Commercial borrowers often have multiple, interconnected goals that shape their funding needs.
While home loan customers generally have a handful of core objectives, commercial borrowers may balance property acquisition, business growth, refinancing, or cash flow needs.
For brokers, taking the time to understand a customer’s broader circumstances could help uncover funding solutions that align with both immediate needs and future ambitions.
Understanding customer goals
The best commercial conversations start early, before the discussion turns to structure or product.
Liberty group manager – commercial, Matthew Heinnen, says understanding where a business is heading can help uncover opportunities a straight funding request might overlook.
“Commercial lending involves understanding the priorities influencing a customer’s funding requirements across different stages of their business journey,” he says.
“A customer might want to buy premises, free up working capital and restructure existing facilities all in the same conversation. Being clear about what’s achievable today, and what can follow as the business grows, usually gets a better result than pushing for everything up front.”
Looking beyond the borrower
There’s usually more than one voice behind a funding request. An accountant, or a financial or business adviser, has often helped shape what the customer is asking for by the time it reaches a broker.
“Commercial customers rarely operate in isolation. Many rely on advisers to guide business decisions,” Heinnen says.
“Engaging with that network helps create a clearer picture of the borrower’s situation.”
Connecting with specialist lending support
Commercial deals throw up varied scenarios that don’t come up often, and no broker is expected to have seen all of them.
“Having access to experienced commercial lending specialists can help brokers explore solutions they may not have previously considered,” Heinnen says.
“At Liberty, we continue to maintain a specialised commercial BDM team that understands the nuances of commercial lending, and can help brokers work through more unique scenarios.”
Looking beyond traditional verification
Not every business is accurately represented by its historical financials. One may have worked through two difficult years before securing a contract that materially improved cash flow. Another may be long-established and stable but structured in a way that understates its underlying performance.
In both cases, the financials on file reflect where the business has been rather than where it’s heading.
“Many lenders assess borrowers through either a full doc or low doc framework, but some scenarios benefit from a broader view of the business,” Heinnen says.
“For businesses whose recent performance may not be fully reflected in historical financials, Liberty’s Express solution allows eligible borrowers to access full doc options using alternative verification such as accountants’ declarations, BAS and bank statements.”
Liberty’s Established Business Benefit recognises the strengths of established businesses, giving brokers additional ways to assess a business’s current position and future potential.
The value of a broader perspective
Great commercial outcomes often come from a few habits. Understand the goal, involve the advisers, and engage the lender early.
Get those right and the harder scenarios start falling into place.
