Reason 1: To create a consistent income stream
Diversifying into commercial lending is a natural hedge to ensure a consistent stream of income during flat periods in residential lending.
Reason 2: To fulfil a need in the market
A lot of business customers work directly with the major banks, where their representative may only have three or six months’ experience and thousands of small-to-medium enterprises (SMEs) in their portfolio.
Brokers can leverage this gap in the market to their advantage when they are expanding into commercial lending.
Reason 3: Better serve your existing customer base
Given the sheer number of SMEs in Australia, it’s highly probable you’re already working with customers who own their own business.
Looking for commercial opportunities within your current base can lead to new revenue sources, but also safeguard your residential income sources.
Thinking about diversifying into commercial lending?
Then why not download the better broker’s guide to diversifying your business into commercial lending! You will get easy to follow practical steps to set you on the path to future proofing your income strategy.
