Resource · Working demonstration
Six entities. One family business. Eighteen findings.
This page is a live demonstration of an entity mapping review: a tool that reads a full lending document pack and maps who owns what, who controls what, and where the money actually goes.
Every entity, person and figure on this page is invented. The Hartley Group is a synthetic file built to test and demonstrate the tool. No real client is represented.
The scenario
A structure that accumulated rather than being designed.
David and Claire Hartley own a civil contracting business in Adelaide. Over eleven years the business has grown into six entities: a trading company, two trusts, a property company, a super fund and one company nobody mentioned. Now the group is applying for $1,800,000 in new finance, and every one of those entities affects whether the application succeeds.
The review below is what the mapping tool produced from the group's document pack: financial statements, trust deeds, loan statements, security searches and the application itself. Every figure it shows traces back to a source document, and where a figure is inferred rather than read, the review says so.
The file at a glance: six entities and two directors, $3,180,000 of existing commercial debt, $816,000 of obligations that appear on no balance sheet, one undisclosed company already trading, and 18 findings a credit assessor would raise.
Writing commercial deals yourself? Read the broker briefing that precedes this demonstration.
The map
The structure, mapped.
Select an entity to trace its exposure: its finances, its security position, its guarantees and its related party cash flows. The map holds five kinds of relationship, because ownership alone never tells the story.
All five relationship types are switched off, so there is nothing to draw.
Select an entity to trace its exposure. Press Escape to clear the selection.
The findings
What needed answering before this went anywhere near a lender.
The review raised eighteen findings and graded them. Five would stop or reprice the deal. Seven require explanation or restructure. Six belong in the submission as context. The five that matter most are below in full; the rest open on demand.
Significant
Requires explanation or restructure before lodgement.
Watch
Address in the submission as context.
The serviceability question
Two defensible readings of the same accounts.
Hartley Civil reported net profit before tax of $618,000. What that becomes depends entirely on which add-backs survive scrutiny. The review does not choose. It shows both positions and names the assumption behind each, so the conversation happens before lodgement rather than after.
Position one
As presented
| Net profit before tax | 618,000 |
|---|---|
| Excess related party rent | +122,000 |
| Management fee to Plant Trust | +180,000 |
| Salary, non-active director | +95,000 |
| Interest | +96,000 |
| Depreciation | +42,000 |
| Adjusted earnings | $1,153,000 |
Assumes every related party charge is discretionary and can be reduced or removed at the group's election.
Position two
As a credit assessor is likely to read it
| Net profit before tax | 618,000 |
|---|---|
| Excess rent, not free cash | 0 |
| Management fee, not free cash | 0 |
| Salary, non-active director | +95,000 |
| Interest | +96,000 |
| Depreciation | +42,000 |
| Adjusted earnings | $851,000 |
Northgate services a $1,620,000 mortgage from the rent. The Plant Trust meets $384,000 of annual equipment commitments from the hire and management fee. Neither charge can be removed without leaving a related entity unable to pay.
The gap between the two readings is $302,000. Against post-facility group commitments, that is the difference between a comfortable file and a marginal one.
This is the point to resolve with the client before lodgement, not after the credit assessor raises it.
Complexity is not the problem. Unmapped complexity is.
This demonstration took a full document pack and turned it into a picture a business owner can act on. Finding the places in your business where AI can do work like this is what the AI Reality Check is for.
Not ready to book? Email hello@marinaritchie.com and start the conversation.