Brian Rubins

Brokers missing out on deals due to commercial finance confusion

Brokers are often missing out on deals due to confusion over what constitutes a commercial loan, a lender has warned.

Brian Rubins, director of Alternative Bridging Corporation (pictured above), suggested that intermediaries may be unsure whether commercial loans are used for a retail store or industrial property for a portfolio of assured shorthold tenancies.

Besides property, brokers may also struggle to identify whether the loan is for an owner-occupier, investor or the business community.

“Commercial loans are for all of these and all are great opportunities for an enterprising broker,” explained Brian.

“Commercial loans tend to be larger transactions and brokers fish in a bigger pond where there is actually less competition.”

Brian revealed that brokers new to the commercial sector must identify and introduce opportunities, as well as assist in the loan negotiation.

Brokers are advised to gather appropriate information, present it in a concise manner and respond to queries efficiently in order to close a deal.

Certain lenders may also help lead brokers in the right direction.

“Commercial lenders advertise and promote their terms, so it should be easy for a broker to learn who is the most suitable lender for each transaction,” added Brian.

“However, some lenders will say they lend but rarely do.

“Some smaller brokers can find packagers a helpful conduit, but others will prefer to do the homework and control their own destiny.”

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