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ISCOVER
Staff Reporter
National Finance Club is advising brokers affected by the recent spate of natural disasters to explore flexible commission structures.
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NFC general manager Andrew Clouston said a flexible commission structure could help increase cash flow in broker businesses.
Like many other industries, the broker channel has been severely affected in recent months and reduced loan volumes are having a direct impact on the livelihoods of many brokers.
“The floods have had a particularly damaging impact on businesses across Queensland, parts of New South Wales and Victoria, with initial figures suggesting loan volumes in Queensland are almost half what they were this time last year,” Mr Clouston said.
“This is already having a serious impact on the hip-pocket of brokers in the region, particularly those who are locked into fixed-term commission trails and are dependent on processing high volumes.
“A flexible structure that enables the broker to take control of their commission split and levels and receive a proportion of their commission upfront can be an excellent way to ease cash flow pressures.”
NFC is also encouraging brokers who have written loans through the lender to get on the front foot and contact their clients to see if they would like to apply for a temporary deferment of their monthly mortgage payments.
Mr Clouston said people who have loans with NFC and have been affected by fire, flooding and cyclones across the country may also be eligible to have the interest charges on their loan suspended for up to three months.
