have significant impacts on pricing.

Lending Advisor

Enable the ability to model the impact of including collateral in a lending request. For example, if a family home helps secure business borrowing, what impact would that have on pricing or terms and conditions?

04

Covenants

What?

Covenants include explicit reporting or compliance agreements, but can also encompass implicit factors applicable to all types of lending, like maintaining insurance on company assets.

Lenders

Covenants are usually only applied to larger borrowers, and are carefully constructed to meet borrower specific criteria. They give lenders comfort, especially when collateral is not provided.

Lending Advisor

Help identify if covenants may be appropriate, recommend a suitable level, and recommend if a borrower might gain better terms and conditions by offering to comply with them.

05

Risk based pricing

What?

Risk Based Pricing in commercial lending means every loan and borrower will potentially have a different price, affected by a wide range of factors.

Lenders

Loan pricing for lender is driven by requiring a return on capital, often determined by a borrowers rating. Cost of funds, market competition and risk appetite are also key considerations.

Lending Advisor

Let borrowers use the estimated Rating in the system, along with their loan characteristics and collateral structures, to calculate the likely margin a lender will charge for their loan, or loans.

06

Documentation

What?

Documentation includes both documents provided as evidentiary support, and documents that can be generated based on data already entered.

Lenders

Before a loan is approved, confirmation of facts by way of documentation is often required. In some cases, Lending Advisor can source documents directly and store them for use by multiple lenders, thereby saving on cost.

Lending Advisor

Allow borrowers to choose to share documents with lenders and generate a range of standard documents necessary for their transaction for extra efficiency.

07

Limit management

What?

Limit management is the process of assessing the size of a borrowers credit limits across all their banking product needs.

Lenders

The size of a borrowing relationship can drive different approval processes for a lender so it is important to understand the total limits based on all products from credit cards to mortgages to overdrafts.

Lending Advisor

Helps assess the total limit of a borrower, including the borrowings of associated entities or guarantors which may impact transaction assessment.

08

Grouping and profiling

What?

Understanding who the borrower is, and who is in the broader lending group associated with the borrower is a critical aspect of commercial lending. This will also affect the type of assessment undertaken which can be driven by demographics, like industry.

Lenders

When lending to different industries, lenders will often undertake analysis specific to particular criteria. Understanding all the entities in a borrowing group and their activities is a key first step.

Lending Advisor

Captures the full range of entities in a borrowing group, building an organisational chart for ease of identification and capturing profile data.

get your best yes. now.

Take control of your lending relationships by being better informed about your risk and return profile. The Lending Advisor platform has been built to bank standards across both operations and data security.