As the lending landscape changes, Gortan is prepared not only for di¬fficult deals but also to support people's mental health
Simplicity Loans and Advisory was established in 2017 with a view to specialising in all aspects of commercial, construction and private finance. With 15 staff, the majority working in the back office, managing director Jean-Pierre Gortan wrote the majority of his loans in commercial property and development finance last year.
He says his success in writing more than $381m in commercial loans is due to tenacity and experience, and never wanting to let a client down, as well as to the group’s internal processes and excellent staff.
Commercial property and development finance are where he has the most expertise, Gortan says, but the market is particularly “dynamic and turbulent” at the moment; lenders are scaling back LVRs, increasing presale coverage, “or worse, just putting their hands in their pockets”.
He adds that the most difficult thing he has to deal with right now is lenders pulling approvals for already-committed deals.
“Deals that two months ago you would have had three or four options, now you might not have any. Relationships with your lenders are now more important than ever,” Gortan says.
Looking to the next few months, he expects continuing problems with lenders not lending, significant pressure on all business working capital, and reduced activity in all markets.
Before the current situation, however, Gortan says the major banks were coming back to the table for quality clients and the right projects, and pricing from the private and non-bank lenders was reducing significantly. Now, as the world runs a little differently, Gortan and other brokers are having to adjust the way they interact with clients. He says this makes things difficult because being face-to-face helps with engagement and trust.
To prepare for the ongoing challenges, Gortan has invested in areas such as lead generation, IT and services so the office can work remotely and train staff.
One area Gortan wants to focus on is mental health.
As the next few months will undoubtedly bring lending and economic challenges, he expects a prevalence of trauma among staff and clients.
“[We have] established a number of communication channels for our staff and clients to speak to trained mental health professionals,” he says.
Gortan says that, for a commercial broker looking to grow and expand a business, it is important to invest in yourself, adding that it is your knowledge that sets you apart from others. He also advises brokers to “be good at saying no”, rather than trying to invest in every deal. “You will save yourself lots of time and heartache,” he explains.
Finally, he says new-to-commercial brokers should start with the basics and partner with someone they can trust for the more complex deals.
Total value of loans settled: $381,024,605
Number of commercial loans settled: 52
Average commercial loan size: $7,327,396
Years as a commercial broker: 9
Aggregator: FAST
