Disciplined credit.
Responsible capital.
Commercial and property credit instruments, secured lending strategies and disciplined commercial debt portfolio management.
Our Credit Policy Manual Framework introduces the oversight principles applicable to commercial property-backed credit instruments, credit administration and commercial debt portfolios. Detailed policy settings and operating procedures remain confidential.
Credit quality begins before a facility is approved.
Commercial credit is more than the pricing of risk. It requires understanding the borrower, the commercial purpose, the asset, the proposed security, the wider transaction and the practical pathway to repayment.
Debtequity's framework approach is designed to inform structured assessment and responsible capital decisions. It recognises that non-standard transactions demand careful analysis, not weaker discipline.
Our objective is to support commercially workable capital arrangements while preserving clarity of responsibilities, documentation, oversight and downside protections.
Six pillars of responsible commercial credit.
These headings describe the public architecture of the framework. They do not disclose internal underwriting rules, decision limits or investment criteria.
Borrower & Purpose
Understanding the borrower, commercial proposition, repayment rationale and relevant stakeholders.
Security & Structure
Considering the proposed collateral, security position, facility purpose and transaction architecture.
Capacity & Repayment
Examining commercial cash flow, liquidity, repayment sources and the viability of the proposed exit.
Approval & Accountability
Clear responsibility for review, authorisation, documentation and management of conflicts.
Monitoring & Reporting
Ongoing attention to material developments, compliance obligations and reporting against the mandate.
Resolution & Recovery
Early engagement and structured management of deteriorating exposures and emerging repayment risks.
Capital preservation before return ambition.
Downside analysis before approval.
Documented governance before execution.
Active oversight through repayment or resolution.
From initial assessment to managed exit.
Credit governance should remain active throughout the life of a commercial facility, not end at settlement.
Understand
Clarify commercial purpose, borrower circumstances, security proposition and mandate suitability.
Assess
Undertake proportionate due diligence and document the principal risks and mitigants.
Govern
Apply relevant approval requirements, document responsibilities and arrange facility controls.
Oversee
Monitor the exposure and manage the repayment, refinance, release or recovery pathway.
Transparency on principles. Protection of proprietary methods.
It is possible to explain how credit risk is governed without placing a firm's internal decision architecture in the public domain.
Public framework
Credit philosophy, high-level governance pillars, risk oversight, general lifecycle management and the nature of commercial mortgage capabilities.
Controlled internal manual
Detailed policy rules, credit evaluation methodologies, approval authorities, quantitative limits, exception treatments, portfolio controls, internal reporting and proprietary procedures. These are not published on this page.
The application of any credit framework is subject to the relevant legal entity, investment or lending mandate, executed documents, approvals and applicable regulatory requirements.
Commercial & property credit instruments.
Instrument selection and security arrangements should match asset performance, funding purpose, risk capacity and realistic repayment sources. These categories describe potential areas of review, not a representation that any facility or service is available or approved.
Senior commercial mortgages
First-ranking, property-secured facilities considered against cash flow, valuation, asset quality, security position and verified repayment sources.
Bridging & transitional credit
Time-bound capital for asset acquisition, refinancing, settlement, repositioning and other identifiable commercial transitions.
Construction & development facilities
Staged advances linked to planning status, project delivery, verified budgets, independent professional oversight and exit strategy.
Subordinated & structured credit
Second-ranking, mezzanine or layered debt exposures considered subject to intercreditor rights, cash flow capacity, ranking and mandate suitability.
Commercial receivables & asset-backed facilities
Appropriate funding structures supported by eligible collateral, receivables, equipment or business assets, with eligibility, concentration and recoverability assessment.
Distressed debt & loan portfolios
Assessment of seasoned, non-performing or impaired commercial loan portfolios, including title, documentation, servicing transfer, recoveries and acquisition economics.
From individual loans to actively governed portfolios.
Portfolio governance addresses credit risk after origination, including asset quality, payment performance, maturity exposure, security condition and recovery options.
Portfolio onboarding & validation
Loan tape reconciliation, legal rights, account histories, collateral documents, borrower status, data integrity and mandate boundaries.
Servicing & performance monitoring
Repayment monitoring, arrears, maturities, financial covenants, concentrations, borrower engagement and periodic portfolio reporting.
Arrears & early intervention
Risk migration, payment arrangements, borrower rehabilitation, escalation, forbearance decisions and documented action plans.
Restructuring & workout
Commercial restructures, refinance pathways, consensual exits and coordinated legal, insolvency or security enforcement where authorised.
Portfolio acquisition & disposal
Due diligence, recovery-case modelling, transfer mechanics, pricing discipline, concentration review and exit alternatives.
Capital & stakeholder reporting
Exposure and performance reporting, material risk movements, liquidity needs, recoveries and accountability to relevant mandate stakeholders.
Explore the disciplines behind responsible commercial credit.
Fourteen governance subject areas outline how commercial and property-backed credit instruments and managed commercial debt portfolios may be approached. Select any section to explore its purpose, principal considerations and intended governance outcome. This is a proposed public schedule, not a verified extract of the confidential manual or a representation of formal policy adoption.
Hover over a chapter to reveal the high-level commentary. On touch devices, tap to open.
01Purpose, application & document governanceGovernance foundation
Defines why a credit policy exists and how its application remains consistent across commercial lending and managed debt mandates.
Clarifies the relevant activity, accountable policy owner, governance review cycle and separation between public framework statements and confidential operating standards.
A controlled and reviewable policy environment, without implying that the public framework itself is the adopted manual.
02Entity, mandate & regulatory perimeterLegal and mandate boundaries
Distinguishes the responsibilities of a lender, arranger, investment manager, trustee, servicer and security holder.
Considers the legal identity of the contracting party, documented mandate powers, permitted activities, required authorisations and the purpose of the underlying credit.
No assumed authority: each instrument or portfolio is governed by its own legally effective mandate and applicable requirements.
03Credit appetite & permitted instrumentsInstrument suitability
Frames the commercial rationale for property mortgages, bridging loans, structured credit and asset-backed or acquired debt exposures.
Examines borrower purpose, transaction structure, collateral characteristics, concentration, repayment profile and fit with available capital.
Instrument selection follows mandate suitability and risk assessment rather than demand for yield or loan volume.
04Borrower, sponsor & related-party assessmentCounterparty quality
Evaluates the commercial parties on whom repayment, delivery and conduct depend.
Considers beneficial ownership, financial capacity, cash generation, relevant experience, group dependencies, connected exposures and material conflicts.
A documented picture of who bears the obligations, who controls execution and where the principal counterparty risks arise.
05Property, collateral & security assessmentAsset protection
Assesses how real property and other pledged assets support the proposed credit exposure.
Addresses independent valuation requirements, title and encumbrances, security ranking, enforceability, insurance, asset condition and the practical implications of recovery.
Security quality is distinguished from borrower cash flow; neither is treated as a complete substitute for the other.
06Transaction economics & repayment analysisCash flow and exit
Tests whether the facility economics and intended repayment pathway are commercially supportable.
Reviews purpose and application of funds, cash-flow resilience, debt service, refinancing assumptions, sponsor liquidity, maturity alignment and plausible downside scenarios.
Credit conclusions reflect a credible primary repayment source and a considered fallback pathway.
07Development & construction creditExecution exposure
Addresses additional risks that arise where security value depends on planning, delivery or completion.
Examines approvals, independently reviewed budgets, contractor and supply-chain capability, delivery sequencing, contingency provision, progress evidence and stabilisation assumptions.
Construction exposure is evaluated as a continuing execution risk, not merely as a property valuation.
08Credit submission, decisions & exceptionsDecision integrity
Sets the governance expectation for a traceable credit recommendation and defensible decision.
Requires clear presentation of material facts, assumptions, identified risks, mitigants, relevant authorisations and any departures from applicable internal standards.
Risk acceptance and exceptions are visible to authorised decision-makers and documented in the controlled record.
09Documentation, settlement & advancesFunding discipline
Links approved commercial terms to enforceable documentation and disciplined release of capital.
Covers loan and security documentation, completion of relevant pre-funding requirements, security registration, drawdown evidence and settlement responsibilities.
Advances follow confirmed prerequisites and documented authority rather than informal commercial expectation.
10Loan administration & ongoing monitoringActive loan stewardship
Recognises that credit quality can change after settlement and requires continuing oversight.
Addresses repayment processing, maturity forecasts, covenant reporting, updated borrower information, arrears signals, asset events and borrower engagement.
Emerging issues are identified, recorded and escalated while there remains scope for an orderly response.
11Portfolio limits, reporting & risk surveillanceWhole-of-book exposure
Moves beyond transaction-by-transaction assessments to consider portfolio-wide resilience.
Examines sector and borrower concentrations, security types, maturity bunching, geographic exposure, performance migration, liquidity and relevant stress cases.
Mandate stakeholders receive decision-useful visibility over aggregate exposures, material changes and downside risk.
12Loan trading, distressed assets & recoveriesAcquired and impaired credit
Frames acquired loans and distressed positions as distinct investments with transfer, information and recovery risks.
Considers data quality, legal title and assignment, underlying borrower rights, security perfection, collections conduct, recovery costs, timing, valuation uncertainty and alternative exits.
Acquisition or workout decisions account for recoverability, execution cost, legal rights and conduct obligations—not headline face value alone.
13Conflicts, outsourcing & third-party oversightIndependent oversight
Addresses relationships that can influence credit decisions, borrower treatment, valuation and servicing activity.
Considers related-party transactions, independence of professional opinions, service-provider scope, monitoring obligations, escalation channels and accountability.
Delegation or outsourcing does not obscure who remains responsible under the relevant engagement or mandate.
14Compliance, records & audit readinessEvidence and assurance
Supports lawful administration and the ability to reconstruct decisions and material credit events.
Considers applicable privacy, financial-crime, licensing and conduct obligations, document retention, access controls, review evidence and independent assurance where appropriate.
A consistent evidentiary trail that supports governance, oversight and appropriate external review.
Commercial credit restructuring & debt workouts.
Outcome-focused assistance for commercial credit departments, special-assets teams, secured financiers and borrowers facing deteriorating credit conditions. Debtequity approaches each mandate as a credit and capital decision: how best to protect exposure, establish repayment capacity, preserve recoverable value and deliver a defensible financial outcome.
Credit triage & exposure assessment
Understand total exposure, arrears, obligor and guarantor capacity, collateral ranking, security position, near-term liquidity, maturities and the causes of financial stress.
Borrower viability & repayment reset
Examine sustainable operating cash flow, debt service capacity and practical refinancing or amortisation options. Separate a viable borrower needing time or capital from an unsustainable credit position.
Workout versus enforcement economics
Compare recoveries net of time, enforcement expense, holding costs, asset-value erosion, priority claims and execution uncertainty. Avoid relying solely on headline security valuations.
Credit restructure & forbearance
Consider controlled maturity extensions, repayment resets, staged deleveraging, additional collateral, limited standstill arrangements, equity injections and milestone-linked concessions where justified.
New-money & capital stack solutions
Assess fresh equity, replacement debt, working-capital lines, receivables finance or property-backed capital, subject to documented priority, funding certainty, lender consent and supportable repayment.
Stressed portfolio management
Support segmentation, servicing, concentration management, arrears intervention, hold-versus-sell analysis, loan-book transfers and orderly exits for performing and non-performing commercial exposures.
For commercial credit & special-assets teams
Debtequity can assist credit decision-makers to develop evidence-based alternatives to an immediate enforcement pathway, within the lender's retained approval authority.
- Exposure and security position reconciliation
- Credible 13-week cash-flow and repayment analysis where appropriate
- Base, downside and enforcement recovery comparisons
- Restructure terms, additional capital and borrower milestones
- Decision-ready submissions, monitoring and escalation reporting
For commercial borrowers & asset owners
We seek workable solutions that address the lender's credit concerns, not requests for indefinite indulgence. Business continuity must be earned through evidence, credible capital and delivery discipline.
- Identify and address drivers of the credit deterioration
- Stabilise cash flow, working capital and operating commitments
- Develop a lender-facing repayment or refinance plan
- Assess collateral releases, orderly asset sales and capital injections
- Agree measurable milestones and transparent lender updates
Credit decision test: restructure, hold, sell or enforce?
Compare the expected net present, risk-adjusted recovery under each executable pathway: consensual workout, refinancing, staged realisation, debt sale and formal enforcement. Allow for likely proceeds, collateral priority, new funding requirements, timing, professional and carrying expenses, potential trading losses and uncertainty. A restructure should be supported only when its risk and return are superior or otherwise demonstrably acceptable under the relevant credit mandate.
Where a DOCA may form part of the credit solution
A deed of company arrangement is considered only where relevant to the lender's credit recovery and capital preservation strategy—for example, when a funded business-continuity or debt-recapitalisation proposal could support a more credible repayment outcome than a competing realisation scenario. Debtequity's potential contribution is commercial: evaluating security and ranking, the capital stack, funding requirements, the viability of continued trade, likely recoveries and the proposed repayment pathway.
We do not present ourselves as an insolvency practitioner or substitute for the administrator, deed administrator, courts or creditor approval processes. Where formal administration is involved, any proposed funding or management-led continuation must be consistent with the applicable statutory process, documents, secured-creditor rights and professional advice. There is no automatic Australian equivalent of a US debtor-in-possession financing regime.
Evidence-led decisions for challenged commercial exposures.
An integrated framework of 30 lender-facing reports and eight enhanced assurance disciplines, designed to establish liquidity, verify business viability, assess security, track management delivery and compare recovery alternatives. A proportionate evidence pack gives commercial credit departments a structured basis to consider continuing support, restructuring, refinancing or managed recovery.
This is Debtequity’s proposed public-facing toolkit, not a compulsory bank checklist, an adopted internal lending policy, or a guarantee of bank support. Scope is tailored to each borrower, transaction and lender mandate.
30 reports. Five credit decision disciplines.
Hover over a report title on desktop to preview its purpose, or click/tap to keep it open. Use the tools below to locate priorities and expand or close the full schedule.
Showing 30 reports
Financial Integrity & Immediate Liquidity
Establish the reliability of financial information and the cash required to continue trading.
0113-week rolling cash-flow forecastCritical
Weekly cash receipts, payments, liquidity headroom, funding gaps and forecast variance.
Evidence should be current, reconciled and independently reviewed where appropriate.
02Historical financial statementsCritical
Trading history, balance sheet position, cash generation and financial trends.
Evidence should be current, reconciled and independently reviewed where appropriate.
03Current management accountsCritical
Current P&L, balance sheet and cash-flow position reconciled to records.
Evidence should be current, reconciled and independently reviewed where appropriate.
04Actual vs budget and forecast varianceCritical
Explain shortfalls, variances and corrective actions.
Evidence should be current, reconciled and independently reviewed where appropriate.
05Working capital analysisCritical
Receivables, payables, inventory, cash conversion and liquidity release.
Evidence should be current, reconciled and independently reviewed where appropriate.
06Tax and statutory obligations reportCritical
ATO, GST, PAYG, superannuation, overdue amounts and arrangements.
Evidence should be current, reconciled and independently reviewed where appropriate.
Business Viability & Trading Recovery
Demonstrate that an operational recovery is credible, executable and measurable.
07Integrated 12–24-month three-way forecastCritical
Linked profit and loss, balance sheet and cash-flow forecasts.
Evidence should be current, reconciled and independently reviewed where appropriate.
08Customer and contract profitabilityHigh
Contribution by customer, contract, product and division.
Evidence should be current, reconciled and independently reviewed where appropriate.
09Revenue pipeline and secured order bookHigh
Revenue quality, contractual certainty, timing and cancellation risks.
Evidence should be current, reconciled and independently reviewed where appropriate.
10Operational turnaround planCritical
Actions, owners, costs, milestones and delivery accountability.
Evidence should be current, reconciled and independently reviewed where appropriate.
11Cost reduction and benefits trackerHigh
Verified savings, implementation costs and timing.
Evidence should be current, reconciled and independently reviewed where appropriate.
12Downside and sensitivity modelCritical
Stress-test revenue, margins, debtor collections and costs.
Evidence should be current, reconciled and independently reviewed where appropriate.
Credit Exposure, Security & Repayment
Understand the lender’s position and establish a defensible repayment pathway.
13Consolidated debt and security registerCritical
Balances, maturity, security ranking, guarantees and intercreditor dependencies.
Evidence should be current, reconciled and independently reviewed where appropriate.
14Collateral and valuation assessmentHigh
Independent values, asset quality, collateral eligibility and liquidity.
Evidence should be current, reconciled and independently reviewed where appropriate.
15Debt service and covenant modelCritical
Debt affordability, covenant headroom and prospective compliance.
Evidence should be current, reconciled and independently reviewed where appropriate.
16Security and priority reviewHigh
Mortgages, PPSR, guarantees, legal enforceability and creditor priority.
Evidence should be current, reconciled and independently reviewed where appropriate.
17Asset realisation and disposal planHigh
Non-core asset sales, realisable proceeds, costs and timing.
Evidence should be current, reconciled and independently reviewed where appropriate.
18Refinancing and capitalisation planCritical
Sources and uses, capital certainty, conditions and execution dates.
Evidence should be current, reconciled and independently reviewed where appropriate.
Governance & Stakeholder Assurance
Show that recovery actions are governed, monitored and independently challenged.
19Independent business reviewHigh
Independent testing of viability, forecasts and commercial assumptions.
Evidence should be current, reconciled and independently reviewed where appropriate.
20Board-approved recovery strategyCritical
Board accountability, risk owners, actions and decision gates.
Evidence should be current, reconciled and independently reviewed where appropriate.
21Critical supplier and creditor continuityHigh
Continuity of essential trade relationships and supply chain.
Evidence should be current, reconciled and independently reviewed where appropriate.
22Management capability assessmentHigh
Leadership capacity, turnaround skills and external assistance.
Evidence should be current, reconciled and independently reviewed where appropriate.
23Stakeholder exposure and interdependency mapHigh
Employees, financiers, suppliers, customers, guarantors and key dependencies.
Evidence should be current, reconciled and independently reviewed where appropriate.
24Weekly lender assurance dashboardCritical
Cash, covenants, delivery milestones, exceptions and leading indicators.
Evidence should be current, reconciled and independently reviewed where appropriate.
Recovery Economics & Credit Decision Support
Allow lenders to compare support, refinance, sale and enforcement on a risk-adjusted basis.
25Enforcement vs restructure recovery modelCritical
Net recovery alternatives, probability, time, costs and downside risk.
Evidence should be current, reconciled and independently reviewed where appropriate.
26Cost-of-recovery and realisation analysisHigh
Legal, enforcement, holding, trading and disposal costs.
Evidence should be current, reconciled and independently reviewed where appropriate.
27Forbearance and standstill proposalHigh
Relief requested, lender protections, conditions and review triggers.
Evidence should be current, reconciled and independently reviewed where appropriate.
28Staged funding and continuity modelSpecialist
New-money requirement, security, deployment controls and conditions.
Evidence should be current, reconciled and independently reviewed where appropriate.
29DOCA / negotiated settlement credit assessmentSpecialist
Creditor recoveries, security implications and implementation conditions.
Evidence should be current, reconciled and independently reviewed where appropriate.
30Bank credit decision paper and roadmapCritical
Recommended credit outcome, alternatives, approvals and implementation.
Evidence should be current, reconciled and independently reviewed where appropriate.
Priority ratings are Debtequity's proposed classification; actual lender requirements depend on facility type, size, industry, mandate, security and risk status.
Eight controls that make the evidence stronger.
Embed these within the 30 reports rather than requiring eight additional documents by default. The focus is verifiability, liquidity control and defensible lender decisions.
Cash forecast accuracy
Weekly actual-versus-forecast cash bridge
Daily liquidity visibility
Cash available, restricted cash and immediate funding headroom
Borrowing-base reconciliation
Eligibility and availability under receivables or asset-backed facilities
Entity-by-entity exposures
Intercompany balances, guarantees and cash movements
Discounted net recovery
Probability-weighted recoveries across realistic options
Stakeholder contributions
Verified sponsor, shareholder and creditor support
Benefits verification
Evidence that forecast operating improvements have occurred
Independent challenge
Sources, assumptions, author, reviewer and validation status
Three levels of commercial credit support.
Credit Stabilisation Pack
Immediate cash position, creditor exposure, security, tax arrears, operating continuity and weekly assurance reporting.
Recovery & Restructuring Pack
Integrated forecasts, operational actions, independent challenge, debt-service restoration and a funded recovery pathway.
Credit Decision & Recovery Optimisation
Compare restructure, refinance, realisation, debt sale and enforcement using costs, timing, execution risk and net recovery.
Urgent liquidity and borrower-protection considerations may need immediate attention before the full evidence pack is completed. Insolvency issues require appropriately qualified legal and insolvency advice.
Discuss a Credit Portfolio or Asset Management Mandate.
Engage Debtequity to explore commercial and property-backed credit opportunities, debt portfolio acquisitions, loan servicing, asset management, restructuring and recovery strategies.
Our approach begins with understanding the assets, stakeholders, existing obligations, commercial objectives and risk profile before establishing an appropriate management or capital pathway.
All engagements are subject to mandate assessment, applicable authorisations, due diligence and formal agreement. No lending commitment or authority to act is implied.