BOQ Head of Third Party, Karen Carter, addresses the increasing popularity of non-banks and non-major lenders amongst brokers.
As broker flows to major banks drop to record lows, BOQ Commercial Broker is responding by making it easier for brokers and their customers to do business.
As the recent findings of the monthly Broker Pulse survey by Momentum Intelligence highlighted, brokers are continuing to look beyond the major banks as the best option for their clients.
Despite the majors losing share with Australia’s non-major lenders, market share is up by 46.5 per cent according to the latest Australian Finance Group (AFG)’s index, brokers are writing record volumes of sales in what AFG Chief Executive, David Bailey, called ‘a sign of a healthy level of competition’.
Fast turnaround times are part of the appeal
At BOQ we’ve focused on turning deals around quickly with a consistent time to yes – on average five days for SME Commercial loans – assuming we have all the information we need - refer to our checklist on BOQ Commercial Broker Portal. The key to a positive outcome is always a quality handover combined with a real understanding of the customer upfront.
Just as it’s important for brokers to really understand their clients, at BOQ Commercial Broker we know that building genuine long-term relationships is vital to our success with the broker market. We’re growing our market share by continuing to deepen our relationships with brokers and their clients. We are also improving the experience for them with specialist expertise and lending options for SMEs.
We have been concentrating on improving BOQ’s SME offering, with significant changes for Commercial loans of up to $3 million, where we can now offer eligible clients*;
- Up to 30 year loan terms and 90% LVR for residential security
- Up to 30 year loan terms and 85% LVR for commercial security; and
- Up to 70% LVR for loans originated under our Lease-doc arrangement.
But whether it is a deal for $100,000 or $150 million, BOQ provides clients with two points of contact – a dedicated Relationship Manager and Business Development Manager.
Making straight through processing for asset finance easier
An example of how BOQ is making it easy for brokers to deal with us, BOQ Specialist has introduced an auto-approval and speedier loan documentation process to make asset finance purchases as efficient and streamlined as possible for specialists, medical, dental and veterinary clients.
All we need to assess the application is the application form, car invoice and/or equipment, identification and trust deeds. For clients that meet the eligibility criteria, we can have the documents back within hours and the broker’s client could be in their new car or using their equipment sooner. Finance approval for the purchase for eligible clients could be as simple as a phone call with their Broker Relationship Manager and an electronic signature on documentation. That means they get to focus on what they do best, while we help you take care of the rest.
For more information about how BOQ can back you as a broker to back your SME clients, visit www.boq.com.au/commercialbroker.
*For Small and Medium Enterprise (SME) with a Total Business Related Exposure (TBRE) of less than $3m and Total Aggregate Exposure (TAE) of less than $10m. SME, security type and loan purpose eligibility criteria applies (‘SME eligibility criteria’). A maximum Loan-to-Value ratio (LVR) of 85% and the 10 year interest only option applies to owner occupied commercial security, otherwise the maximum LVR is 80% and the maximum interest only period is 5 years. Where the SME eligibility criteria is not met the maximum Loan-to-Value ratio is 70% (non-residential and mixed security) or 80% (residential security), and the maximum loan term is 15 years (non-residential and mixed security) or 25 years (residential security). Applies to the Business Term Loan product only. Not available on Self-Managed Super Fund (SMSF) loans.