The head of a boutique aggregator has seen a steady increase in brokers’ uptake of SME lending, particularly since partnering with small business lender Spotcap.
Speaking to SME Adviser, the general manager of eChoice Blake Buchanan said that broker uptake of SME lending has “been on the steady increase”, especially since partnering recently with online business lender Spotcap.
“The Spotcap partnership is a solution for certain client need types. It solves a problem for brokers that need that type of finance,” he explained.
“But beyond just providing a need for that type of finance, we need the brokers to understand their consumers and identify the opportunity to deploy that solution to that consumer.
“Spotcap gives us an education piece for our brokers, so that we teach them to identify when that product solution might be required for their client, or might assist their client.”
Mr Buchanan elaborated that the aggregator has also been providing training around SME finance and commercial lending to its brokers, especially around identifying customers’ needs.
He provided an example of how brokers can identify a small business lending opportunity:
“So, when we talk to some of the new-to-industry brokers about a self-employed client for example, whereby a self-employed client that has a depreciable asset like a motor vehicle. Say that motor vehicle is three years old. Well, the broker shouldn't just be doing their residential loan transaction or their commercial loan transaction.
“They should be identifying that that vehicle runs out of depreciation benefits in that financial year, and then possibly provide an asset finance solution to that client.
“We understand that unless we empower brokers with information they would not otherwise identify that.”