With the 2020 Federal Budget paving the way for business investment and growth, the opportunities for finance brokers are now immense. MPA spoke with commercial finance experts from Marketplace Finance about the way brokers can leverage heightened demand for commercial lending in order to grow their business.
Commercial lending to fuel economic growth
The uncapped instant asset write-off for businesses with an annual turnover of less than $5b announced in last week’s budget has certainly been a high point of discussion, as has been the new ability for businesses to offset tax losses against previous profits on which tax has been paid.
“The recent Federal Budget has shown that the government is committed to business leading the nation through the economic recovery,” says MKP co-director Matthew Johnson.
“At MKP, we believe this will lead to a surge in businesses looking to expand their operations with lending providing part of the necessary capital to fuel this growth.”
He adds that this will bring opportunities for brokers to assist their clients with commercial property finance, working capital funding and plant and equipment finance.
“In an environment where unemployment is expected to continue growing, tapping into the commercial lending market will provide brokers with a diversified source of business if residential lending comes under pressure.”
New finance opportunities start at home
According to MKP associate sales director Isabella Constantinou, brokers can leverage these opportunities by tapping into their existing client base.
“If you have self-employed clients, they are more often than not going to have a need for commercial debt somewhere within their business.”
“Having a thorough understanding of your client’s asset position, business operations and future goals can help identify areas where they may need either new commercial debt or a restructure of existing facilities.”
She adds that keeping strong lines of communication with the accountants, solicitors, builders and other consultants of the client can often lead to new referral sources and even new deals.
“The opportunities for brokers to succeed in commercial lending are significant in the current climate and this capability will help to build a more sustainable business and industry overall.”
Training and education are key
Industry stalwart Dino Pacella says MKP’s upcoming virtual event: Grow your Business with Marketplace Finance aims to take diversification to the next level by showing brokers how to expand their business reach, increase their revenue and decide whether to receive on the job training.
“As national manager partner acquisition, I’m a strong believer in helping brokers grow their business.”
“Giving a broker the ability to choose how each transaction is handled with their client provides them the security of partnering with an experienced specialist team, who are always committed to securing the best results.”
He says this enables a deeper level of trust to occur, which can lead to better outcomes and more opportunities for growth.
National relationship manager Zoran Petkovski says the webinar will look at the way brokers can manage their businesses over the long term.
“The fundamental role of a mortgage broker as well as the environment in which mortgage brokers operate within has changed dramatically over the last few years.”
“We, as finance brokers, are the trusted advisor to our clients when they make their biggest transactions in their lives – purchasing their own homes, as well as when they are also looking to become self-employed or grow their businesses.”
“Diversification has never been more important than it is today in order for finance brokers to remain relevant.”
The event will be livestreamed on LinkedIn next Tuesday at 10am AEDT.