According to the Minister for Small Business Kelly O’Dwyer, more than 2 million small businesses employ more than 4.5 million Australians, which is almost 40% of Australia’s labour force. Small business contributes more than $340 billion to our economy every year, so you can imagine how access to capital is crucial. Australian SMEs are a critical element of our economy, so it is little wonder that the major banks are out there selling their billions of dollars of support to small business.
Many of the 14,000 brokers in Australia are residential mortgage writers, and a large percentage believe commercial solutions are not within their skill set. A residential broker might not even know where to begin with a client looking for a business loan.
Have you ever had to decline business that comes your way, or refer it to someone else, because you feel it’s not your field?
That’s probably not the best outcome for you and your business, let alone keeping a sticky customer.
If this sounds like you, and you’d like to expand to business broking, there’s now an easy way. The ever-increasing commercial lending industry has many brokers seeking upskilling opportunities. Lenders have acknowledged this need and have developed their own programs which range from a few hours to full day courses. What you’ll find is that after a quick crash course, you’ll have the foundations to write commercial business. The courses will take you through reading Profit and Loss statements, company tax returns and how you can generate commercial opportunities within your existing portfolio.
Fintech companies and alternative lenders are also assisting brokers with providing alternative solutions without the headache and work of a traditional commercial application. These solutions are even simpler for brokers to use, and often don’t require more than a few minutes of a broker’s time in order to execute. With fintech solutions, it’s simple to upskill to business broking, and start to see new revenue streams for your business.
Think about it this way; instead of declining a solution you never thought you could provide, you’ve just given a client another reason to stay with you for all their other financial needs. Alternatively, you could tell them to go into their nearest bank branch, where it is highly likely you’ve lost an entire relationship.
The commercial/business market will quickly evolve with digital platforms entering the market and existing lenders redeveloping their proposition. The best thing for you to do as a broker is to ensure you are at the forefront of the market, to ensure you keep your customers’, and keep your business growing.