Task 2 - Develop complex broking options You are required to prepare a full loan proposal addressed to Ray and Steve outlining available loan options and the application process. The proposal must also describe the potential advantages and disadvantages of the financing option that is being recommended In a suitable report format, you should prepare the proposal to Ray and Steve, covering the following: 1. The parties to the loan - what names will be on the loan contract ? 2 . Provide two (2) different product options that would meet their needs and objectives - outline the product name/type, loan term, interest rate, balloon payment (if applicable), fees and charges and monthly repayments. 3. Provide your recommendation of the best product option to meet their needs. State why the other product was not in their best interest or the best option for them. 4 Name three (3) lenders that offer the product you recommended for their transaction. Advise them about the product type, loan terms that are available, interest rate, balloon payment (if applicable), fees and charges and monthly repayments. 5 . Provide a summary of the lender's applicable fees and charges - including set up costs and ongoing fees and charges. 6. Advise which relevant disclosures need to be made covering broker remuneration. 7 Outline all security that will be required, including directors guarantees. List the documentation they need to provide to obtain the funding for the machine and to obtain a loan approval. Outline their responsibilities, so they fully understand their obligations regarding the security offered and the equipment during the loan term 10 Provide details of the financial and transaction risks associated with the new loan of which they should be made aware. For example, what would happen if they could no longer service the debt? 11. They enquired about claiming back the GST that is included in the purchase price of the machine. You also feel that they may be able to utilise 'Small Business Asset - Instant asset write-off' benefits. In accordance with your qualification as a mortgage broker, what should you advise them to do regarding their question on claiming back GST? 12. Invite them to ask you any questions they may have about the transaction. 13. Provide an instruction for them to advise you to proceed with the application on their behalf. (800 words) Notes: Any assumptions you make should be listed, and not be in conflict with the case study information already provided You are to write a loan proposal to your clients, demonstrating your professional writing skill - not simply commenting on each of the points detailed above. Your proposal should be supported by evidence-based statements and not contain opinion-based commentary. The use of tables in the report to set out some of the numeric information may be of benefit . Use an Upfront commission at 0.66 % and trail of 0.165 % which includes GST