23/01/2024

How private lenders can help brokers elevate their brokerage

If you are a broker looking to take your broking business to the next level, then partnering with private lenders is something you may want to consider. This is especially true when it comes to servicing commercial clients.

Mortgage brokers or accountants that understand what SMEs find important when seeking funding are in a prime position to improve their customer service and increase clients’ satisfaction.

Here are seven reasons why partnering with private lenders benefits brokers.

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Better Client Outcomes

1) Better Client Outcomes

Private lenders often have more flexible underwriting criteria compared to traditional financial institutions like banks.

For SMEs that need funding within a strict deadline, speed and flexibility are paramount for business operations.

By partnering with private lenders, brokers are able to find tailored solutions that better suit their clients' unique financial situations, resulting in more favourable outcomes for clients.

2) More Approvals

Traditional lenders may have strict eligibility criteria, leading to rejections for borrowers with unconventional financial profiles. Unfortunately, self-employed small-business owners are sometimes categorised under the unconventional profile, making it difficult for them to meet serviceability requirements.

Private lenders, on the other hand, consider other factors instead of serviceability, which provides more options for small businesses. Brokers can benefit from a broader range of lending options, increasing the chances of approval for their commercial clients.

3) More Flexibility

Moreover, private lenders typically have more flexible terms and conditions. This flexibility can include adjustable repayment schedules, interest rates, and collateral options.

Therefore, brokers can present their clients with more tailored and personalised loan structures.

4) Better Service

Private lenders often operate with a more streamlined loan application process compared to larger financial institutions. Brokers working with private lenders can provide clients with a more personalised and efficient service, with much faster communication between lender and borrower.

5) Faster Turnarounds

As a result, private lenders can offer faster approval and funding processes due to their streamlined operations and less bureaucratic red tape. This can be particularly advantageous for clients who require quick access to capital.

Brokers can capitalise on this speed, providing a competitive edge in the market.

6) Referrer Fees

Private lenders may offer attractive commission structures or referral fees to brokers for bringing in business. This means that brokers can significantly boost their revenue stream by exploring and maintaining relationships with private lenders.

7) Developing Long-Term Client Relationships

Long-term client relationships By consistently delivering positive outcomes, quick turnarounds, and personalised service, brokers can build trust with clients. Working with private lenders allows brokers to offer a wider range of tailored, financial solutions.

This helps foster long-term relationships with clients who will no doubt appreciate their broker’s ability to meet their diverse borrowing needs.

About Private Mortgages Australia

Private mortgages Australia specialises in providing tailored, finance solutions to SMEs. Among

PMA’s most popular loan products are the following:

At PMA, we have strong working relationships with our brokers and referrers, working closely to understand their clients’ needs and develop a tailored solution that will deliver the best results for all parties.

Brokers with successful referrals receive referrer’s fees within 24 hours of loan settlement with no clawbacks.

Because PMA is channel agnostic, if a borrower goes to PMA directly to take out a new loan, the original referrer will still get paid referrer fees.

For more information on PMA’s referral program, you may visit the referrer’s page.

If you are a broker and have a business lending scenario you would like to discuss, or, if you have queries on any of PMA’s commercial finance products, feel free to contact us or you can complete our Quick App form here (< 10 mins).