Branching Out - Resimac

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feature / commercial finance the company’s general manager, Cathy Dimarchos. “Within Sintex, the fee structure is transparent and simple,” Ms Dimarchos says. “The broker earns 0.5 per cent plus GST from the Customer Application Fee and a trail of 0.25 per cent.” Mr Pillai sees the financial benefits of commercial lending regularly himself. “We have found that brokers who branch out and diversify can actually increase their top line by 20 per cent,” he says. “It’s quite significant.” Commercial borrowers are also likely to be repeat clients. “Our statistics have proven that with each commercial loan written there is a home loan 20 / branching out curve,” he says, explaining that Liberty offers commercial property finance, debtor finance and commercial asset finance. Sintex too has a range of options. “We will consider all non-specialised security properties, including retail, office, warehouses, commercial and residential,” says Ms Dimarchos. Mr Lambrinos, however, believes that despite the range of products available, brokers often limit themselves by specialising in only one or two. “People haven’t done commercial finance properly in Australia,” he says, “yet now, there are 14 or 15 different products out there for business finance – and the majority are stand-alone, so “Our statistics have proven that with each commercial loan written there is a home loan written at least 48 per cent of the time as well” written at least 48 per cent of the time as well,” says Ms Dimarchos. “This not only increases the broker’s bottom line but also increases the longevity of their client staying with them.” PrODuCt raNGe Writing a commercial loan doesn’t have to be daunting, and according to Mr Pillai, brokers have many options. “Brokers can essentially pick the gradient of their learning you don’t need to offer your house or any property security.” MOre WOrK INVOLVeD? Mr Lambrinos concedes that commercial lending can involve more work than its residential counterpart. However, he also believes many of the banks are failing to cater properly for Australia’s businesses. “The banks have shrunk their sphere and all the smaller guys are falling off the planet, so no one’s servicing them,” he says. The advantage for the broker willing to consider this area is that it’s much easier to get out there and find the work. “The other advantage is that not every broker is going to have all the skill sets required to deal with commercial lending,” he adds. Despite the extra work needed to close a commercial loan, finding commercial clients doesn’t need to be incredibly difficult. Brokers should start by asking their existing residential customers about their businesses. “I think it is relatively straightforward,” says Mr Pillai. “It’s just asking a few more questions of the people who are already walking through your doors every day.” EasyBiz Finance, which specialises in business finance, also uses social media to penetrate the market. “We have a very, very strong social media presence,” says Mr Lambrinos. “We also do a lot of internet marketing where we follow people’s profiles on Facebook. “If someone starts complaining that they can’t get business finance, we’re able to track that. As long as we can legally find out who that person is, we make sure we contact them.” With 2.7 million businesses in the country, a growing range of products and increased support from lenders, brokers have a real opportunity to increase their revenue stream through commercial work.
A dominant force in the market Enhancements to RESIMAC’s specialist lending suite are set to support its strong market position in 2012 allan savins RESIMAC RECEntly completed a roadshow designed to share with customers the unique opportunities available in the current economic climate to write new business. “Through the provision of a white label wholesale mortgage offering, low interest rates, system support and a broad product offering, RESIMAC provides its customers with the tools to meet the diverse needs of Australian borrowers and enable mortgage brokers to target niche segments that have not been served in recent times,” says chief operating officer, Allan Savins. SpecialiSt lending “Being able to understand the specialist lending space, acknowledging that each specialist borrower is different, is what makes RESIMAC successful in this segment,” Mr Savins says. “RESIMAC’s dominance in specialist lending is unrivalled, highlighted by the rEsimac / pRofile allan SavinS chief operating officer breadth of policy and product parameters that cater for borrowers with clear or adverse credit, varying employment terms and alternative forms of income substantiation for the self-employed – just to name a few. “The unique nature of RESIMAC’s specialist lending products has been highlighted since the financial crisis, with many competitors having left the space or tightened their policies.” Specialist lending continues to be a focus for RESIMAC. This year, the company simplified and enhanced its offerings with an array of policy changes. Standout improvements to the specialist lending suite include a simplified borrower credit classification, increased maximum loan amounts and LVRs, unlimited cash out to 80 per cent LVR across RESIMAC’s three specialist products, simplified borrower credit classification and treatment of defaults, and overall credit appetite. A rate discount for continued good loan conduct is also provided to reward borrowers and improve retention. about ReSiMac Established in 1985, RESIMAC is a wholesale funder, originator and servicer of assets, primarily residential mortgages. The pioneer of Australian Residential Mortgage- Backed Securities (RMBS), RESIMAC’S first issue was in 1988. Since then, the company has issued over A$12.5 billion across 20 RMBS transactions and has continually been awarded a servicer ranking of ‘STRong’ by international ratings agency Standard & Poor’s. branching out / 21
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Branching Out - Resimac

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