Banking & Lending
Make smarter borrowing and lending decisions with structured financial models. Loan structuring, serviceability analysis, covenant tracking, and credit risk assessment.
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Whether you are seeking finance for growth, managing an existing debt portfolio, or assessing credit risk, the quality of your financial model can make the difference between approval and rejection - or between a good deal and a great one.
We build banking and lending models that help borrowers present compelling cases to lenders and help lenders assess credit risk rigorously. Our models incorporate loan structuring, serviceability calculations, covenant tracking, and sensitivity analysis so you understand the full picture before signing on the dotted line.
From small business loan applications to complex debt capital structures, we give you the financial rigour that lenders respect and decision-makers rely on.
What a banking & lending model gives you
Loan Structuring & Serviceability
Model different loan structures - principal and interest, interest-only, offset accounts - and assess serviceability under various interest rate scenarios.
Debt Covenant Modelling
Build models that track and forecast debt covenant compliance. See how changes in earnings, leverage, or interest rates affect your headroom under loan agreements.
Credit Risk & Rating Analysis
Analyse credit risk using structured frameworks. Model probability of default, loss given default, and expected credit loss for informed lending or borrowing decisions.
Interest Rate Sensitivity & Refinancing
Run scenario analysis to see how rising or falling rates affect your cash flows. Evaluate refinancing options and compare loan terms side by side.
Common use cases
- Borrowers preparing loan applications with robust financial models and forecasts
- Mortgage brokers assessing serviceability and structuring loans for clients
- CFOs and finance managers managing debt covenants and reporting to lenders
- Businesses evaluating refinancing options and comparing loan structures
Frequently asked questions
What is loan serviceability analysis?
Loan serviceability analysis assesses a borrower's ability to meet debt repayments from income and cash flow, usually measured through debt service coverage ratios and lender stress tests. It is the core of most commercial loan approvals in Australia.
What is a three-way financial model?
A three-way financial model integrates the profit and loss statement, balance sheet, and cash flow statement so that every assumption flows consistently across all three. Because the three statements are linked, the model always balances and produces reliable projections for lenders and investors.
Why does the balance sheet need to balance?
The balance sheet must balance because every transaction has offsetting entries: assets always equal liabilities plus equity. In a financial model, a balanced balance sheet confirms that the P&L, cash flow, and balance sheet are consistent, which is the key integrity check on any lending model.
What are debt covenants and why do they matter?
Debt covenants are conditions lenders impose on borrowers, such as minimum liquidity, maximum gearing, or specific debt service coverage levels. Covenant tracking models monitor these ratios against limits so borrowers can see a breach coming and act before lenders do.
How do lenders assess credit risk?
Lenders assess credit risk through serviceability, security, historical performance, and forward-looking cash flow projections. Structured models quantify each of these so borrowers, brokers, and lenders can agree on facility structures based on evidence rather than opinion.
How is loan structuring different from loan approval?
Loan structuring designs the facility itself: tranches, terms, security, covenants, and repayment profiles matched to the borrower's cash flow. Approval decides whether to lend; structuring decides how the facility is built to manage risk for both parties.
Need help with a loan or lending model?
From loan structuring and serviceability to covenant tracking and credit risk - we build models that help you borrow smarter and lend with confidence.
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