Change your mindset
Expand your mindset to see yourself as a complete finance solution provider. Although there’s much to offer as a mortgage broker, many of your clients have additional financial needs that are not being met. By starting to think of yourself as a holistic finance solution provider, you will be able to increase your value to your current clients and expand your business. Keep in mind that many mortgage brokers have successfully expanded their services by offering small business finance.
Mine your database
In Australia, there are around 2.2 million small-to-medium enterprises. Many of these businesses find it challenging to get the finance they need. For example, one survey found that 40% of SMEs found it difficult to access business finance. Many of these business owners can be found in your database. For the average mortgage broker, 25% of their clients are small business owners or self-employed sole traders. So you don’t need to go beyond your current clients to expand into small business lending. You can start by checking your database to determine how many of your clients are business owners. It’s likely that a large percentage of them will need business loans at some time.
Let your clients know you can help
Your mortgage lending clients would prefer to work with someone they know instead of finding someone new to work with. But they won’t know that you offer small business lending solutions if you don’t inform them. If you send out an email newsletter to keep in touch with your clients, this is the perfect way to get the news out about business lending. Also, if you have a social media presence, let your prospects and clients know that you offer small business finance solutions.
Have the conversation about business finance
Once you have identified which of your clients are business owners, the next step is uncovering their business finance needs. A few of the reasons for seeking unsecured business finance include:
- Managing cash flow – this is a common reason for seeking business finance. Seasonal fluctuations or lag times between creating and selling a product or service can cause cash flow shortages.
- Purchase inventory – following from the previous point, the gap between purchasing inventory and selling it can create cash flow issues. Business owners often need finance to purchase the inventory to keep their business running.
- Buying machinery and equipment – machinery and equipment are often too expensive to purchase with cash. Unsecured business lending can be the solution when businesses need machinery or equipment to produce goods or deliver services.
- Marketing and advertising – effective advertising and marketing are essential for business growth. A business loan can be used to ramp up these promotional activities.
- Relocating – businesses often need to relocate as they expand. The cost can be prohibitive and require business finance.
- Consolidating debt or paying tax bills – consolidating business debt or paying off outstanding ATO debt is a common reason for seeking business finance.
- Hiring and training new staff – growing businesses need to hire and train new staff. It takes time to see the results from new staff, so business finance can help cover this expense.
Whatever the reason, most small businesses will need finance at some point. Letting your existing mortgage clients know that you have an option available with Moula will increase your value to them as a holistic finance solution provider.
Moula makes it easy to offer small business loans
The application process with Moula is fast and easy. Lending decisions are based on accounting and bank data, so there’s no messy paperwork or long wait times to get an answer. With a 9.8 out of 10 customer satisfaction rate on Trustpilot, customers keep coming back for additional finance needs, so you get ongoing commissions with every loan funded by Moula.
In addition, you get a dedicated Moula BDM to answer your questions and make the business lending process as quick and simple as possible.