Commercial lending typically generates higher commissions than residential loans, with some complex deals earning up to 6% versus the standard 0.5-0.7% for home loans.

Understanding diverse commercial products creates multiple revenue streams and stronger client relationships.

Construction Finance

Offering both residential and commercial construction loans, including land banking, development finance, and progress payment facilities. This specialised lending requires an understanding of project feasibility, builder credentials, and construction risks, commanding premium broker fees of 1 to 2% of the total loan amount.

Private Lending

Accessing non-bank lenders for deals that traditional banks won't fund, including bridging loans and mezzanine finance. Private lending often offers faster approvals and more flexible terms, though at higher interest rates, filling crucial market gaps.

SMSF Commercial Loans

These loans help self-managed super funds purchase business property through limited recourse borrowing arrangements. This complex but growing sector requires specialised knowledge of superannuation law and commercial property markets, creating valuable niche expertise.

Trade Finance

Helping businesses finance imports/exports and manage international payments. This includes letters of credit, bank guarantees, and trade loans, which are crucial for companies engaged in international trade.

Receivables Finance

Offering invoice financing and debtor finance solutions allows businesses to access working capital by leveraging their accounts receivable, improving cash flow management.

Business Acquisition Finance

Structuring loans for business or franchise purchases, including goodwill lending and leveraged buyouts. This expertise is valuable for clients looking to expand or enter new ventures.

Asset and Equipment Finance

Arranging finance for machinery, vehicles, and specialised equipment. This recurring need creates regular engagement opportunities.

Short Term Business Loans

Providing quick funding solutions for immediate business needs, from inventory purchases to unexpected opportunities or paying overdue tax debt. These loans typically process faster than traditional bank loans and can be crucial for time-sensitive situations.

The product diversity in commercial finance creates multiple touchpoints throughout the year, unlike residential clients, who might only make contact every few years. Each interaction strengthens the client relationship and opens cross-selling opportunities.

Brokers who master these various products become indispensable business advisors rather than just loan facilitators. This comprehensive service approach significantly reduces client churn and builds a sustainable commercial finance practice.

The complexity of commercial lending creates a barrier to entry, meaning less competition than in the residential space. Brokers who develop commercial expertise can establish themselves in a less saturated market segment, commanding higher fees while providing valuable services to their business clients.