Launch of an interstate alliance of commercial loans

The collective brokerage, lender recommendation and lending product selection expertise of two companies based in Sydney and Melbourne, respectively, is now linked after Marketplace Finance and My Local Broker (MLB) announced a partnership Thursday, November 17.

The new alliance with sub-aggregator MLB will see Marketplace Finance offer its commercial referencing services to MLB brokers, helping them diversify into commercial lending, Marketplace Finance explained.

Marketplace Finance is a full-service trade finance platform that offers “complete lending solutions” to brokers and their clients, he pointed out.

Its seamless white-label portal allows referrers to deliver a wide range of business products to clients, he added.

Covering all industries and featuring lenders in the Australian market, it “provides instant access to the big picture” with submissions ranging from investigation to settlement, he confirmed.

My local broker has access to bespoke loan solutions from “Australia’s best lenders”, he explained, with his local mortgage brokers providing “expert services” to clients in Albury, Ballarat, Bendigo, Geelong, Mildura, Shepparton, Warrnambool, Wodonga, Melbourne, Victoria and across Australia, he added.

It has access to more than 40 lenders and more than 500 products, he explained.

A Huge Opportunity with Commercial Loans

Speaking exclusively to The Adviser about the new partnership, Marketplace Finance responsible for third party relations and Founder of National Financial Brokers Day, Dino Pacella, said: “With only 30% of mortgage brokers taking out commercial loans, we at Marketplace Finance see this as a huge opportunity for us to continue to partner with quality businesses to help them expand customer base, increase revenue and protect existing customers through business loans.

“That’s why I’m thrilled that we’re announcing our latest partnership with the professional and forward-thinking team at My Local Broker.

“With our business referral offering now growing to nearly 2,000 referrals, we now want to be able to offer this service to MLB brokers and truly bring their business diversification to life.

“I want to personally thank Caroline Pollard and the entire MLB team for their great work in bringing this partnership to fruition.”

Brokers’ reluctance to “learn the trade”

My Local Broker’s National Sales Manager, Caroline Pollard of the Partnership, explained, “With so much uncertainty in today’s market, there has never been a better time for brokers to diversify their businesses and tap into alternative sources of income.

“Dino approached us at the perfect time.

“We found that many brokers are reluctant to learn commercial loansor prefer to focus only on resilience, while others want to learn but don’t know where to start.

“Marketplace Finance covers all the bases.

“We are convinced that this will be a fruitful partnership!”

Diversification of commercial portfolios

Earlier in the year, Mr Pacella clearly called the emerging advantage that commercial lending was rapidly becoming for various reasons.

He said that with the current interest rate hikes, rental issues, real estate market ups and downs and economic shifts, more and more consumers are heading to the buoyant commercial market.

“With greater awareness of the trading landscape, consumers are now looking to diversify their portfolios not only for potentially higher returns, but also for the old age investing strategy of not putting all your eggs in one. basket.“, he specified.

“There are several attractive advantages when it comes to commercial properties.

“Most of the time, we see commercial properties outperforming residential properties with higher yields.

“Landlords typically experience longer leases when it comes to commercial properties.

“These may not be the 10-year leases we saw before COVID-19, but they are certainly extended beyond the average leases for residential properties.

“Another interesting reason we see consumers turning to trading as an investment strategy is the greater tax benefits.

“This includes depreciation as well as landlords with minimum expenses (given that these are the responsibility of the commercial tenant, which is the opposite for residential properties).

At this point in mid-2022, Marketplace Finance had seen an increase in consumer interest in development projects, industrial premises and specialist premises such as nurseries, petrol stations and medical facilities, a- he declared.

“But with the benefits of investing in the commercial market come some downsides, and that’s why consumers are looking for clarity and relying on brokers more than ever,” Pacella recalled.

“I’ve always said that a broker’s market knowledge is their greatest asset, and being able to help consumers with those initial inquiries is critical to winning present and future business.

“Some of the downsides include that commercial properties are sensitive to economic conditions and this has been strongly highlighted by COVID-19.

“With vacancy periods comes the historical data of longer vacancy rates and the reputation that commercial properties are harder to sell.”

Mr. Pacella estimated that Marketplace Finance noticed that about 30% of consumers use brokers for trading purposes.

“As with consumers using brokers for home loans, I see the percentage of consumers using brokers continuing to grow and I predict we will see 40% by the end of 2023,” he predicted. .

[Related: In a dynamic commercial market, customers are increasingly relying on brokers]