A strong year in commercial lending has offset the difficulties in the residential space for the director of Hawthorn Finance
.JPG)
Working out of Hawthorn, Victoria, managing director of Hawthorn Finance, Daniel Zadnik, offers another wide range of commercial finance options: working capital, property finance, development funding, agricultural lending and asset finance.
A broker for the past 11 years, Zadnik spent nearly 20 years in corporate and business banking at ANZ before that. A role he says gave him the experience to be where he is today. It also introduced him to Mclean Delmo, where he was given the opportunity to become a shareholder in Hawthorn Finance.
Subsequently Mclean Delmo joined the Bentley’s national accounting group which enabled the business to establish Bentley’s Finance.
The dual brand has continued to grow over the past 11 years; it now employs eight people. Zadnik says the growth is because their clients trust them and they are able to have frank discussions where the banks do not.
Bentley’s Finance is opening a new rural office in Emerald, Central Queensland, opening this month. “People in these communities tend to embrace the local more so than someone coming out of the city,” he says. “They want someone that’s going to know their town and their business and they don’t want someone rocking up from the city in a suit telling them how to do things.”
While the past 11 years have seen growth, Zadnik has not been immune to the struggles of the last 12 months in the home loan space. But the strong commercial lending and asset finance has offset the lower residential volumes, he says.
Unlike some of the other brokers, Zadnik continues to use the major banks, because they are more cost effective which lower costs of funds than second tier lenders and alternative providers. “That said, we have certainly developed some good working relationships with some alternate lenders who we use when the metrics don’t tick all the boxes for the mainstream banks,” he adds.
Now the royal commission report has been released, Zadnik expects its impact to continue for the foreseeable future, with lending and economic conditions remaining subdued for the next 12 to 18 months. But he does think it will widen up eventually. “Once the dust settles after the election and the banks deal with the royal commission recommendations, they will then need to refocus their attention on growing their businesses again,” he says.
While lending does remain subdued however, Zadnik says this is a good time for brokers.
“For good brokers this will create opportunities to work closely with both new and existing clients who will need guidance,” he says, adding that without diversifying his business to help his clients he would not have grown his business to where it is today.
Total value of commercial loan settlements: $108,474,000
Number of commercial loans settled: 35
Average commercial loan size: $3,099,257
Years as a commercial broker: 12
Aggregator: FAST
