Elective Units (Five Units, at Least Three From the Listed Electives)
Choosing and applying electives
The elective component lets candidates specialise. Typical electives in this qualification include units on lending for business, lending for residential property, lending for personal and consumer finance, and units on sales and marketing or customer service. Candidates must understand how elective knowledge integrates with the core: an elective on business lending, for example, requires the same responsible lending discipline applied to commercial cash flow analysis.
Concepts to master
- Business lending: cash flow, debt service cover, security and guarantor analysis.
- Residential lending: product features, LVR, LMI and construction loans.
- Personal and consumer finance: car loans, personal loans and credit cards.
- Sales and marketing: ethical promotion and disclosure.
- Customer service: complaint handling and retention.
Traps in questions
Questions often assume business lending is unregulated; responsible lending principles and disclosure still apply in many commercial contexts. Another trap is treating an elective as less rigorous than a core unit. Watch for answers that apply consumer lending shortcuts to commercial scenarios.
Rule of thumb
Same discipline, different evidence. Electives change the evidence base, not the standards.
Worked example
A business client seeks equipment finance. The broker analyses cash flow and debt service cover, obtains financial statements and a guarantee, and documents the assessment - applying the same rigour as a residential application.