Head to head: What does commercial lending offer brokers?

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  • SPECIAL REPORTS

    • 2018 Commercial Lenders Roundtable
    • Top 10 Brokerages 2018
    • 2018 Brokers on Aggregators

    Brokers discuss the opportunities in the space

    Ren Hor Wong

    Executive chairman and CEO

    N1 Holdings

    “With more and more SME lenders in the space, business owners need brokers to help them navigate the marketplace and choose products that suit their needs, which are generally in the following four categories. Commercial property loans: these suit commercial property investors or company borrowers. Secured asset lending: suitable for SME owners or company borrowers that have equity in an asset but have yet to come up with updated income evidence. Unsecured business loans: many fintech lenders o­ffer this type of loan that is based on trading business revenues instead of taking a property as security. Cash flow loans: products that are gaining popularity, such as invoice finance, trade finance, etc.”

    Whitlam Malkoun

    Senior broker

    Aussie

    “Multiple. With credit tightening up in the most traditional segment of our business, brokers need to look outside the norm and expand their income opportunities, which should include insurance offerings and, most certainly, commercial. Commercial will open doors to plenty of opportunities. It could be in investment lending or just general basic marketing of yourself and your brand. Get this segment right and it could well end up being a very long-term, solid referring partner that you can work with and nurture for years to come. Nothing is too hard. If you don’t understand commercial lending, go out and learn it. Ongoing education is a minimum staple in our industry.”

    Craig McGregor

    Commercial finance advisory and mentoring

    My Mortgage Manager Commercial

    “The obvious opportunity is to build a diversified income stream based on a holistic approach to serving clients. Most residential brokers may only be addressing their customers’ immediate need for residential finance. Should you extend your interviewing techniques to include discussions around business performance and cash flow improvement, you may identify solutions for financing business loans, commercial property, equipment, cash flow (debtor), insurance premiums, import finance, etc. However, as commercial lending is a specialised field with detrimental outcomes for businesses if the finance structure is not appropriate, I would recommend using a mentor to upskill or acquire expertise.”

    Original Article