Do Residential Brokers Need an Aggregator to Go Commercial?

Diversifying to commercial lending is much simpler than it initially appears. Residential brokers will not need to leave their aggregators and they do not need to spend years studying an accounting degree to diversify and serve their clients in need of commercial finance.

It all starts with asking your aggregator

As Gandhi said, “If you don’t ask, you don’t get it”.

Many residential brokers assume they can never go off-panel. But that is only because most residential brokers have never asked the question.

If you have an opportunity to assist your commercial client, just ask your aggregator what the process is for you to be able to do so. More often than not, it could just be a matter of informing your aggregator or maybe filling in a form. It may be that simple.

Start building your commercial network

For some residential brokers, the thought of diversifying to commercial lending is already overwhelming. Most are not sure where to begin. The assumption is that they can’t service their commercial clients if they are not an expert in commercial lending.

However, the truth is again much simpler than the assumption. Residential brokers who already have SMEs/companies within their database, with little to know experience about commercial lending products are always able to take advantage of the expertise of other entities like private lenders who specialise in commercial lending. Many private lenders do low doc or no doc loans, therefore brokers may not require to provide evidence of servicing or complete servicing exercise

Most private lenders have referral programs that provide commissions to brokers who refer clients to them. Therefore, simply introducing clients to these lenders can allow brokers to start earning additional commissions once the loan settles while still retaining their clients trust and their ongoing business.

At Private Mortgages Australia, for instance, we work closely with referring brokers to assess the specific requirements of clients and to craft customised solutions based on their situation. Most importantly, PMA is channel agnostic which means, should your client come to us directly after your introduction, we will always pay you the referral fee you so rightly deserve for all your clients’ opportunities going forward.

Once the loan is settled, you as the referring broker, will receive your commission the next business day.

At PMA, we take pride in being transparent about our fees and charges, so there are no hidden fees and unlike some residential loans there is no possibility of an unexpected clawback.

We are also very accessible and approachable - Referring brokers will not have to answer all the questions a commercial client may have since PMA can walk both parties through the entire process.

Partnering with private lenders is a great way for residential brokers to venture into the commercial sector, make clawback-free income, while at the same time learn about the common challenges borrowers may face when looking for business loans and also learning the different finance solutions offered by lenders.

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).