It’s not all about numbers; sitting down with commercial clients can produce far better solutions
It’s not all about numbers; sitting down with commercial clients can produce better solutions
Brokers are commonly told diversification is critical. However actually moving beyond time-honoured residential approaches, to deal with sophisticated business clients, demands a shift in attitude. Writing for our sister title, Canadian Mortgage Professional, Steven Walter highlighted the essentials, which MPA has adapted for Australian brokers.
Break the ice
Some things never change when it comes to meeting clients. Despite all the hours you may have spent pouring over your client’s numbers, you need to use the same social skills – gentle humour, discussion about family and hobbies – to relax the client. This isn’t just being polite; the whole reason you’re meeting the client is to go beyond simple numbers and explore their character. A relaxed client is far more likely to reveal this.
The interview stage
This is where commercial brokers need to step up. After relaxing the client, you need to move to the hard questions, or as Walters puts it, “to explain in depth the ‘how’, ‘why’, ‘where’ and ‘what’ of the project to be financed”. Do ask specific questions about the site; has an environmental or geotechnical report been done? Is the site clean? Some brokers actually drive to commercial sites in person to answer these questions. Once you have this information you can confidently offer strategy suggestions and think of creative solutions.
What you should get out of the meeting
Considering the position of borrower and lender after the interview is crucial. Being able to put a client’s thought process down on paper may allow you to argue for a very different loan structure then the numbers would suggest. You may also have uncovered extra security that can be used to get a lower rate or risk fee.
Have you taken MPA’s poll yet? We’re looking at attitudes to brokers giving property investment advice – closes 10 September.
Brokers are commonly told diversification is critical. However actually moving beyond time-honoured residential approaches, to deal with sophisticated business clients, demands a shift in attitude. Writing for our sister title, Canadian Mortgage Professional, Steven Walter highlighted the essentials, which MPA has adapted for Australian brokers.
Break the ice
Some things never change when it comes to meeting clients. Despite all the hours you may have spent pouring over your client’s numbers, you need to use the same social skills – gentle humour, discussion about family and hobbies – to relax the client. This isn’t just being polite; the whole reason you’re meeting the client is to go beyond simple numbers and explore their character. A relaxed client is far more likely to reveal this.
The interview stage
This is where commercial brokers need to step up. After relaxing the client, you need to move to the hard questions, or as Walters puts it, “to explain in depth the ‘how’, ‘why’, ‘where’ and ‘what’ of the project to be financed”. Do ask specific questions about the site; has an environmental or geotechnical report been done? Is the site clean? Some brokers actually drive to commercial sites in person to answer these questions. Once you have this information you can confidently offer strategy suggestions and think of creative solutions.
What you should get out of the meeting
Considering the position of borrower and lender after the interview is crucial. Being able to put a client’s thought process down on paper may allow you to argue for a very different loan structure then the numbers would suggest. You may also have uncovered extra security that can be used to get a lower rate or risk fee.
Have you taken MPA’s poll yet? We’re looking at attitudes to brokers giving property investment advice – closes 10 September.
