Making it easier for SMEs to invest
Making it easier for SMEs to invest.
BOQ Head of Third Party, Karen Carter, shares her tips for brokers looking to build their client portfolio and partner with the right financiers.
In the wake of the COVID-19 pandemic many Australian businesses have had to diversify to survive. The same applies to brokers who are now looking to provide business lending solutions to their residential clients. Brokering a loan for a small business is different to helping a customer secure a residential loan, so here are some tips for recommending the right bank and product to your clients.
Before you go out to find clients, it’s important that you know what kind of broker you want to be. Do you want to be a generalist or a specialist in a particular sector? BOQ works with numerous specialist brokers who have carved out a niche for their business by positioning themselves within a particular industry. They’ve been successful through aligning with industry bodies, associations and suppliers; and even geographically placing themselves within the vicinity of their target market. For example, a health-focussed broker located close to a hospital or medical precinct.
Once you have decided on the industries you want to focus on, it’s worth taking a financial course, (such as Accendo Financial or FINSIA), to understand how to complete servicing exercises. It’s also worth working with Business Development Managers and Relationship Managers from your preferred lenders and asking them to show you how to complete commercial lending applications.
It’s important that you take the time to understand your client, their business, industry trends and the market they operate in. LinkedIn, Google, IBISWorld and the business’ own website are great sources of information for learning about the business before you meet with them.
Never assume that you have a solution before you really understand the mechanics of your client’s business. Every business is different, so take the time to know what questions to ask for specific industries, what is important to the business’ owners and directors, what their goals are and how they intend to fund their growth. It’s important that you understand the ‘why’ behind your client’s requirements because the bank or lender will ask! If you don’t understand something or think there are more facts to uncover, keep asking questions.
Assisting SMEs through the process of raising capital can be a complex process so it’s important to know where your expertise starts and ends. Work with your own financial advisor, accountant and/ or aggregator for advice on what options there are in the market for who you can work with.
Partnering with a financer that can support you is key to delivering a successful outcome for your clients. At BOQ we focus on building genuine long-term relationships with brokers. Our Commercial Broker portal provides a self-service platform for our accredited brokers with access to niche business lending guidelines, application forms, servicing calculators as well as checklists to help frame your interview with the client, so you can recommend the best bank and product to suit their needs.
Visit the Commercial Broker web page to find out more about how Karen and her team can support your broker business.
This blog post is for general information purposes only and is not intended as financial, taxation or professional advice. It has not been prepared with reference to the financial circumstances of any particular person or business and should not be relied on as such. You should seek your own independent financial, legal and taxation advice before making any decision about any action in relation to the material in this article.
Credit provided by Bank of Queensland Limited ABN 32 009 656 740 AFSL and Australian Credit Licence no. 244616 (BOQ). Conditions, criteria and fees apply. BOQ's standard credit assessment criteria apply. This website contains general advice, which has been prepared without taking account of your objectives, financial situation or needs. You should consider the appropriateness of any advice before acting on it. You should obtain and read the relevant T&Cs and Guide to Fees and Charges that apply to this product before making any decision about whether to acquire or continue to hold it, available at your local BOQ branch or at boq.com.au.
Acceptance of any application for credit is always at BOQ's lending discretion.
Information current as at 07 July 2023.
For more information about Federal, State and Territory Government financial support measures available to Australian businesses, download our comprehensive summary here. You can also stay up-to-date with new announcements via the Australian Government's support for business page found here, or for State and Territory-specific information, click here.