Finance Loan Application for Glossy White Pty Ltd

This finance loan application is for Glossy White Pty Ltd, a painting company that is looking to expand their business and purchase additional plants and equipment. The loan amount required is $350,000 with principle and interest with a fixed interest rate of 6.45%. The security offered is their house that is valued at $1 million. The SWOT analysis, financial ratios, and loan application notes are also included.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Covering Letter................................................................................................................................3
Client Need and Review Fact Form.................................................................................................4
Objective..........................................................................................................................................5
Option for the loan...........................................................................................................................6
Loan Application Notes...................................................................................................................7
Detail of the Applicant.................................................................................................................8
Purpose of the loan......................................................................................................................8
Security Offered...........................................................................................................................9
Amount of loan required..............................................................................................................9
Management................................................................................................................................9
Business.......................................................................................................................................9
SWOT Analysis.........................................................................................................................10
Financial Ratios.........................................................................................................................11
Cash Flow..................................................................................................................................12
Explanation of the variances......................................................................................................13
Credit Proposal Disclosure............................................................................................................13
Preliminary Assessment Checklist................................................................................................14
Credit Quote...................................................................................................................................15
Bibliography..................................................................................................................................17

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Covering Letter
To Jason and Rebecca White
7 Park Lane, Suburb, State Postcode
Dear Jason and Rebecca,
This letter has been forwarded to in order to show my appreciation and gratitude for thinking
about me for taking assistance regarding the consultation regarding the refinancing or the
restructuring of the loan. I am glad about the fact that the offering of undertaking the meeting has
been accepted on your part as it is seen that face to face meeting provides better communication
and understanding of the desires that are seen from our end and accordingly appropriate options
can be provided with the help of which the option that is suitable for you can be provided and
accordingly all your goals and objectives can be met.
I hope the options and the recommendations that would be given to you would be able to meet
your goals and desires and accordingly i can come to your assistance in the coming future as
well.
Regards
Bill Cooper
Financial Consultant

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Client Need and Review Fact Form
This fact form comprises of the questions that would be asked to the client regarding the reason
for taking financial assistance. There are several questions that are asked and they have been
listed as follows:
Q1. Why have you come to see me today?
Q2. Kindly outline the reasons for looking for taking the advice
Q3. Are there any distinct issues that are of specific significance to you?
Q4. Briefly explain your past experiences with taking loans
Q5. Briefly detail your past experiences with Financial Planning.
Q6. What are your expectations of our services?
Private Consent Form
“I understand that in signing this document I am providing the permission to my financial
adviser, to gather and keep on file personal data that I have provided to him. I understand that
this personal data may include but is not limited to: “
a) Any income tax information;
b) Account statements from other firms, including banks, trust companies or fund companies;
c) Pension plan information

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d) Legal documents including wills, trusts and powers of attorney; and
e) Copies of identification including photo identification and banking information.
“I understand that my advisor may use and disclose this information to:
• Communicate with me in a timely and efficient manner;
• Assess my application for investment, insurance and other services available to me by his firm;
• Assess my financial situation and contact me with any other suitable products
I understand that I possess certain rights related to my privacy:
I have the right to know why a company gathers, utilises or discloses my personal data
I have the right to expect the company to manage my information in a reasonable manner and to
not make use of it for any other intentions without my permission
I have the right to expect the company to safeguard my data from unauthorized exposure
Objective
In order to provide the effective consultation, it is essential to understand the objectives
of the client. In this respect, it is seen that the couple have a business of their own and are
looking to expand their business in order to increase their sales and even increase their market
share. They have two dependent children and they are looking to provide them with proper
education in order to establish them. The couple own the business in partnership and has been
looking to increase their business. The couple are even looking to invest the money that is
present in the self managed fund in order to gain certain amount of income out of it with the help
of which the couple can make plans for their retirement and can gain sufficient amount of money

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that would be ideal for maintaining their current standard of living even after retirement and is
able even able to keep a certain percentage of money for their children. The couple even needs to
purchase certain insurances with the help of which they can safeguard their life from any kind of
unprecedented events. The main aim of the couple is to restructure their loan with the help of
which they would be able to undertake further investments that would be able to increase their
level of income.
Option for the loan
There are several options that are available to the couple but the option that has been
taken into consideration would be able to satisfy the goals and the objectives of the client. The
issues that are related to the client have been addressed and according to the issues that have
been specified, I feel the loan should be taken as a plant and equipment loan. The main reason
for taking the loan on the basis of a plant and equipment loan has been due to the fact that the
their company has recently received a contract to pain 30 stores of a supermarket chain for which
they would be paid $25,000 per shop and the entire work needs to be completed within 2 years.
In order to do so they are in need of new painters and machines with the work would be done
faster and accordingly they would be able to finish off the job within the desired deadline. The
application of the loan on the basis of the plant and equipment would be ideal as they would be
able to show the documents of their contract the bank officials with the help of which they would
be able to receive the permission for the loan. The couple can even invest the money that they
have in their self managed super fund in their business activities with the help of which they
would able to purchase the equipments they desire and thereby increase their business and the
return on the investment received from the invested would be brought back into the self managed
fund and thereby there would be a rise in their income as income would from the investment

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would be received from their company which would reduce their overall external risk related to
investment.
In order to apply for the loan the loan application form has to be filled and this is done in
the following manner.
COMPLEX LOAN DOCUMENT CHECKLIST
(PEV) Plant, equipment and vehicle loan application
Data required
Enclosed?
Y N
Assessment cover sheet  ☐
This checklist  ☐
Credit Guide including Authorised Credit Representative’s details*  ☐
Privacy Statement and Consent Form *  ☐
Client Needs Review/Fact Find*  ☐
Combined Credit Quote and Proposal* OR Statement of Credit Advice*  ☐
Cash Flow Forecast*  ☐
Loan Serviceability evidence  ☐
Evidence of current or other lenders’ loan arrangements ☐ 
☐
Evidence of Income (BAS If required) ☐ 
☐
Copies of last two years’ Financial Statements and Tax Returns (Business and personal) ☐ 
☐
Evidence of written contracts  ☐
Fully completed Lender Loan Application*  ☐
Notes to Lender detailing your comments on the client background and requirements including:
 Reasons for variances in the last two years’ financial statements
 A SWOT analysis
 Financial ratio analyses including Current ratio, Quick ratio, Debt ratio and Equity ratio
 ☐
Lender’s Loan Document Checklist (Normally forms part of loan application)  ☐
Anti-Money Laundering/Counter Terrorism Financing ID requirements *  ☐
Copy of Business Registration & Constitution and/or Trust Deed  ☐
Copy of Broking Commission Tax Invoice ☐ 
☐
Copy of Offer to Purchase / Supplier’s Invoice (Showing serial numbers etc. to identify goods)  ☐
Copy of Broking Commission Tax Invoice  ☐

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Loan Application Notes
Loan Application for Glossy White Pty Ltd
Detail of the Applicant
The applicants are Mr Jason and Rebecca White who are the joint owners of Glossy
White Pty Ltd, which is painting company and has been operational from the year 2000. The
company has been doing pretty well and Rebecca has recently completed her degree on interior
deigning and therefore would be of assistance and support for the development of the firm. On
the other hand, Jason is a skilled painter. The business has been operating in an effective manner
as it is seen that they have been able to make significant amount of profit with the help of which
they are able to pay off their balance in the loan fund effectively and even make savings in their
self managed super fund. The company is looking to expand their business and therefore would
be in need of additional plant and equipment with the help of which they can operate their
business in a better way. They have several projects in their hand but recently has received a
huge contract from a supermarket chain where they have been given the contract of painting their
30 stores all over Australia. The loan that is applied for will be used for the expansion of their
business with the help of which the company would be able to purchase new and improved tools
and equipments that would improve their level of work.
Purpose of the loan
The main purpose of the loan has been to expand their business and purchase additional
plants and equipment with the help of which they would be able to render better and effective
services. The money that has been requested for will be used for the purpose of buying the new
hydraulic scissor lift with cage and even a trailer. The money would even be used for the purpose

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of renovating their office and even for making of the painters who would be appointed for the
purpose of completing the contract within the desired date of 2 years.
Security Offered
As a security for the loan the clients would be offering their house that is their own even
though the house is under loan and the value pending is $360,000, the recent appraisal of the
house has determined the fact that house has a current market value of $1 million and this money
would be adequate for the purpose of the security for the loan that is applied for.
Amount of loan required
The amount of loan that is required for the purpose of installation of the new plant and
machines has been $ 350,000 and the rest of the money would paid by the company from their
own. The overall loan amount is $350,000 with principle and interest with a fixed interest rate of
6.45%.
Management
Mr Jason White is the owner of the business and handles all the operations. He is an
experienced painter and has extensive knowledge on this line and therefore manages all the
activities of the business by himself. The other joint owner is his wife Mrs. Rebecca White who
has recently completed her interior designer course and has become competent enough in order
to manage and control the business activities with her husband.
Business
There are several plans for the development of the business. The owners have decided to
expand their business and have the plan of opening up several branches in the several states of
Australia. They even have the plan of staring a new service line of providing interior service and

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consultation as well as Rebecca has attained the experience that is required to start this kind of
business. The business is at the developing part as slowly the business is capturing the market
and has the aim of becoming the leader in their services within their location and thereafter
spread their business country wide.
SWOT Analysis
Strength
 Strong management system
 Quality
 Location
 Financial leverage
 Innovative and new culture within the work environment
 Experience in the industry
 Supply chain
 Customer loyalty
 Cost advantages
Weakness
 Number of employees
 Online presence
 Insufficient capital
Opportunities
 New market

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 New products
 Innovation
 International expansion
 New services
 New technologies
Threats
 Changes in the tastes of the customers
 Volatile costs
 Government regulations
 Competition in the market
Financial Ratios
Liquidity Ratios:
Particulars` 20XX 20XW 20XV
Current Assets A 38797 37541 38487
Current Liabilities B 26259 22501 21021
Inventory C 4324 5874 7546
Prepayments & Other Assets D 0 0 0
Cash & Cash equivalents E 28278 21544 21985
Current Ratio F=A/B 1.48 1.67 1.83
Quick Ratio
G=(A-C-
D)/B 1.31 1.41 1.47
Cash Ratio H=E/B 1.08 0.96 1.05
Financial Leverage Ratio:
Particulars` 20XX 20XW 20XV
Total Assets A 141779 162452 181678
Total Equity B 75800 87077 94180

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Total Liabilities C 65979 75375 87498
Debt-to-Equity Ratio D=C/B 0.87 0.87 0.93
Debt Ratio E=C/A 0.47 0.46 0.48
Equity Ratio F=B/A 0.53 0.54 0.52
Cash Flow
Projected Cash Flow
Particulars 20XY 20XZ
Cash Inflow
Painting Income
$522,665.0
0 $616,508.00
Salary of Director
$190,000.0
0 $150,000.00
Income from the Contract
$187,500.0
0 $187,500.00
Rent from the plants $795.00 $6,225.00
Total Cash Inflow
$900,960.0
0 $960,233.00
Cash Outflow
Accountancy $4,380.00 $2,180.00
Insurance Payments $10,208.00 $911.00
Wages
$195,000.0
0 $195,000.00
Utilities $3,801.00 $3,915.03
Car Running Expenses $5,200.00 $5,356.00
Entertainment $0.00 $610.00
Travelling expenses $100.00 $103.00
Work related expenses (Tax
deductible) $2,500.00 $2,575.00

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Total Cash outflow
$221,189.0
0 $210,650.03
Cash generated
$415,000.0
0 $749,582.97
Opening Balance $0.00 $415,000.00
Closing balance
$415,000.0
0
$1,164,582.9
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Explanation of the variances
The variances that have been discovered in the financial statements is mainly due to the
external factors that are existent in the market and changes in the rates of interest. It is even seen
that there has been a drastic change in the net profit as the company in the previous year was not
performing effectively as new employees were recruited who were under training but now they
are competent employees and therefore the business has been performing effectively and has
been able to capture its market share and accordingly has been able to develop their business as
well as their profits.
Credit Proposal Disclosure
Licensee Paul Walker
72, WWW Street NSW-727428
Australian Credit License Number- 37723
Ph No- 041475869
Broker Group Finance and Mortgage Group
Proposed Application for the following credit Application Name-
Purpose-

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Application Type-
Credit Provider or Lessor:
Fee type Initial fee Initial fee paid to
licensee
Initial fee paid to
adviser
SOA fee
$2,000 2,000 500
Implementation
fee
$6,000 6,000 1500
Ongoing advice
fee*
$2,000 2000 1000
Total
10,000 10,000 3,000
Preliminary Assessment Checklist

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Credit Quote
Client name:
Credit
Representative
Joseph Charles
Corporate Credit
Representative
Expose Group
Credit Representative Number: 397554

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Licensee Paul Walker
72, WWW Street NSW-727428
Australian Credit License Number- 37723
Ph No- 041475869
Broker Group Finance and Mortgage Group
SIGNED……………………………………………………………
Date…………/…………/………………

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Bibliography
Cummings, J.R. and Durrani, K.J., 2016. Effect of the Basel Accord capital requirements on the
loan-loss provisioning practices of Australian banks. Journal of Banking & Finance, 67, pp.23-
36.
Gavalas, D., 2015. How do banks perform under Basel III? Tracing lending rates and loan
quantity. Journal of Economics and Business, 81, pp.21-37.
Xia, Y., Liu, C. and Liu, N., 2017. Cost-sensitive boosted tree for loan evaluation in peer-to-peer
lending. Electronic Commerce Research and Applications, 24, pp.30-49.
Zhao, F. and Moser, J., 2017. Bank lending and interest-rate derivatives. International Journal of
Financial Research, 8(4), p.23.