Lending Advisor

Time to get the

best Yes.

A next generation origination channel enabling Lenders to efficiently access opportunities based on highly targeted risk appetite criteria.

Efficient Origination

Receive deals digitally, with complete and analysed data straight to your own lending platform. Significant cost savings are delivered in seeing only qualified transactions, data capture, and rework minimisation

Risk Models

Lending Advisor uses advanced probability of default (PD) risk models to give borrowers an idea of their relative risk and return. Lenders can also apply their own PD (or Loss Given Default) models with data delivered via an API for real time calculation.

Risk Appetite

Only see deals that match your organisational risk appetite. This can be specified at highly granular levels across a range of criteria like segment, risk (PD and LGD), size, and industry.

Ongoing Compliance

Lending Advisor includes an ability to manage ongoing information requirements around terms and conditions or covenant compliance, continuing the platforms’ value of brining efficiency to your lending business and delivering an easier, more engaging experience for borrowers.

complete commercial origination capability

Borrowers and Brokers will have access to the tools needed for segment specific credit submissions to be prepared with the complete data set and analytic tools lenders apply in their own businesses

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.

For who?

Check out some use cases

Manufacturing company
Retail shop
Property Developer

Needs:

Complex including working capital and equipment finance. Plus term lending for a related entity that owns the factory property.

How we Help:

Lending Advisor enables the full borrowing group to be understood, and enables multiple lenders to be identified, a traditional bank for the working capital, a captive finance lessor for the equipment and a specialist fund focussed on property lending only for the factory loan. Each lender was competitive for their particular segment, and an overall interest expense savings delivered to the group.

Using Lending Advisor enabled the group to apply to these multiple Lenders in a single, easy transaction using common application forms and structure terms and conditions to deliver the best cost of funds.

Needs:

Family owned retailer, where the owners have a mortgage over their primary residence in their own name. In the business name there is a Term Loan for the property where the shop is located, and an overdraft for stock. The owners also guarantee the loans of the business, which were put in place five years ago.

How we Help:

Since the original lending was provided, the value of the two properties (owners house and the retail store) have both increased, and the loans themselves have reduced. Owners are keen to understand if they could separate their family home from supporting the business borrowings.

Using Lending Advisor, the impact on Pricing and terms by changing the collateral structure was able to be understood before approaching lenders. Borrowers discovered that there was sufficient Collateral to release the family home from the business borrowings, but that there would be an added interest expense to do that.

Needs:

An entity established to purchase a piece of property and develop a number of townhouses on the site.

How we Help:

Lending Advisor has a Property Development specific capability that captures the data and cashflows a lender needs to make a credit decision. By structuring the data in a format that lenders look for, the Developer is able to identify the key risks that need to be mitigated and ensure they are properly structured.

Lending Advisor is able to optimise the structure of the transaction across mezzanine and senior lenders over the life of the development, and forward the application to the group of lenders that are interested in that specific development profile. Complementary terms and conditions are agreed, with the best weighted average cost of funds for the developer.

get your best yes. now.

Stronger lending relationships are built when both borrowers and lenders are on the same page about risk and return. Lending Advisor helps lenders build portfolios and work with the best clients.