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The Adviser speaks to Finance Achievers managing director Kevin Pausin about his business’s involvement in commercial lending.
How much of your business is made up of commercial lending?
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Our business is predominately residential mortgages, but we have increased our commercial settlements over the past 12 months.
What marked the decision to add commercial lending to your service proposition?
We have always offered it, however, we were always focused on the resi market. Opportunities are certainly there to increase this side of the business and, in fact, we have recently appointed a new broker who will be mainly active in commercial/business lending in view of his vast experience in this area from his previous business banking role.
Is incorporating commercial lending into your business an easy or difficult process?
It’s a simple process that requires a good marketing strategy and plan.
What types of clients generally need the option of commercial lending?
Existing self-employed clients and investors are the prime targets initially.
Would you say the number of brokers who are adding commercial lending as a new revenue stream is increasing?
Yes, certainly. Brokers can see the opportunities available, and it has given some of them the chance to expand their knowledge and offering to clients.
What are the bottom-line benefits your business has seen since offering commercial lending?
It gives the business a good balance and provides additional referrer opportunities with accountants. It also provides spin-offs to other lending. Clients can deal with us and be confident of the process.
What is the number one thing a broker should know when looking to make the move into commercial lending?
Commercial is complex compared to home loan lending, and prospective brokers should certainly obtain the right training and knowledge to ensure they can comfortably assist clients in this area.
