Branching Out - Resimac

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introduction to sell their business for a higher amount when they leave the industry. “I truly believe brokers who want to run a business cannot be ‘mono-line’ service providers,” he says. “If you want to sell your business for a higher recurring trail when you leave the industry, you must have multiple streams of income.” Generally speaking, a mono-line business is worth anywhere between 1.2 and 1.8 times a broker’s recurring trail. However, businesses that diversify can earn up to 3.5 times recurring trail. “Those that integrate general insurance, risk insurance or property management into their business can be assured of earning higher multiples,” Mr Brown says. Financial planners are also attracted to books that earn good revenue from insurance and property management. Not only can these clients be cross sold to, but they are also likely to need or require the skills of a planner. “With less residential mortgage business coming through a broker’s door, it is important that they look for other business opportunities” 06 / branching out Finally, diversification helps strengthen a broker’s value proposition. Having a diversified offering allows a broker to more effectively meet the financial needs of clients and this in turn is likely to support their retention long-term. Safeguarding your databaSe Client retention is arguably the most important reason for diversifying, according to Ballast’s general manager, Frank Paratore. “In today’s market, it is more important than ever for brokers to protect their database,” he says. “Banks are hungry for business. They will have no problems offering additional products and services to a broker’s client. “Broker’s that don’t diversify aren’t creating sticky clients.” So many brokers still see themselves as being “transactionally based” rather than “relationship based”, Mr Paratore says. “A broker has a relationship with their client, and the sooner they understand this, the better they will do. If you do the right thing by your client, your business will benefit as a direct result.” Today’s clients need their brokers to be a one-stop shop, he says, but broadening a service offering needs to be done carefully and strategically. What can be done in-house? What should be outsourced? Will adding this or that product stretch resources too thinly? Leveraging existing clients and relationships will, however, go a long way to establishing a genuinely diversified offering.
Supporting SMSF-backed property investment St George Bank Group’s SMSF product is making the SMSF loan process easier both for brokers and clients The self-managed super fund (SMSF) space now represents a huge opportunity for brokers. We know that the volume of SMSFs is growing at a significant rate and we also believe we have one of the best SMSF home loan products in the lending marketplace. In Australia, real estate has been regarded as a solid investment for several years now – of course, there are always going to be fluctuations but, in general, both capital growth and investment stability have been evident for time. No two property investors are alike, however, and while profile some may be first time buyers, others may be eyeing purchasing by borrowing via their SMSF. This is a great opportunity for brokers to talk to them about using our SMSF home loan to achieve their goal. Why is our SMSF home loan different? It’s simple and easy to understand We have a dedicated SMSF home loan team of assessors within our broker mortgage service team Interest offset is available on variable rate loans, providing the flexibility to accumulate and access additional funds while helping customers to save interest on their loan Up to 80 per cent LVR We allow clients to refinance their current SMSF home loan A draft security custodian deed acceptable to the Bank is available on our partners’ websites We also understand there is often a substantial investment involved in setting up an SMSF home loan so to make it easier for you, we’ll do an approval in principle without a structure being formalised. This allows the client to gain approval before going to the expense of setting up the formal SMSF structure. To find out more, please contact one of our BDMs. They are all subject matter experts and can assist you with any SMSF home loan questions you may have. Alternatively, please call Mortgage Central on 1300 137 532. BranchinG out / 07
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Page 5 and 6: Winner of Wholesale Aggregator for
Page 7: Moving into new areas might be a da
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Page 13 and 14: Do better with a St.George Super Fu
Page 15 and 16: Insurance Is one of the most freque
Page 17 and 18: Protection and peace of mind Integr
Page 19 and 20: Borrower set rate for 12 months. In
Page 21 and 22: services and start saying, ‘Well,
Page 23 and 24: A dominant force in the market Enha
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Page 27 and 28: Why target specialist and non-confo
Page 29 and 30: Self-managed super funds are the fa
Page 31 and 32: SMSF Loan 70% LVR No upfront fee;
Page 33 and 34: A Smart Solution for Self Managed S
Page 35 and 36: Motoring to success Motor vehicle l
Page 37 and 38: Leasing and equipment financing isn
Page 39 and 40: Go the extra mile on cruise control
Page 41 and 42: Put it on the bill Story / Emily Mc
Page 43 and 44: Q A & Suresh Pillai, Liberty Financ
Page 45 and 46: Quick cash, long-term gains Story /
Page 47 and 48: Which direction will you choose whe

Branching Out - Resimac

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