Commercial opportunities for brokers
Commercial loans provide tremendous business opportunities for brokers but are often missed as there remains confusion as to what constitutes a commercial loan, according to Brian Rubins, Director of Alternative Bridging Corporation (Alternative).
Rubins said, “There is often confusion as to whether a commercial loan is for a retail shop, or for a portfolio of assured shorthold tenancies (ASTs), or for a warehouse or factory, or for an owner-occupier or for an investor, for the property industry or the business community? Commercial loans are for all of these and all are great opportunities for an enterprising broker.
“Commercial loans tend to be larger transactions and brokers fish in a bigger pond where there is actually less competition.”
However, brokers new to commercial have a learning curve to perform their role, that being to identify and introduce opportunities, and to assist in the loan negotiation. Finding the best lenders is crucial to this.
“Commercial lenders advertise and promote their terms so it should be easy for a broker to learn who is the most suitable lender for each transaction. However, some lenders will say they lend but rarely do. Some smaller brokers can find packagers a helpful conduit but others will prefer to do the homework and control their own destiny.
To get the best assistance from a lender brokers need to identify how the process evolves. They need to gather appropriate information, present it in a concise manner, respond to queries to efficiently close a deal. The best lenders will lead them in the right direction.”
Business leads can come from introducer relationships with local solicitors, accountants, commercial estate agents and managers of High Street banks who need to find a home for the loans they cannot do.