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Jessica Darnbrough
Self-employed borrowers represent a key target market brokers should aim for in the year ahead according to two of The Adviser's Elite Business Writers.
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Speaking to The Adviser, Pink Finance's Nicole Cannon said self-employed clients tend to not only "refer inwards", but also revisit their broker on an ongoing basis.
"Every business has a story, once you get to know that story you can be assured that the borrower will stick around long term because they don't want to go through that whole process again and again with other financial providers," she said.
Proforma's Fred Obeido said self-employed borrowers also tend to have more than one financial need that requires servicing, thus giving brokers additional revenue from the one client.
"When you help a self-employed borrower, you are not just helping them find the right home loan, you can also help them consolidate their debts, obtain a business loan or even car finance," he said.
"If you understand their situation and their business, they can bring a lot of additional revenue – far more than your typical PAYG client."
Mr Obeido said in the current market it pays for brokers to have clients that they can help in many areas.
"It is a tough market, but there are always opportunities, you just have to know where to look," he said.
Brokers know all too well how tough the market is at the moment.
According to a recent The Adviser straw poll, a majority of brokers don't expect their volumes to increase in 2012.
Of the 322 respondents, 52.5 per cent of brokers said their volumes would not increase in 2012, while 47.5 per cent remained optimistic about the year ahead.
