When a mortgage adviser supports a client with a referral for commercial finance, both parties stand to benefit.
The client gains from being referred to a commercial finance broker who is trusted by their mortgage adviser. And the mortgage adviser adds extra value to their client, which in turn helps strengthen the adviser-client relationship.
So how can a mortgage adviser identify a commercial finance need in the first place – and then what do they do?
Mortgage advisers already have access to business owners who need commercial finance.
Our research estimates that 50% of an adviser’s current client bank will include an applicant who is a business owner. Of that 50%, 38% are likely to have a commercial borrowing need.
That means that around 20% of your current client bank is likely to have a commercial borrowing need.
How to Identify a Commercial Finance Need During a Client Fact-Find
Typical scenarios include a business owner who rents their existing commercial premises and may be looking to buy, or they may have outgrown their existing trading premises and are looking to expand into larger units or offices. Or they might be simply remortgaging, or they could be an investor with a growing property portfolio.
If you identify during a client fact-find that they are self-employed or a business owner, ask them about their goals. This can often uncover a need for commercial finance and an opportunity for you to make a referral.
Do mortgage advisers need experience in commercial finance to make a referral?
When you make a referral to Cornerstone Commercial Finance you’re not advising, you’re introducing. A mortgage adviser doesn’t need specialist knowledge in commercial finance, because once you’ve identified a potential opportunity for us to support your client you can refer them to us and we will do the rest.
Why Supporting Commercial Finance Needs Helps Client Retention
Supporting the business owners in your portfolio with their commercial lending needs is vital to your client retention.
Most commercial finance brokerages have in-house residential mortgage advisers, so if your clients are going elsewhere for their commercial finance then there is every chance that those brokers will try to take their residential business as well.
If you are able to identify that they may need support with commercial finance and signpost them to support then you’re adding value and helping to ensure that they remain loyal to you.
Commercial Finance Referrals Can Create an Additional Income Stream
As well as aiding client retention, supporting a client with a referral for commercial finance is a potential additional income stream.
As the introducer you stand to earn commission for making an introduction to a client who we support with commercial finance.
Why Advisers Choose Cornerstone Commercial Finance
Cornerstone Commercial Finance is FCA-regulated and NACFB Assured. Its team includes 22 commercial managers across the UK who between them have more than 430 years of commercial experience.
They support advisers in the Cornerstone Network through a simple referral process which ensures advisers are kept informed at every step.
