THE STORY
What the broker brought, how the credit analyst read it, and what settled
01 · The challenge
A family trust that already owned several trading businesses sought funding to acquire a wholesaling business from vendors who were retiring. The obstacle was not performance, it was legibility. The applicants’ group structure ran across multiple entities carrying both personal and business debt, with commitments interrelated between them. Each business was meeting its own obligations, but assembling a single coherent servicing picture across the whole group was difficult, and a consolidated view risked counting obligations against an acquisition that had nothing to do with them.
02 · How VMG assessed it
Human underwriting narrowed the question rather than widening it. Credit assessed the new borrowing on the vendor’s financial statements alone, isolating the wholesaling business being purchased from the applicants’ existing operations. Dividends of $100,000 that the vendors had previously treated as part of their wages were added back, which gave a truer picture of what the business actually earned. Because the existing personal and business debts were demonstrably being serviced by the entities responsible for them, those commitments were not brought into the assessment of the new $605,000 facility.
03 · The outcome
VMG settled the $605,000 acquisition and the trust completed the purchase. Assessing the target business on its own numbers, rather than attempting to model an entire group in one calculation, was what made the file workable.
THE TURNAROUND
The same file, before the refinance and at settlement.
BEFORE VMG
AFTER SETTLEMENT
💡THE VMG COMMON-SENSE ADVANTAGE
HOW IT WAS ASSESSED
Every file is read by a credit analyst, not scored by a system. There is no credit scoring, and no DTI or DSR ratio applied. The product and the terms depend on the individual file, so talk to your BDM about where a similar scenario fits.
Test the scenario with VMG credit before you lodge. VMG lends only through accredited mortgage brokers.
Related
QUESTIONS
All applications are subject to Victorian Mortgage Group’s standard credit assessment and lending criteria. Terms, conditions, costs and charges apply. This article is general information only and does not take into account your objectives, financial situation or needs.
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