Unit quiz: Holding the line: pressure, over-lending, concentration and the capstone defence

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

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Question 1

A merchant whose file you are screening offers $900 cash to “make the deposits work” and says the funder will never know, because the statements will show higher volume next month anyway. What is the response?Refuse in one sentence, offer the amount the current statements support, and record the request and the refusal in a same-day written note that the merchant receives.Take no cash but submit the file with the merchant's own higher projection disclosed as a forward-looking figure, since the merchant will supply the statements next month anyway.

Question 2

A merchant with $9,400 of existing weekly obligations against $15,900 of weekly contribution asks for a new advance that would add $3,100 a week. The annual coverage would be 1.27; the recorded winter trough runs 25 percent below average. What does the file support?The requested facility, because coverage of 1.27 on the annual figure is above the house floor and the existing obligations are all current.A smaller amount or a later start: at the trough contribution falls to $11,925 and combined remittances of $12,500 give coverage of 0.95 with a shortfall of $575 a week, so the facility must be sized to the trough or deferred.

Question 3

An advisor's twelve-month placements total $2,400,000 across five pools, of which one pool is 31 percent of volume and 29 percent of commission, and four of its eleven files sit with one funder. What does the worksheet show?A pool above the advisor's own 25 percent limit and a funder sublimit breach inside it, with the pool's shared sensitivity named, so the next placement is a decision taken in advance rather than a position discovered afterwards.Specialisation in a pool the advisor knows well, which is the source of the advisor's edge and therefore not something a limit should constrain.

Question 4

A merchant whose file you decline asks for the reasons in writing and adds that he will re-apply with a different advisor next week. What does a competent decline include?A short letter confirming that the file did not meet internal standards, since internal standards are the actual reason and naming them avoids disclosing the funder's criteria.A dated decision with the specific reason in the file's figures, the documents or events that would change the answer with dates, the amount and re-application window that exist, and a statement of what you are paid and on what contingency.

Question 5

You recommend $75,000 with coverage of 1.24 on the annual average and 1.00 at the observed 19 percent seasonal dip. A reviewer argues the real dip is 31 percent. What is the correct handling?Compute the reviewer's scenario, concede it, and revise: at 31 percent coverage falls to 0.85 with a $1,467.34 weekly shortfall, and a 1.20 floor supports $22,700 at the same factor or a share-of-receipts structure, with the objection and both computations filed as a dated addendum.Retain the recommendation and note the disagreement, since the observed dip is measured evidence and the reviewer's figure is a projection about a year nobody has seen.

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