FNSFMB504: Analyzing and Implementing Complex Loan Structures

This assignment solution for FNSFMB504 delves into the complexities of loan structures, encompassing various aspects such as relevant legislation, client situations, and security types. It examines commercial loans, chattel leases, and native title rights, alongside heritage issues and contaminated sites. The document explores the implications of different securities, including multiple securities, specialized securities like hotels, and forms of security like rental income assignments and multiple mortgages. It also covers client needs, prioritization of actions, and implementation strategies, emphasizing time management, monitoring procedures, and instructions to personnel. Furthermore, it outlines relevant fees and charges, along with documentation requirements, providing a comprehensive analysis of complex loan structures and their practical implementation.

FNSFMB504
IMPLEMENT
COMPLEX LOAN
STRUCTURES
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TABLE OF CONTENT
Written Activities.............................................................................................................................4
Relative Legislation.....................................................................................................................4
Complex Features of a Client Situation and Needs.....................................................................4
Complex Nature of Securities to be taken...................................................................................5
Forms of Security to be taken for Complex Loan Structures......................................................6
Written Activity Checklist...............................................................................................................7
Complex feature of at least one client situation...........................................................................7
Prioritisation of actions, planning and other activities................................................................7
Explanation of implication of actions of clients..........................................................................8
Implementation of actions using timing and priority..................................................................8
Relevant personal and briefing them...........................................................................................8
Implementation of actions depending on involved actions.........................................................8
Monitoring procedures.................................................................................................................8
Briefing the client on the bases of undertaken actions................................................................8
Instructions to internal and external personal on the bases of loan structure..............................9
Joint implementation...................................................................................................................9
Process the fees and charges........................................................................................................9
Post-implementation....................................................................................................................9
Complex features.........................................................................................................................9
Security take for complex loan structure...................................................................................10
Key features of legislations relevant to task completion...........................................................10
Time management techniques and tools used...........................................................................10
Third party checklist......................................................................................................................10
Three time management techniques suitable for process..........................................................11
Importance of establishing monitoring procedures...................................................................12
Actions which can be undertaken for implementations.............................................................12
Assistance provided to client.....................................................................................................12
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Internal and external personnel to issue instructions.................................................................12
Circumstances in which consultation and monitoring is required from other professionals.....12
Types of fees and charges..........................................................................................................12
Range of factors to be discussed................................................................................................13
Process outline...........................................................................................................................13
Documentation required............................................................................................................13
REFERENCE................................................................................................................................15
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Written Activities
Relative Legislation
Bounce Bank Loan Scheme (BBLS), Corona-virus Business Interruption Loan Scheme
(CBILS) and Corona-virus Large Business Interruption Loa Scheme (CLBILS). These are the
some of the widely being used business loan approaches which are being developed by the
governments by which it can ensure that it is being able to provide a strong financial growth to
the business to maintain their operations.
This is an important stage for the corporate because of the fact that with this approach it can
ensure that it is being able to take suitable steps by which higher work productivity is being
achieved. It is also important for the corporate that proper charges and taxes are being fulfilled,
by which suitable steps can be taken by which all the legal legislations are being fulfilled (Willis
and Simcock, 2019). With this approach chances of facing governmental penalties are being
reduced.
Complex Features of a Client Situation and Needs
Commercial loan- Commercial loans are the type of loans which are being taken for performing
business activities and these are often being taken for short period of time, than compared to
domestic loans. Since commercial loans are being taken to perform business activities, due to
which different type of interest rates are also being introduced. Since this type of leans are often
being taken by entrepreneurs and pre-established businesses for performing and implementing
innovative approaches due to which these are often in large amounts and are having high
associative risk of failures therefore, specific assets are being taken as a assurance through which
return of investment can be assured.
Chattel leases- It is the type of loan which is being taken by the individuals for the fulfilment of
their regular use requirements. In this type assets are been take on lease for a fix interval of time
and schedule financial investments are being. In this type of loans the borrower often tends to
take financial amount through which it can take an asset on lease for fulfilling its requirements
(Ryder, 2018). These type of leases are often taken for medium rage to high range amount and
are often been repaid within a short span of time and due to which high interest rates are
established through which high profit margin can be accomplished.
Native title rights- This type of rights is consist of several basic rights which are required by the
individuals to achieve a healthy lifestyle. Therefore in this type of requirements financial loans
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are being given in the form of basic limit within which the expenditures have to be made. After
the completion of the limit the credit limit implements and this can be seen in the cases in which
the individuals are being provided with credit cards. Through which they can take suitable steps
for fulfilling their requirements and this becomes significant because with this approach overall
desired target is being achieved.
Heritage issues- This is the type of issues are being faced because since in the current time the
overall number of customers are increasing with the globalization. Therefore because of this
modernised approaches are being used than compared to traditional approaches for work
implementation (Nosratabadi, 2020). Due to this the modern approaches are often being used,
therefore because of this traditional approaches are not often being used. This can also be seen in
the case in which individuals tends to make several efforts by which modern approaches are
being implemented.
Contaminated sites or properties near noxious industries- This is the approach in which the
banks have to ensure that all the basic governmental criteria are being followed. This is
necessary because as per the legal legislations the development of noxious industries near the
industrial areas is being prohibited. Therefore because of this approach the banks have to
properly check the legal documents of the borrower through which it tend to ensure that all the
governmental developed criteria are being fulfilled. With this approach the chances of facing
governmental actions can be minimized and desired return of investment can be achieved as per
the criteria.
Complex Nature of Securities to be taken
Implications of borrowing against premises of lease- Borrowing is the traditional approach in
which the asset is casually being shared among the involved parties and is also not being
properly being documented. Therefore the overall revenue collection is being limited among the
involved parties while also in case of false usage the owner is having complete liability. Whereas
in case of lease a proper documentation is being performed through which a clear differentiation
is being achieved (Mumford, 2019). This is an important stage because with this approach it is
being analysed that the responsibilities for facing the failures is being divided and legal actions
can be taken accordingly in case of misuse of the property.
Different kind of multiple security- Securities are of various types and this include cyber
security in which the critical information is being secured through various type of cyber attacks.
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This include security through malware, ransom ware and many more, with this the overall
protection of the organizational data which is being established on the cloud platform is being
accomplished. Whereas other type of securities are related to the security through tangible
products which include steps like theft and many more. Therefore in order to protect the
corporate with the following approaches several technologically advancements are being used by
which suitable steps can be taken to achieve higher work productivity.
Specialised security (such as hotel)- Hotel are widely being known for their hospitality services
which they provide to the customers and therefore since it tends to provide its services to a large
number of customer base. Due to this it has to take suitable steps by which higher work
productivity is being accomplished. This also becomes significant because of the fact that with
this approach the chances of facing document leaks can be reduced and with this approach
overall high work productivity can be accomplished (McMahon, 2021).
Forms of Security to be taken for Complex Loan Structures
The assignment of rental income to the lender- This is the basic criteria in which the lender is
responsible for fulfilled all the governmental criteria which it can ensure that it is being able to
take suitable steps by which all the governmental criteria are being fulfilled. This can be seen in
the case in which the entrepreneur of SME often have to rent to perform business activities and
due to this all the lease based legislations have to be fulfilled.
Joint and several personal or related company guarantees- There are several situations in
which the individuals have to perform joint accounts by which it can distribute the overall
liability of the account activities. Therefore in such cases a proper documentation of the
documents and the overall associated relation of the involved parties is highly important for the
corporate. This happens because with this approach it can be ensured that suitable measures can
be taken accordingly by which higher work productivity can be accomplished.
Multiple mortgages- This is the organizational approach in which the singly bank account is
having multiple capital transactions and this can be seen in the case of businesses in which
businesses are having several departments in which large rapid transactions are often being
performed. This is an important stage because companies have to ensure that it is being able to
take suitable measures by which higher work productivity can be achieved.
Registered company charges- Entrepreneur is responsible for establishing an organization for
performing business activities by which it can ensure that it is being able to take suitable
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measures to achieve strong economic growth. Since a high investment of capital amount is
required due to this it often take start-up loans, thus in this approach the business has to ensure
that it is being able to take suitable measures. Through this its requirements can be fulfilled,
therefore in this approach the company has to check the registration fee which is being paid by
the corporate (Lee and Brierley, 2017).
Second mortgages- This is the type of account operation in which the overall financial
transactions are being paid through the means of multiple partner account in which join accounts
are being developed. With this approach the company can ensure that it is being able to take
suitable steps by which both the associated partner are being able to gain the direct access of the
account by which their overall requirements can be fulfilled.
Involvement of unit or family trust as guarantors or borrowers- Several approaches have to
be taken in order to achieve full security of having return of financial amounts which are being
given to the individuals. In this approach a guarantor is being held responsible for returning the
loan in case if the borrower is not able to repay the debts.
Written Activity Checklist
Complex feature of at least one client situation
The client is responsible for taking a high amount of financial debts and because of this there are
several associated challenges which are being faced by the clients in order to repay the financial
debts which it has taken. This include complexity like various types of instalment plans and this
happens because of the fact that clients take financial loans due to several situations (Kopaczyk,
2017). Therefore because of this approach various instalments plans have to be provided to the
clients, so that they can choose the plan which is most appropriate for them as per their
requirements.
Prioritisation of actions, planning and other activities
The banks tend to provide wide range of financial loan options to the customers and
therefore because of this approach several approaches which has to be followed by the
corporation because with this approach it can ensure that it is being able to take suitable steps by
which higher work productivity can be achieved. It is an important steps because a clear
understanding about the organizational offering is highly necessary for the corporate
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Explanation of implication of actions of clients
This is an important stage which has to be fulfilled by the corporate because of the fact that
with this approach it can take suitable measures by which it can take appropriate measures.
Through which suitable steps can be taken by which higher work productivity can be
accomplished. This is an important stage in which all the associated required actions of the
clients are being taken into consideration and then suitable measures can be taken to achieve a
higher work productivity.
Implementation of actions using timing and priority
By developing the time frames clients can also be provided an proper understanding about the
suitable steps which have to be taken (Henry and et.al, 2017). Through which the clients is being
provided an opportunity to maintain its expenditures such that loan can be repaid as per the
schedule.
Relevant personal and briefing them
Entrepreneurs are responsible for establishing an business and due to which they are being
chosen for providing briefing. Since commercial loans are being required by the client and due to
which the total final amount is being showcased to the borrower and then various type of
instalments are being showcased.
Implementation of actions depending on involved actions
There are several responsible associated professionals which have to be provided with
proper understanding about the type of plan being used chosen by the buyer. These professionals
comprises of senior employees and brand managers which are responsible for documenting the
loan procedures.
Monitoring procedures
The overall loan process can properly be monitored by documenting the number of
instalments which are being submitted by the borrower, in order to repay its debts. There are
several monitoring methods which can be used in order to monitor the loan process, in that
instalment segregation in terms of segregating principle amount and interest amount is mostly
used.
Briefing the client on the bases of undertaken actions
In the introductory stage the overall loan amount is being identified, then the different type
of instalments plans are being showcased in context with the changing interest rates as well.
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With this approach the client is being empowered to choose the desired return plan as per its
requirements, while showcasing the required documents as well.
Instructions to internal and external personal on the bases of loan structure
Once the client has chosen loan amount then the external bank units are being provided
instructions to make financial fund transactions to the customers. While also at the same time it
has to guarantee that it is being able to take suitable steps, through this customer requirements
can be met, while internal is responsible for managing the cash flow.
Joint implementation
Providing financial loans to customers require large amount of critical documentation and
due to which join implementations are being implemented by which the overall authenticity of
the documentation of the client can be ensured. This can also be used for performing several
activities in which the scheduled monitoring of the loan amount is also being analysed.
Process the fees and charges
There are several documentations which are to be provided by the client at the initial stage, but
once the client is able to repay the debts then for the future transactions the amount of
documentation is low (Eisenberg-Guyot and et.al, 2018). Therefore in the early stage file charges
have to be paid by the customers, then in the future transactions is not being taken.
Post-implementation
This is the final stage in which the clients has completed the overall documentation and
then arises, this stage in which the overall working of the loan amount is being showcased. In
this stage as well a proper guidance over the number of investments and amount to be paid is
being evaluated.
Complex features
Commercial loans- Commercial loans have to be given to the entrepreneurs at an high interest
rates by which high return of investment can be accomplished. In order to provide proper
commercial funds a large number of documents have to be submitted this includes documents
like Financial account, Business Bank Statement, VAT returns, Proof of ID and address. With
this proper documents the loan provider can ensure the overall authenticity of the borrower and
can take legal actions as well if the borrower is not able to repay the debts.
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Security take for complex loan structure
Involvement of family trust as either borrower or guarantors, the family members and
friends are often being taken as the granter that the borrower is able to repay the debts. This is an
important stage for the corporate because of the fact that if the borrower is not able to repay the
debts then the company can regain its investments through the guarantee.
Key features of legislations relevant to task completion
There are a set of legal legislations which has to be fulfilled by the borrower and the
money lender. This includes the steps like providing a proper receipt for the instalments which
are being paid and also a proper legal documentation of guarantee which is being taken.
Time management techniques and tools used
There are several approaches by which the overall loan amount can be properly scheduled,
through this appropriate measure can be taken by which proper interest rate can be set
accordingly (Curtin, McInerney and Johannsdottir, 2018). This include steps like Leverage
automation, create adhering schedule. This is also an important stage because with this approach
various type of instalment plans are being developed.
Third party checklist
1. There are various complexes or salient features of the client situation and needs. These
include commercial loans (carried out between the business and the financial institution or
bank), native title rights (traditional rights and the interest in the waters and land if
Aboriginal and Torres Strait Islander people), chattel leases (common way to borrow funds
for purchasing movable personal property such as car), heritage issues (preserving the sites
which are culturally important to the government), contaminated sites (polluted sites),
properties near noxious industries (expensive cleaning of these sites) and many more (Cheng
and et.al., 2019).
2. The things which are needed to be considered to prioritise the implementation actions
include collecting all the actions, identify the important v/s urgent tasks, assessing the value,
ordering the tasks by estimating the efforts needed, being adaptable and flexible and
knowing when to cut. Priority matrix can also be used by taking all the tasks and assigning
each of them a priority on the basis of priority matrix.
3. There is a need of various informations which are needed for deciding the scheduling and
timing of the implementation actions. These include identifying the tasks which are required
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to achieve the objective. This includes capital requirement, key human resources, budget,
training plans etc. Then this is followed by defining time and resources for each. The costs
are then estimated and defined and then the scheduling is done (Mota, Moreira and Brandão,
2018).
4. The requirements include the benefits which can be faced by the client include the division
of problems, laws associated with the actions and the related solutions and the possible
future of the actions which are need to be taken.
5. The information used to gain written contract from the clients include contact information of
both parties, payment terms, setting the schedule, taking decision after the termination of
contract, determining the owner of the final copyrights etc.
6. This must be in terms of recovering of loan, relaxation of time to the loan borrowers. This
can help in providing advantage to some extent to the client.
7. The need is to focus on matter of value of the mortgage against the amount which is
provided. The originality of documents is to be considered for getting back the invested
amount.
8. These documents involve computerised or manual application, disclaimers, disclosures,
insurance information documents, written suggestions and receipts, current existing loan
documents etc.
9. The external documents include the government rules and regulations and many other
constitutional documents. Complex loans can be got by making use of all these documents
(Santos, Mendes-Da-Silva and Gonzalez, 2018).
10. For operating the loan providing operations, this is required for assessing the matter of
specifying the actions regarding the matter to maintain the rules and regulations of the
processes of the different businesses. In order to recover the lending money, this is the
responsibility of the loan providing company to take various actions regarding the specific
rules and regulations of the government.
Three time management techniques suitable for process
There are various time management techniques which can be used by the businesses and this
include steps like checking the cash flow and then prioritising the tasks on the basic of their
significance the lender in terms of financial returns.
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Importance of establishing monitoring procedures
Money lender often tends to provide loans to a wide range of borrowers and due to which it
is highly important for the corporate that it is being able to take suitable steps by which overall
financial transactions can be documented, for identifying the profit achieved through interest
rates.
Actions which can be undertaken for implementations
The set of actions which have to be followed in order to brief the clients about the loan
process and this include steps like establishing a proper bi-directional communication in which
overall requirements are being analysed. While also with that all the required set of plans can
also being provided through temples.
Assistance provided to client
It is highly important that the client is having a proper understanding about the
organizational offering and due to this all the various plans can be explained through paper and
by proving the detailed information through texts or emails by which the client can efficiently
understand.
Internal and external personnel to issue instructions
There are several associated individuals who have to be provided a proper understanding and this
include individuals like clients, branch manager, financer, lawyer and an consultant through
which the customers can establish a proper communication (Bolton, 2019). This is done because
a hierarchical structure is being established to manage the overall offering.
Circumstances in which consultation and monitoring is required from other professionals
There are various situations which has to be faced and this include issues like the borrower
is not able to repay the debts which it has taken. Therefore because of this approach suitable
measures have to be taken, through this suitable measures can be taken to achieve the overall
financial debts which it has taken.
Types of fees and charges
There are several type of fees which has to be paid by the borrower in order to take the financial
loans and this include steps like documentation charges in which the all the documents which are
being provided by the borrower are being analysed and receipts are being generated for
implementing fund transfer (Addis and Kutar, 2018).
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