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Brokers have been advised that a flood of commercial deals could be heading their way in the next few months.
According to ING Direct, business credit and commercial lending are set for a strong start to the financial year, with 60 per cent of commercial business traditionally written from July to December.
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ING Direct national partnership manager – third-party commercial, John Kolyvas, said all signs pointed to a successful year for brokers operating in the commercial property market.
“The current growth for business credit is outstripping 2015 and we’re on the cusp of the busiest time of year (July-December) for commercial property lending,” Mr Kolyvas said.
“At ING Direct, we’ve already experienced a record month in May with commercial and business lending in the sub-$5 million category up 40 per cent on this time last year.”
The bank also noted that the latest Reserve Bank figures show lenders’ business loan portfolios grew by 0.05 per cent compared with April, and by 7.4 per cent over 12 months.
May’s soft growth was preceded by a strong April where the industry experienced growth in excess of 7 per cent for the first time since 2009.
ING Direct’s commercial property training program also saw growth in demand, with more than 100 brokers across Australia participating since its launch in January.
The non-major bank is helping residential brokers looking to diversify into commercial by sharing knowledge of the commercial lending process and workshopping deals through its residential BDMs and credit assist team.
“Our focus is to support brokers to upskill and diversify their business, and help them build longstanding and valuable relationships with their clients, meeting their property needs beyond residential,” Mr Kolyvas said.
[Related: Brokers hamstrung by banks over new business]
