It aims to help brokers tap into this oft-overlooked market segment
Aggregator network LMG has reintroduced a specialised training initiative designed to assist brokers in securing more business from self-employed clients.
The revamped program offers an in-depth exploration of new MyCRM features, aimed at streamlining and digitising commercial, asset finance, and residential deals and records within a single platform.
Currently in a pilot phase with 100 commercial brokers, the program includes tools to provide a comprehensive view of each client, visualise complex business structures, prepare commercial credit papers, and originate diversified applications.
The program also includes updated best-practice training on topics such as analysing business financials, Self-Managed Super Fund applications, construction and development finance, and cash-flow lending. Additional training modules cover the small and medium enterprise market, insurance premium funding, and tax debt management.
LMG’s national director of broker education, Louise Rainger (pictured left), emphasised the importance of equipping brokers with the knowledge and tools to diversify their revenue streams and grow their businesses.
“In revising our training and education on the self-employed market, we’ve tapped into the expertise across LMG’s commercial specialists as well as industry specialists,” she said.
According to the Australia Institute, around 15.7% of Australia’s workforce is self-employed. However, many brokers tend to overlook this segment, citing challenges in aligning irregular income and intertwined personal and business finances with lender policies.
Figures from the Australian Industry Group indicate that some industries have a higher proportion of self-employed individuals, particularly in sectors like transport, warehousing, and real estate. Over 40% of the agriculture sector, where land values have surged in recent years, is also self-employed.
Andrew Rose (pictured right), who launched Blue Rose Financial in late 2022, also highlighted the importance of catering to self-employed clients referred by financial advisers and accountants. He noted that focusing solely on residential clients can limit revenue streams and opportunities from referral partners.
“Commercial deals can take longer to materialise, but they are often worthwhile for brokerages,” Rose said.
Over the past 18 months, he has assisted clients in purchasing warehouse buildings, securing working capital, and funding business acquisitions involving freehold buildings. He added that when arranging commercial facilities for self-employed clients, he often manages their home loans as well.
“It might be a $10 million commercial property purchase, and as part of that, I’ll refinance $3 million in residential assets, which are commonly used as equity. Over the last 12 months, my business activity has been split 70/30 in favour of residential, but in the last quarter, it’s almost even — enquiry for commercial is growing every month,” he said.
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