Lesson 1Bank versus non-bank lending compromises: approval strictness, paperwork, approval pace, and adaptabilityContrast banks and non-bank lenders on approval strictness, paperwork, pricing, approval speed, and adaptability, to direct clients to the best match for their needs and risk comfort.
Paperwork depth and verificationCredit criteria strictness and allowancesApproval pace and funding schedulesPricing, charges, and relationship benefitsAdaptability in design and conditionsLesson 2How to present loan choices to business owners in straightforward language and outline risks and expensesBuild skills to describe loan designs, expenses, and risks plainly, with comparisons, visuals, and notices that aid owners in grasping compromises and deciding confidently.
Converting jargon to straightforward languageExplaining effective rate, charges, and total expenseDescribing early repayments and penaltiesClarifying personal risk and assurancesEmploying comparisons and basic visualsLesson 3Designing working capital arrangements: duration, repayment, interest-only phases, balloon payments and condition examplesLearn to craft working capital arrangements, including duration, repayment, interest-only phases, balloons, and conditions, matching repayments to cash flows while safeguarding lender and borrower interests.
Matching duration to cash cycleRepayment schedules and choicesInterest-only and escalating structuresBalloon payments and refinancing hazardsTypical financial and reporting conditionsLesson 4SBA-equivalent programmes: eligibility, application steps, guarantee design, approval schedules and pros/consGrasp main government-backed small business programmes, eligibility, guarantees, charges, timelines, and pros/cons, to spot when these are ideal for New Zealand small business clients.
Overview of key programmesEligibility rules and excluded usesGuarantee design and lender protectionApplication steps and timelinesPros, cons, and frequent issuesLesson 5Common small business loan varieties: term loans, credit lines, government-backed, merchant advances, invoice funding, and online short-term loansExamine primary small business loan types, from term loans and credit lines to government schemes, merchant advances, invoice funding, and online short-term options, matching each to needs and risk levels.
Term loans and equipment fundingRevolving credit line basicsGovernment-backed loan applicationsMerchant advances outlinedInvoice and receivables fundingOnline short-term working capitalLesson 6Online and alternative lenders: pace, usual rates, charges, and typical borrower types servedExplore online and alternative lender operations, funding speed, pricing, charges, risk tolerance, and targeted borrowers, to responsibly suggest these for clients.
Funding pace and application processesUsual effective rate ranges, charges, and extrasRisk models and data usedIdeal borrower types and applicationsWarning signs and exploitative designsLesson 7Personal versus business credit: when personal assurances required and consequencesClarify personal and business credit differences, assurance requirements, evaluations, and legal, financial, relationship impacts for owners and co-signers.
Business credit reports and scoresPersonal credit elements lenders checkWhen assurances usually neededAssurance designs and exclusionsDefault effects on assurersLesson 8Standard approval criteria for business loans: business duration, turnover, cash flow, debt service coverage ratio (DSCR) and securityReview core approval criteria for business loans, like business duration, turnover, cash flow, DSCR, security, and sector risk, and how lenders balance positives and negatives.
Business duration and stability checksTurnover size, trends, and seasonal factorsCash flow coverage and DSCR checksSecurity valuation and prioritySector, management, and integrityLesson 9Risk pricing and interest-rate influencers for small business loans (credit risk, duration, security, sector)Understand lender pricing of small business credit, with risk levels, duration, security, sector, and market factors driving rates, charges, and conditions across products.
Risk levels and pricing frameworksDuration and return expectationsSecurity quality and loan-to-valueSector risk and cycle effectsMarket standards and rivalryLesson 10Reviewing business financial reports: profit & loss, balance sheet, cash flow reports and key ratios for repayment capacityLearn reading profit and loss, balance sheet, cash flow reports, computing key ratios, and trend interpretation to assess repayment ability and spot issues pre-submission.
Reading the profit and loss reportKey balance sheet items for lendersCash flow report and adjustmentsCore ratios: DSCR, gearing, liquidityTrend review and adjustments
