How a private lender assesses business loan applications
New business loan applications being worked through at the office table: a file geared near the top of the band and carried by its exit, security spread across four regional titles, and a file at the large end going to the other decision-makers rather than to a decline.
Three files, three judgements
The recording shows new applications being worked through at the office table. It is not a scorecard being run; each decision is a judgement a bank's process cannot make.
- Gearing near the top of the band, carried by the exit. The first file is geared close to the ceiling for its security type and is approved because the exit is good. The band today is up to 80% on residential security and 70% on commercial.
- Security spread across several titles in a regional centre. Neither the number of titles nor the location is an exception in itself.
- A file at the large end goes to the other decision-makers, rather than to a decline.
Every decision is made by a person, in-house, which is why it can weigh gearing and exit together rather than one after the other.
The video is the short version. The written guide has the detail: private lenders in Australia, and how to tell them apart.
To talk it through about your own property, ring a Lending Manager on 1300 93 83 87, Mon–Fri, 8:30am – 5:30pm Melbourne time.
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Reviewed by Jason Brockmuller, Joint Chief Executive