Some might feel there’s something very ‘old school’ about the willingness to pick up the phone about a deal.

Brokers might go the email route too on a quick enquiry, but knowing the right person at the right lender to contact in order to work through a problem has always been key to success in the short-term commercial lending market.

Unregulated bridging lending has always been relationship-driven at its heart. From finding out lender appetites for deals to getting a view on development or exit strategies, debating the angles with an expert can only benefit clients.

To brokers with years of commercial experience or those with none, I say the same thing: picture me as if I’m sitting at a desk in the corner of your office.

But instead of just shouting it across the room, you’ll be picking up the phone instead. I’m an extension of your business – and will always offer guidance to help you with the next deal.

The discussions always vary, but the intention is the same – never to miss an opportunity. From HMOs to conversions or diversifying a portfolio, any conversation is a starting point to the solutions we can offer.

If you can help a client with a commercial loan, you’ll also get a look at their residential cases, not to mention friends and families’ deals and insurance.

The fear is sometimes that brokers feel they need to know how to do everything. They don’t. But they do need to know who to call to get the information needed to help the client with the next steps.

Open your mind

A market-leading lender will pride itself on its expertise, willingness to educate and share market knowledge.

One way to get inside a deal and talk it through is on a site visit. Walking through a potential project is the best starting point for any financing discussion to understand its nuances and explore all potential repurposing angles to a deal.

At ASG Finance, our approach is flexible – brokers can be as involved in a deal as they feel comfortable.

Whether they want full control and management of the client relationship or prefer to take a step back while we handle it, their income from the deal remains unaffected.

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For brokers who prefer a more hands-on role, they can manage the deal entirely while we provide support and expert consultation on aspects such as the local market or exit strategy.

Alternatively, we can take on the client relationship while keeping the broker fully informed throughout the process. Either way, the broker retains their earnings without compromise.

Revolving credit deepens relationships

A revolving credit agreement could also be a useful tool for developers in need of a ‘hunting’ fund or aware that a project will lead to more investment further down the line.

The revolving credit facility allows property owners to draw down, repay, and redraw funds as needed over time, with security already in place from another property purchase, enabling quick access to capital without additional due diligence.

The cash is ring-fenced, and no non-utilisation fee is charged if unused.

Into the unknown

Diversification of both business type and customer is the way to drive your business forward.

Installing a specialist commercial or bridging broker in your office is one way to do that. But there’s a strong business case for avoiding those costs by broadening your firm’s expertise away from pure residential.

Plenty of brokers might say commercial cases don’t cross their desks. But I would say dig deeper into individual deals and also client banks to explore these avenues more carefully.

Everyone has commercial clients; it might just be that the client isn’t aware the broker can help them.

Taking a commercial view

Rightmove’s recent Q4 commercial tracker index showcased the increasing size of the strategic opportunity this year.

It noted the ‘surge in demand’ to invest in commercial property is up 28% year-on-year, the biggest shift since Q2 2021.

It shows a big recovery for the investment sector as the start of the rate-cutting cycle has made opportunities look more affordable and attractive.

At a regional level, the biggest increase in investment in commercial property overall has been located in the East Midlands and London.

Demand is being led by industrial listings, fuelled by online shopping and warehousing, which are up 72% against Q4 2023.

Offices have also seen a significant rise, with demand increasing by 57% year-on-year.

The commercial and development business deals are out there and can only grow, so it’s a question of positioning the firm and your services to receive them.