This article was produced in partnership with Prospa
Roberto Sanz joined Prospa in 2015 as national sales manager with 15+ years’ experience in finance and sales which he applies to growing the extensive broking channel. Combining his passion for building high performing sales teams, his vast industry knowledge and a master in banking and business strategy, he leads the intermediary channel for Australia.
Diversifying with commercial lending is paying dividends for many brokers. Prospa national sales manager Roberto Sanz outlines the benefits and provides simple tips to make your expansion to commercial lending successful.
Demand for commercial funding remains strong
Brokers will be pleased to learn that demand for commercial lending remains strong despite the challenges of the current market, with rising interest rates, inflation and increased operating costs.
A recent YouGov survey commissioned by Prospa^ showed that despite the tough operating environment, 70% of Aussie small business leaders still rate the health of their businesses as good or very good, with the majority still expecting growth.
In order to overcome challenges and embrace growth opportunities, businesses often require access to funding – the research found 26% of business owners plan to access funds to achieve their future business goals over the next 12 months.
What are the benefits of commercial lending?
Commercial lending offers a valuable opportunity to not only grow your business and earn a new income stream, but also to create stickier relationships with your clients as you can support them through multiple scenarios.
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Prospa partner Brian Warner, Mortgage Broker at Finance Partners, says that working with Prospa also allows him to offer speed and ease to his clients and gain fast commission.
“I had a client whose business had grown rapidly but, due to having only a small overdraft, they were using their own funds to meet cash flow. They approached their own lender and were told an application would take eight weeks to assess, with no certainty of the outcome.
“They were referred to me by their accountant and we lodged an application with Prospa using simple business and financial infromation. A Prospa Business Line of Credit was approved and funded in days.”
Brian said his new client was amazed by the speed of the approval process and, with funds secured, could quickly turn their focus back to their business and continue growing.
Steps to set yourself up for success
The end of year period sees the pressure on business owners increase with staffing shortages and cash flow challenges to cover increased demand throughout the festive period, or for others, business slows completely. This means small businesses can often benefit from access to additional funding throughout this period and to start the New Year strong.
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That’s why now is a great to time to start diversifying into commercial lending to ensure you’re equipped to support your small business clients. Here are three simple things you can start doing today to set yourself up for commercial lending success:
1. Understand commercial credit and the benefits to small business
There’s a range of funding solutions available so ensure you’re familiar with the product that suits each individual customer. Prospa has tailored lending products to support small business owners. Our key funding products include a business loan for funding of up to $500K and a business line of credit for flexible, ongoing access to credit.
To support SMEs throughout the end of year period, we also offer no repayments for the first eight weeks on Prospa Business Loans settled before 31 December 2022, so your clients could have the funds now with some breathing space. The loan term is extended at the other end (interest will accrue from settlement).*
2. Generate leads through existing and new channels
Start by having big-picture conversations with existing clients who are small business owners – many will have an opportunity in the back of their mind that they haven’t been able to take on because they don’t have access to capital or would benefit from extra funding throughout the end of year period.
Take time to think about how you currently generate business and how you can leverage existing channels. Many brokers generate business through word of mouth – existing customers, accountants or other referral partners – and through business networking groups and trade shows. You now have the opportunity to use those same channels to create awareness that you offer business lending.
Just by diversifying into commercial lending will open you up to new clients as well as create stickier relationships with your existing client base by being able to support them through all their funding needs.
3. Leverage the support and resources of lenders such as Prospa
By partnering with lenders such as Prospa, you gain valuable support from a dedicated Business Development Manager (BDM) and ongoing access to education, marketing support and resources.
Our team of local BDMs spend a great deal of time educating brokers on how to successfully diversify into commercial lending and provide ongoing support every step of the way. We also offer extensive white-label marketing tools and resources to help you generate leads and grow your business.
As a Prospa partner you can either choose to spot and refer your clients or be involved in the process from start to finish so the process is hassle-free, simple and flexible to accommodate for different partner requirements. We have a team of loan writers dedicated to supporting our partners and a premium team that can provide pre-assessments to set expectations for larger deals.
For more information on partnering with Prospa visit prospa.com/partners
*For business loans settled between 24 October 2022 and 31 December 2022. Terms and conditions apply.
^YouGov Research commissioned by Prospa August 2022.
