Smaller broker groups have been "quick off the mark" to diversify into commercial lending.
Commercial lender Sintex has claimed that small broking groups holding their own ACLs have accounted for an increase in broker volumes for the company. Sintex general manager Cathy Dimarchos said a growing number of brokers are expanding their offering into commercial lending.
"We are seeing good quality business being sent to us that would normally go to the banks or other lenders," she said.
Dimarchos claimed that smaller aggregators and broker groups seem more prepared to diversify into commercial offerings, saying they had been "quick off the mark" to diversify.
"They don’t seem to face the same types of obstacles that larger companies face, they simply introduce the product to their product suite, tell their network and referral base that they now have a commercial loan offering and immediately see the enquiry level come through," she said.
Dimarchos said many brokers who have traditionally worked in the residential space now seem to be eschewing the notion that commercial lending is too complex.
"It’s a delight to see that brokers are breaking down the barriers and perception of commercial loans being difficult. With the Sintex Commercial Loan the process is simple and transparent and the team here is focused on service, which I suspect is the reason why we are seeing an increase in volumes and accreditations," she said.
She commented that the company's niche was "small ticket", non-specialised commercial loans, which Dimarchos claimed simplified the process for brokers and consumers.
"We have quick turnaround times - we always have - and this ensures a positive outcome all around," she said.
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