As traditional and non-bank lenders battle for shares of the $347 billion business loan market, the proverbial doors have opened for brokers that can offer business customers a range of lender options, structured deals and simplified application processes.
It is important to remember the opportunities are already there for brokers ready to conquer commercial lending, as is the support!
And, while there are complexities to commercial lending, the training and support available through lending partners and certain aggregators, such as AFG, has never been better.
First thing’s first: what exactly is commercial lending?
It can include loans to purchase commercial property, equipment, vehicles or assets; or loans to boost cash flow, fund business expansions and assist with the costs of running a business.
For the most part, commercial lending isn’t too far removed from residential lending. For example, the process and engagement between client and lender is largely the same.
The complexity comes in various business structures, new loan types, multiple and composite securities, complicated/inter-related streams, loan terms and terminology.
For example, commercial property loans typically have shorter loan terms of between two and 15 years, compared with the typical 30-year terms of residential property loans. There are also two types of commercial property.
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.
