MPA asks lenders about common misconceptions found in the commercial space.
MPA asks lenders about common misconceptions found in the commercial lending space.
La Trobe Financial
By far the most common misconception we hear regarding commercial lending is that it is incredibly complex, best left for specialist brokers, and certainly not for the faint-hearted. Our view is that it doesn’t need to be.
One of the most crucial decisions a broker will make when lodging a transaction is which lender to use as this will often dictate the level of diffi culty or complexity. Brokers should investigate a lender’s policy and process for the specific transaction prior to lodging, to avoid any unnecessary delays or surprises.
ING DIRECT
That it’s all too hard. However, many brokers know their way around a profi t and loss and regularly negotiate home loan approvals for self-employed borrowers. They can use this knowledge to move into commercial lending – start small, talk to your BDMs, research the industry/customer before you interview them, and you’ll be more confident.
NAB Broker
The most common misconception is that commercial lending is only about the loan. Commercial lending is about understanding your customer’s needs beyond just the one transaction, and uncovering their business strategy to see how financing will fi t into the customer’s short-, medium- and long-term goals. If brokers do this, they will build strong relationships with their customers and become trusted, lifelong advisers.
Thinktank
As with many misconceptions, there are often elements of truth that lie behind them ... it is often the suggested difficulty of finding deals that work, then getting them set without an endless amount of hassle from the client, the lender or both. It certainly can be, but doesn’t have to be that way these days, where the availability of training and support is so good from the majority of lenders and aggregators. Commercial loans below about $2m are generally similar in experience to a self-employed home loan.
Suncorp
Business lending is more complex, and therefore it’s important for brokers to invest the time to educate themselves about the sector and get comfortable with having these discussions with their client base. Suncorp Bank has developed a series of educational forums and workshops to support our broker partners to have a stronger understanding of how to leverage their existing customer base to attract new business and gain SME exposure.
ANZ
The main misconception is that commercial lending is too hard. Sure, being a full commercial broker through ANZ does require extensive training (which ANZ off ers face-to-face); however, if this is not where brokers want to start, brokers can simply provide the name and number for their client and we will do the rest under our spotter accreditation. It can’t get any easier than that.
Liberty Financial
We often hear brokers say that commercial lending is so much more complex than other lending. Although experience always helps, the fundamentals are the same, and it’s easier than many think. If you take the time to understand the customer’s needs and financial position, then all the broker has to do is work with various products and lenders to find the right solution.
La Trobe Financial
By far the most common misconception we hear regarding commercial lending is that it is incredibly complex, best left for specialist brokers, and certainly not for the faint-hearted. Our view is that it doesn’t need to be.
One of the most crucial decisions a broker will make when lodging a transaction is which lender to use as this will often dictate the level of diffi culty or complexity. Brokers should investigate a lender’s policy and process for the specific transaction prior to lodging, to avoid any unnecessary delays or surprises.
ING DIRECT
That it’s all too hard. However, many brokers know their way around a profi t and loss and regularly negotiate home loan approvals for self-employed borrowers. They can use this knowledge to move into commercial lending – start small, talk to your BDMs, research the industry/customer before you interview them, and you’ll be more confident.
NAB Broker
The most common misconception is that commercial lending is only about the loan. Commercial lending is about understanding your customer’s needs beyond just the one transaction, and uncovering their business strategy to see how financing will fi t into the customer’s short-, medium- and long-term goals. If brokers do this, they will build strong relationships with their customers and become trusted, lifelong advisers.
Thinktank
As with many misconceptions, there are often elements of truth that lie behind them ... it is often the suggested difficulty of finding deals that work, then getting them set without an endless amount of hassle from the client, the lender or both. It certainly can be, but doesn’t have to be that way these days, where the availability of training and support is so good from the majority of lenders and aggregators. Commercial loans below about $2m are generally similar in experience to a self-employed home loan.
Suncorp
Business lending is more complex, and therefore it’s important for brokers to invest the time to educate themselves about the sector and get comfortable with having these discussions with their client base. Suncorp Bank has developed a series of educational forums and workshops to support our broker partners to have a stronger understanding of how to leverage their existing customer base to attract new business and gain SME exposure.
ANZ
The main misconception is that commercial lending is too hard. Sure, being a full commercial broker through ANZ does require extensive training (which ANZ off ers face-to-face); however, if this is not where brokers want to start, brokers can simply provide the name and number for their client and we will do the rest under our spotter accreditation. It can’t get any easier than that.
Liberty Financial
We often hear brokers say that commercial lending is so much more complex than other lending. Although experience always helps, the fundamentals are the same, and it’s easier than many think. If you take the time to understand the customer’s needs and financial position, then all the broker has to do is work with various products and lenders to find the right solution.
