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Commercial finance “not a direct translation”

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    Commercial lending is “not a direct translation” from mortgage broking, according to one aggregator trying to help its brokers diversify in the right way.

    While mortgage brokers are often advised to diversify into commercial lending, Loan Market chairman Sam White said it was “simplistic” simply to tell them to give it a go.

    The group is guiding brokers with a training course where they can learn fully about asset finance and qualify to write loans. It includes a one-day training course and then a 12 week program to help them learn the skills. Not leaving them there, this is followed by a weekly webinar with a group to go through what they have learned and how they have done it.

    White said it is important brokers are fully prepared to move across to commercial finance.

    “They’re different, and the expectations of the customer are different. If the customer wants to buy a car it needs to be done tomorrow. If you don’t respond to a customer for their mortgage the same day, it’s not the end of the world. Time is much more critical,” he said.

    Loan Market is also seeing its brokers recruit asset finance specialists into their business, but it is trying to make things easier for those who don’t want to or can’t recruit into their business.

    Loan Market has a panel of asset finance specialists that brokers can refer their customers to with contractual obligations that they will only deal with that solution, so brokers don’t have to worry about losing their customers.

    White said he encourages them to build relationships with those brokers.

    “The best thing is to create a relationship because no broker will refer to someone they don’t know. They have got expectations about how you talk to people, so they know their customers is in good hands,” White said.

    Related stories:

    • 2019 Top 10 Commercial Brokers
    • Commercial Lending Guide: Asset and Equipment Finance
    • Big bank webinar series to help brokers diversify

    Original Article