1. Why Diversify into Commercial Lending?
Brokers who only offer one type of lending may be missing out on substantial opportunities. Commercial lending includes various financial solutions that help businesses grow, acquire assets, and manage cash flow. By expanding your expertise, you can:
- Offer a wider range of financial solutions to your existing clients.
- Increase revenue streams with higher-value transactions.
- Build stronger client relationships by supporting their business finance needs.
2. Key Areas of Commercial Lending
- Commercial Property Finance: Businesses and investors often need funding for purchasing, developing, or refinancing commercial properties. Brokers who understand lending structures for offices, retail spaces, and industrial sites can capitalise on this market.
- Asset Finance: Companies require funding for vehicles, equipment, and machinery. Asset finance allows businesses to acquire essential tools without large upfront costs, making it an attractive option for many industries.
- Trade & Debtor Finance: Trade and debtor finance help businesses manage cash flow by financing outstanding invoices or trade transactions. This type of lending is essential for industries with long payment cycles.
- Working Capital Loans: Short-term loans designed to help businesses with operational expenses. These solutions are essential for companies experiencing seasonal fluctuations or growth phases.
- Insurance Premium Funding (IPF): IPF allows businesses to spread the cost of annual insurance premiums over monthly installments, improving cash flow and budget management.
3. How to Get Started with Commercial Lending
- Step 1: Leverage Your Existing Client Base: Many of your current clients may be business owners or investors who need commercial finance solutions. Start conversations about their broader financial needs.
- Step 2: Partner with an Aggregator Offering Commercial Support: Connective provides brokers with access to commercial lenders, training, and dedicated BDMs to help navigate the complexities of commercial lending. Find out more here.
- Step 3: Build Relationships with Key Referral Partners: Establishing connections with accountants, financial planners, and real estate agents can open doors to commercial lending opportunities.
- Step 4: Invest in Education & Training: Understanding lender policies, structuring commercial deals, and staying up to date with market trends is essential. Webinars, courses, and mentorship can accelerate your transition into commercial lending.
- Step 5: Use Technology to Streamline Processes: Platforms like Mercury Nexus offer workflow automation, client management, and financial analysis tools to support commercial brokers in handling complex transactions efficiently.
4. Trends Shaping the Commercial Lending Market
- Sustainability & ESG Lending: Green financing is growing, with businesses prioritising sustainable buildings and eco-friendly solutions. Brokers can add value by advising clients on energy-efficient property finance
- Increasing Demand for Industrial & Logistics Properties: E-commerce growth is driving the need for warehouses and distribution centers. Industrial finance is becoming a key area of focus for commercial brokers.
- The Rise of Mixed-Use Developments: More urban developments are blending commercial, residential, and retail spaces. Brokers who understand mixed-use finance structures will be well-positioned to assist investors and developers.
- Technology & PropTech Advancements: AI, blockchain, and big data are transforming how commercial deals are assessed and processed. Brokers embracing these innovations will gain a competitive edge.
5. How Connective Supports Commercial Brokers
At Connective, we provide the tools, resources, and lender partnerships brokers need to succeed in commercial lending. Our award-winning support includes:
- Access to 70+ Lenders – Covering property, asset finance, trade & debtor finance, working capital, and IPF.
- Dedicated BDM Support – Expert guidance on structuring and submitting commercial deals.
- Comprehensive Training & Webinars – Helping brokers build confidence and expertise in commercial lending.
- Advanced Technology Solutions – Mercury Nexus streamlines deal management and workflow automation.
Take the Next Step
Diversifying into commercial lending is an opportunity for brokers to future-proof their business, expand revenue streams, and build long-term client relationships. With the right knowledge, tools, and aggregator support, you can successfully transition into this lucrative market.
Ready to get started? Contact Connective today to learn more about our commercial broker support.
