Are you a mortgage or asset finance broker looking to increase revenue? The obvious way to do that would be to grow your client base but that’s easier said than done.

Have you ever considered expanding your product offering instead? You’ve surely heard about the importance of diversification, but perhaps you’ve dismissed the idea due to a lack of time or interest in learning entirely new products.

What if we said you could boost sales by offering small business loans to your existing self-employed clients, without having to become proficient in the space? In doing so, you’d improve customer satisfaction, retain clients long term and introduce a new revenue stream to your business.

Lenders like Bizcap can act as the experts on your behalf to give you the confidence to offer these products despite a lack of experience with them. To get started, here are three key steps to adding business loans to your portfolio.

1. Understand your clients

The first step is to look at your client base: how many of them are self-employed? If you’re a mortgage broker, it’s likely that about 40 percent of your database holds an ABN.

As small business owners, they’re likely taking out business loans either directly from lenders or through another broker. With just a little effort, you could earn a greater share of the wallet by acting on their behalf, and in doing so become their one-stop-shop for all borrowing needs.

Collate a list of your self-employed clients, so you know who you’ve got to work with.

2. Educate yourself and your clients

The next step is to educate yourself and your clients in SME loans. Let’s look at you first.

You’ll want at least a basic understanding of what SME loans are and where to find them. Banks are the obvious first choice, but there are a whole host of non-bank lenders you could work with, too. Bizcap is the most open-minded lender among them, able to service clients whose loan applications have been rejected elsewhere. We can also fund loans at unbeatable speed: approving $5,000 to $5 million in as little as 3 hours with minimal paperwork, and funding them that day.

You’ll also want to understand the process of applying for an SME loan. Obtaining loans from cash flow lenders like Bizcap is far less complicated than getting clients a mortgage, with minimal paperwork requirements. In fact, with just your client’s name, contact details and bank statements, Bizcap can make them a conditional loan offer – without even running a credit check.

Next, we’ll look at educating your clients.

Let your existing clients know that you now also offer small business loans. How? The easiest way is to send out bulk emails or SMSes. You don’t even need to write these yourself. Lenders like Bizcap provide brokers with email and SMS templates to alert clients of your new product offering, educate them in the solutions available for their financial needs, and outline eligibility criteria. All you need to do is copy, paste and send.

Download Bizcap’s email and SMS templates here.

You’ll also want to have conversations with your clients about your new product offering. Here are some tips for conversation starters:

  1. “How’s your business cash flow going?” The economy is hurting, so they are likely catching up on, currently facing or forecasting cash flow challenges. We find that the brokers who have the largest deal flow are those that ask this question.
  2. “What business opportunities did you say ‘no’ to in the last six months because you didn’t have the necessary funds? For example, buying bulk stock at a discount, refurbishing your premises or purchasing new equipment.” Your business owner clients may be forfeiting growth opportunities because they didn’t know they have access to the funds that would fuel them. By making them aware of the finances at their disposal, you could open the door to opportunities that will grow their business.
  3. “Are you looking to expand your business? What growth opportunities are on the horizon?” Perhaps your clients are already thinking about growth. If so, let them know you can help them access the funds they need to pursue those goals.
  4. “Have you been declined for a business loan in the last six to 12 months?” More than 66 percent of small businesses in Australia say they have not found it easy to access external finance, according to a recent CPA study. By asking your clients if they are struggling to obtain funds for their SME, you open the door to telling them about the wide range of lenders you work with – beyond the big banks – that can help. At Bizcap, we can assist clients who have been rejected for a loan because their business was too young, has past defaults or judgements, existing loans, ATO debt, or is facing other challenges. Make your client aware that there’s a lender for every borrower, and that you can find the best one for them.

A great time to initiate these conversations is when you’ve just secured your client a loan through your core offering. For example, when you’ve just secured them an asset, commercial property or residential loan. Strike while the iron is hot by asking, “What’s next on the horizon? What’s the forecast for the next six months in terms of cash flow or growth?”

3. Leverage the lenders

Take advantage of the expertise and support offered by the business development managers (BDMs), broker support and internal sales teams at non-bank lenders. If you don’t feel confident in your SME loan product knowledge, there are entire teams at lenders like Bizcap who are there to support you.

First, there’s the Tick ‘n’ Flick referral option. At Bizcap, we can shoulder the workload on behalf of brokers, acting as the expert on your behalf. Through this route, a Loan Specialist with experience in lending to the industry and case type of your client engages directly with them to explain our product and handle the deal process from start to finish. By utilising our Tick ‘n’ Flick route, brokers can earn commissions without managing the deal themselves and enjoy trail commissions from repeat deals.

Mortgage brokers and other financial professionals who don’t specialise in SME lending find Tick ‘n’ Flick especially valuable, as they can add SME loans to their repertoire without having to become experts in cash flow lending. In addition, they value this route as our conversion rates are some three times higher than broker-managed deals, thanks to the intimate product knowledge of our Loan Specialists.

Brokers always have the option to manage the deal flow if they prefer, and can do this with confidence by leaning on our broker support function. Every Bizcap partner is allocated a BDM as their primary point of contact and they also gain access to our dedicated broker support team. This ensures seamless communication and assistance for brokers regarding queries about commissions, sell rates and sales strategies. Our dedicated broker support specialists are available all day every day to answer brokers’ calls, workshop scenarios, provide advice on client conversations, follow up on stipulations, secure approvals and ensure efficient funding.

Have you ever referred a client to another broker to assist with a business loan enquiry? Rather than doing that, become their one-stop-shop for all their financial needs by referring them directly to a non-bank lender. With just their name and phone number, Bizcap can act on your behalf and pay you the commissions, rather than the other broker you referred them to. You’ve worked hard to obtain a client; don’t risk losing them. Lean on the lender’s Partnerships team to give you the confidence to add SME loans to your product and service offering.

The brokers we see successfully increasing revenue without needing to grow their client base are those who stop describing themselves as asset finance brokers or mortgage brokers and instead brand themselves as finance brokers.

If you’re interested in learning more about how to add SME loans to your product and service offering, get in touch with one of our BDMs today by submitting your contact information here.

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