Complex Lending and Broking Assessment


Added on  2022-11-30

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Complex Lending and Broking
Student identification(student to complete)
Please complete the fields shaded grey.
Written Assessment result (assessor to complete)
Result — first submission
Parts that must be resubmitted
Result — resubmission (if applicable) 2,3
Result summary(assessor to complete)
First submission Resubmission (if required) Resubmission (if required)
Task 1
Task 2
Task 3
Task 4
Task 5
Feedback(assessor to complete)
To finalise this assessment you need to revisit the above tasks and resubmit for further assessment.
Assessment should be in your own words , so should not need references
Please use a different colour for your additional work and leave the assessor comments and gradings intact
Comments on resubmission.
Need to follow assessor comments exactly and very closely and then submit again for assessment. Please ensure every aspect
requested is addressed
Complex Lending and Broking Assessment_1

Before you begin
Read everything in this document before you start your written assessment for the Complex Lending and
Broking (DIPMB2_AS_v3) subject.
About this document
This document is the written assessment and includes the following:
Instructions for completing and submitting this writtenassessment
Section 1: Case Study A – Ray Murdoch and Steve Brown – Commercial Equipment Finance
Task 1a –Identify the clients’ complex broking needs
Task 2a – Develop complex broking options
Task 3a – Implement complex loan structures
Task 4a- Detailing analysis findings
Section 2: Case Study B – Bill Smith and John Jones – Commercial Premises Finance
Task 1b – Identify the clients’ complex broking needs
Task 2b – Prepare complex broking options
Task 3b – Implement complex loan structures
Task 4b–Detailing analysis findings
Section 3: Improving practice performance
Task 5–Develop, research and monitor plans to improve performance
How to use the study plan
We recommend that you use the study plan for this subject to help you manage your time to complete the
written assessment within your enrolment period. Your study plan is in the KapLearnComplex Lending and
Broking (DIPMB2v3) subject room.
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Complex Lending and Broking Assessment_2

Instructions for completing and submitting this written
Saving your work
Download this document to your desktop, type your answers in the spaces provided and save your work
Use the template provided, as other formats will not be accepted for this written assessment.
Name your file as follows: Studentnumber_SubjectCode_Assessment_versionnumber_Submissionnumber
(e.g. 12345678_DIPMB2_AS_v3_Submission1).
Include your student ID on the first page of the writtenassessment.
Before you submit your work, please do a spell check and proofread your work to ensure that everything is
clear and unambiguous.
The written assessment
The information and data you need to complete this written assessment is presented in the case studies at
the beginning of each task.
This written assessment covers complex lending and broking and requires you to answer the questions for
Section one (1)or Section two (2)and Section 3. Each case study focuses on a different lending scenario.
Word count
The word count shown with each question is indicative only. You will not be penalised for exceeding the
suggested word count. Please do not include additional information which is outside the scope of the
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Complex Lending and Broking Assessment_3

Additional research
When completing this assessment, assumptions are permitted although they must not be in conflict with
the information provided in the Case Studies.
You may also be required to source additional information from other organisations in the finance industry
to find the right products or services to meet your client’s requirements, or to calculate any service fees
that may be applicable.
Submitting the written assessment
Only Microsoft Office compatible written assessments submitted in the template file will be accepted for
marking by Kaplan Professional Education. You need to save and submit this entire document.
Do not remove any sections of the document.
Do not save your completed written assessment as a PDF.
The written assessment must be completed before submitting it to Kaplan Professional Education.
Incomplete written assessments will be returned to you unmarked.
The maximum file size is 20MB for the written assessment. Once you submit your written assessment for
marking you will be unable to make any further changes to it.
You are able to submit your written assessment earlier than the deadline if you are confident you have
completed all parts and have prepared a quality submission.
Please refer to the Assessment submission/resubmission instructions (pdf) in the Assessment section of
KapLearn for details on how to submit your written assessment.
Your written assessmentmust be submitted on or before your due date. Please check KapLearn for the
due date.
The written assessment marking process
You have 12 weeks from the date of your enrolment in this subject to submit your completed assessment.
If you reach the end of your initial enrolment period and have been deemed Not Yet Competent in one or
more assessment items, then an additional 4 weeks will be granted, provided you attempted all assessment
tasks during the initial enrolment period.
Your assessor will mark your written assessment and return it to you in the Complex Lending and Broking
(DIPMB2v3)subject room in KapLearn under the ‘Assessment’ tab.
Make a reasonable attempt
You must demonstrate that you have made a reasonable attempt to answer all of the questions in
your written assessment. Failure to do so will mean that your assessment will not be accepted for marking;
therefore you will not receive the benefit of feedback on your submission.
If you do not meet these requirements, you will be notified. You will then have until your submission
deadline to submit your completed written assessment.
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Complex Lending and Broking Assessment_4

How your written assessment is graded
Assessment tasks are used to determine your ‘competence’ in demonstrating the required knowledge
and/or skills for each subject. As a result, you will be graded as either competent or not yet competent.
Your assessor will follow the below process when marking your written assessment:
Assess your responses to each question, and sub-parts if applicable, and then determine whether you
have demonstrated competence in each question.
Determine if, on a holistic basis, your responses to the questions have demonstrated overall competence.
You must be deemed competent in all assessment items in order to be awarded your qualification,
including demonstrating competency in:
all of the exam questions
the written assessment.
‘Not yet demonstrated’ and resubmissions
Should sections of your assessment be marked as ‘Not yet demonstrated’ you will be given an additional
opportunity to amend your responses so that you can demonstrate your competency to the required level.
You must address the assessor’s feedback in your amended responses. You only need amend those sections
where the assessor has determined you are ‘Not yet demonstrated’.
Make changes to your original submission. Use a different text colour for your resubmission. Your assessor
will be in a better position to gauge the quality and nature of your changes. Ensure you leave your first
assessor’s comments in your assessment, so your second assessor can see the instructions that were
originally provided for you. Do not change any comments made by a Kaplan assessor.
Units of competency
This written assessment is your opportunity to demonstrate your competency against these units:
Unit code Unit name DIPMB2 Complex
Lending and Broking
DIPMB3 Business
Management Skills
FNSFMB502 Identify and develop broking options for clients with
complex needs Started Completed
FNSFMB503 Present broking options to clients with complex needs Started Completed
FNSFMB504 Implement complex loan structures Started Completed
FNSCUS501 Develop and nurture relationships with clients, other
professionals and third party referrers Started Completed
FNSPRM602 Improve the practice Started Completed
Note that the written assessment is required to meet the requirements of the units of competency.
We are here to help
If you have any questions about this written assessment you can post your query at the ‘Ask your Tutor’
forum in your subject room. You can expect an answer within 24 hours of your posting from one of our
technical advisers or student support staff.
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Complex Lending and Broking Assessment_5

Section 1: Case study A — Ray Murdoch and Steve Brown –
Commercial Equipment Finance
Note: You only need to complete Section 1 or Section 2 tasks 1-4 in this assessment, plus Section 3 task 5.
You have just met with Ray Murdoch and Steve Brown, referred to you by another commercial client.
Ray Murdoch and Steve Brown jointly own a successful and growing business that manufactures metal
pallets. They trade under the name Pallets-R-Us Pty Ltd. The pallets are manufactured using material that
is lightweight and durable. There has also been a very structured approach to the research and
development for the engineering and design of the pallets. The pallets are used in all industry sectors. Part
of the process involves powder coating the finished product, which is currently outsourced to a local well-
established contractor.
It is critical that Ray and Steve’s product meets market needs. They need to maintain sustainable
production and operating costs if they are to forecast their sales and cost of sales.
They have a well-established client database that provides them with repeat ‘business-to-business’
dealings. Whilethey have only been trading for 30 months, they have a solid business plan with written
supply contracts with three major business clients and several smaller business clients.
Ray and Steve now require finance to assist them with the purchase of a sophisticated machine that uses
the technical platform system CNC. This machine can be programmed to rapidly fabricate multiple
components. The machine has an expected commercial lifespan of at least 15 years with operating
software to be updated every three years. This software and upgrades is included in the purchase price of
$800,000.They will haveto import the machine from the US. Initial enquiries with the US supplier have
indicated that they will require a letter of credit for the import of the machine. Once the machine has
arrived and installed on the premises the letter of credit will be replaced with an asset lease. The asset
lease requested by the borrowers will be for a seven-year term with a residual of 15%.
Their business employs five people and, with the expected increase in business through the automation
of production, they have forecast that they will need to recruit an additional two staff members in the next
3–6 months to meet sales/production demands.
Ray has been in the metal fabrication field all his working life. He has an MBA and understands financial
management. He also has solid engineering skills and developed the majority of the design works for the
business. He is divorced and has no dependants. Steve is married and his wife is a school teacher and she
will be retiring at the end of the year.
Steve worked with Ray at ‘Protech’ as a foreman. His skills are in production and managing project/job
flow. He has high level technical skills and can complete works to specification at a high standard.
Steve and Ray have provided the last two years financial accounts for the trading business, as well as
interim accounts for the current financial year. Ray’s brother provided business with a loan $500,000 when
the business commenced and he is being repaid interest plus a principle repayment of $30,000 per annum.
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Complex Lending and Broking Assessment_6

Applicant information
Client Ray Murdoch Steve Brown
Current address: Unit 43, 25 High St Northville, <Your State>and
has lived there for six years
23 Desmond Lane Northville, <Your State> and has lived
there with Kate for seven years. They own property jointly.
Home phone: 9001 2121 9002 1212
Status Ray is divorced with no dependent age children Steve is married with no dependents
Employment Self-employed business owner Self-employed business owner
Income $100,000 per annum $100,000
Property value $750,000 $900,000
Cash at bank $12,500 $9,600
Contents $100,000 $85,000
Superannuation $250,000 Steve $350,000, Kate $60,000
Motor vehicle $40,000 $55,000
Home loan $250,000 repayments $2,068p.m.,P & I, 18 years
$350,000 repayments $2,645 p.m.,P & I, 22 years remaining
Credit card $25,000 limit with debt of $15,000, monthly
payment calculated @3% of limit
$10,000 limit with debt of $3,000, monthly payment
calculated @3% of limit
Car loan $0 $15,000 repayment $746p.m., remaining term 4 years
The business
Year 1 net profit after tax $200,000
Year 2 net profit after tax $220,000
Current year interim profit (10 months trading) $200,000
Wages to partner 1 – years 1 and 2 $100,000
Wages to partner 2 – years 1 and 2 $100,000
Principal repayment to Ray’s brother repaid annually $30,000
ABN: 64-123-123-123
Business name: Pallets-R-Us
Pty Ltd
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Complex Lending and Broking Assessment_7

Key balance sheet items
Cash $25,000
Trade Debtors $220,000
Trade Creditors $100,000
Notes The business currently meets all creditor payments at 30-day terms.
Debtor collection has been solid. They invoice an upfront payment of 50% of the sale price, which assists in
funding their production.
They have orders of $1m over the next 3 months and have made an increase in their gross profit margin.
The orders are from several clients, so their debtors will be well spread.
Outstanding balance on loan from brother $440,000.
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Complex Lending and Broking Assessment_8

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