Diploma provides tools for success

Brokers can learn to write complex commercial loans

Diploma provides tools for success

There is nothing more enjoyable than watching a client grow their business.

Even better if your business is growing along with them. As their financial structures become more complex and the deal sizes grow, the Commercial and Asset Finance FNS51820 Diploma of Financial Services (Complex Issues in Commercial Lending) gives you the knowledge and the confidence to deliver. It’s a great learning tool divided into six modules which, once completed, will arm you for success.

Developed by the Institute of Strategic Management (ISM), which has a long history of delivering specialised content to the financial services sector, including both banking and finance broking, the Diploma of Financial Services (Complex Issues in Commercial Lending) is endorsed by the national peak professional body of the commercial and asset finance industry, the Commercial & Asset Finance Brokers of Australia (CAFBA).

This is your “how to” for writing larger, more complex transactions.

Read more: Certificate IV opens door to commercial lending

Course Structure:

The Commercial and Asset Finance Diploma of Financial Services (Complex Issues in Commercial Lending)

Divided into six modules, the coursework provides the knowledge needed to broker the financial products your growing clients will require.

Module One: Introduction

This Module provides an introduction and overview of the commercial and asset finance market along with some information already provided in the Certificate IV Commercial and Asset Finance course.

If you have completed the Certificate IV course, you may wish to move directly to the assessment for this module or you may like to review and reflect on the material.

By completing the module, participants will be able to:

  • Explain the range of categories of the equipment and commercial finance market
  • Discuss in detail the way in which various product options are presented to the client
  • Outline the key legislation and compliance that affects a finance


Module Two: Structuring the Credit Application

The core of complex commercial and asset finance is the credit application or memorandum. This module sets out the information necessary to build the application and gives an excellent example of a complete application.

By completing the module, participants will be able to:

  • Explain the steps the underwriter will go through to assess moderately complex credit applications
  • List the information required by the underwriter to assess each aspect of the client’s business
  • Explain the various forms of security that can be taken to support the credit application
  • Outline the structure of information that will be provided in the credit application

Module Three: Assessing the Credit Application

Once the process of collecting the client data (including financial statements, assets and liabilities, cash flows and tax returns) is complete, this module will provide you with the skill to understand and leverage a framework for analysing the client’s needs.

The four steps covered are:

  • Industry Analysis
  • Business Analysis
  • Financial Analysis
  • Security Analysis

A compelling credit application sets out for the underwriter the risks involved in the above steps and provides a detailed analysis in order to present and argue the mitigants of these risks.

Module Four: Ethics in Financial Services Part 1

This module outlines the skills and knowledge required to identify situations requiring complex ethical decision making in a variety of industries and organisational settings.

By the end of this module participants will know:

  • How to identify ethical principles
  • How to apply ethical frameworks in the workplace
  • How to analyse legal and organisational protection that apply to ethical decision making

Module Four: Ethics in Financial Services Part 2

Module four covers how brokers can frame the complex ethical question to address the situation in the best and most suitable way.

By the end of this module participants will know:

  • How to frame the ethical question applicable to the situation
  • How to determine the appropriate response to an ethical situation
  • Develop an implementation plan and carry out ethical response to the situation
  • Evaluate the outcome of the ethical response

Module Five: Grow Financial Practices

Commercial and asset broking requires a professional approach that includes good business and operational planning.

Read more: How to help clients with cash flow management

This module looks at how to develop a sound promotional plan for business growth. If you own your own practice, your finance provider (that is, the institution that will provide you with the loan to cover your working capital needs) will expect to see a professional plan that outlines the way in which you will achieve your business objectives.

These objectives must include how and when you will repay any borrowings, as well as when additional funds are needed should the business expand and require extra working capital.

This module has been developed to support your learning in a self-directed learning environment. The activities in the program are designed to provide you with feedback on your learning progress.

Module Six: Risk and Compliance

This module is aimed at developing important competencies (skills and knowledge) that will be a significant step in gaining understanding and recognition within the financial management sector.

An important part of credit management is understanding risk: both the client’s risk and your risk as a credit manager. These units specifically look at defining risk and the process of managing risk. You will gather information about the organisation’s industry and business environments and reflect on the importance of consulting with stakeholders.

It is also important that you are aware of the different types of risk; this module focuses on the four types of risk commonly encountered: financial, economic, physical and legal risks. You will consider how these risks are assessed and monitored to protect an organisation from adverse effects.

Finally these units highlight the importance of identifying and assessing controls that can be put in place to minimise risk. You will be introduced to control evaluation and risk mapping so that you can ensure maximum protection from the risks you have identified.

Through education comes the power to grow

Through education comes power, the power to help fund businesses to boom, fuelling the economy.

Education that further professionalises the commercial and asset finance industry and ensures we maintain the high standards and quality we are so proud to have achieved.

To launch your career or grow your business, go to FNS51820 Diploma of Financial Services

This article was supplied by CAFBA