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Clawback is the repayment of upfront commission when a loan is discharged early, typically within the first two years on a reducing scale set by each lender and aggregator agreement. You reduce it...
Traditional lenders rarely fund startups without security, because there is no trading history to assess and no asset to recover. Realistic options are asset-specific finance, revenue-based facilit...
Lenders treat bonus, commission and overtime as variable income and use only a portion of it - commonly shading it to a share of the average over one to two years. The percentage used varies by len...
Responsible lending obligations under the NCCP Act require a lender or broker to make reasonable inquiries about your circumstances, verify them, and assess whether the credit is unsuitable. The Ro...
Broker unit economics come down to one number: contribution per settlement, which is revenue per deal - upfront plus the present value of trail, less expected clawback - minus your fully loaded cos...
Automation has moved deepest into document processing, income verification and fraud detection, where it is fast and uncontroversial. It has moved more slowly into the credit decision itself, becau...
Agricultural lending is structured around seasons rather than months. Income arrives in concentrated bursts after harvest or sale, so facilities are built to fund inputs upfront and repay at income...
Lenders assess casual, contract and gig income more conservatively than salaried income because it is less certain. Most require a minimum period in the same role or industry - commonly six to twel...
The Financial Claims Scheme is an Australian Government guarantee protecting deposits up to $250,000 per account holder per authorised deposit-taking institution, activated if an ADI fails. The lim...
A stress test asks whether a bank would still have adequate capital after a severe but plausible downturn - typically a combination of sharp property price falls, rising unemployment and higher los...
A broker capturing an enquiry is collecting personal information and, once credit is involved, credit-related information governed by Part IIIA of the Privacy Act. You need a collection notice at t...
Lenders model prepayment because it determines how long their loans actually last, which drives funding, hedging and profitability. In Australia the picture is complicated by offset accounts and re...
