Having seen lenders open up to commercial funding last year, Arnold is now working to help borrowers as this space closes up again
In sixth position for the second year running, Quattro Finance managing director Jason Arnold says he succeeds by keeping a close relationship with each client throughout the life of the transaction, as well as strong relationships with banks and non-banks.
Quattro Finance specialises in property development and commercial finance, with 80% of its business coming from commercial lending and the remaining 20% from residential home loans.
Arnold says last year saw banks and lenders open up to more business lending. The traditional banks expanded finance options for SMEs, and new banks entering the market provided competition. The development space, in which he writes the majority of his loans, was growing at a rapid pace, particularly in the non-bank and private sectors.
In commercial real estate as well, Arnold says there was strong appetite for commercial investment finance, especially for those with good tenants and longer-term lease covenants. Lenders were competing for this business, which was driving down rates and fees to historically low levels.
Since COVID-19, however, Arnold has seen new lending slow significantly, with lenders either closing completely or adjusting policies to minimise risk.
It is not all bad news, though. “There is still a strong pipeline of transactions, and once we get through these uncertain times, I am confident the lending market will rebound accordingly,” he says.
As the industry prepares for some tough challenges ahead, Arnold says his most important focus is on assisting clients to survive, helping them navigate the government assistance packages, specific lender hardship processes, and simply “being there to listen and provide general advice”.
“We must also keep a positive eye to the future and ensure we have the knowledge, processes and ability to assist with the regrowth period,” he says. “Finance will play a big role in rebuilding businesses, and we will need to work together to ensure we are providing the best options available to each and every client.”
Technology is also going to play a part in ensuring brokers can stay connected with their clients. While Arnold says tech has not yet had a huge impact on the commercial space in terms of increasing efficiencies, there have been significant improvements in a very short space of time out of necessity due to COVID-19.
As more mortgage brokers diversify into commercial, and finance brokers continue to expand and grow their businesses, Arnold says it is important not to rush.
“Building knowledge and experience takes time,” he says, advising that brokers seek out trusted advice and ensure their processes and procedures are continually adjusted.
Total value of loans settled: $140,254,494
Number of commercial loans settled: 24
Average commercial loan size: $5,843,937
Years as a commercial broker: 19
Aggregator: FAST
