A major aggregator has announced the launch of a new commercial referral program for brokers, which it says will help brokers diversify their business and keep their clients sticky.
At the Vow Financial mini-conference held in Sydney yesterday, Tim Brown, the chief executive of Vow told Australian Broker
that the commercial referral partnership will allow brokers to service the commercial needs of their clients, without having to take time out of working on their core residential business.
“[The commercial referral partnership] means [brokers] can access someone who has the necessary commercial expertise who can complete the deal,” he said.
“What we don’t want is our brokers getting tied up on corporate commercial deals that they don’t understand, spend a lot of time on, then loose the deal and potentially take the focus from what they do best which is writing residential.”
“Commercial funding and lending is a very different proposition to a residential loan. You’re getting into balance sheets, cash flow statements and other things generally not required in the residential space.
“We’ve had brokers who have worked on a commercial deal for six months, which has taken the focus off residential. But then had the deal fell over and then they have no income because they haven’t been focussing on their core business.”
The commercial referral partnership, which it set to be launched in about one month, will also offer brokers a referral fee for referring the client to Vow Commercial.
“What we are doing is giving [brokers] the ability to access that expertise and still earn something from the transaction,” Brown told Australian Broker
“Brokers are great at identifying the client; they find the client with the need. The question is: can they execute on it? Vow is allowing them to get the execution of the loan done by the experts so they can stick to the residential stuff,” Yellow Brick Road executive chairman, Mark Bouris