Commercial Loans

Useful Tips

Commercial Valuations - Selecting a valuer firm

Going forward, a customer can request that a valuation be allocated to a specific Valuer firm on our panel at any time.

Where a property falls under our agreed fees for standard commercial securities, for example: Office space, Industrial or Retail properties. A list of our current accredited Valuer firms is available below. Note, if the customer does not have a preference, the valuation will be ordered via our valuation management system and outsourced to a Valuer randomly.

Commercial Valuer firms

Where a commercial property is deemed as “non-standard” it is important to highlight that ING will source up to three quotes from the list of our current accredited Valuer firms and provide these options to the broker to enable the customer to make a choice.

Three ways to diversify into commercial lending

With a SME commercial lending market worth an estimated $70bn a year to the big four banks1, building relationships with a commercial client base is an opportunity not to be ignored.

Yet, while the majority of brokers are adept at servicing their residential clients, a surprising minority have started to actually explore the commercial side of things.

Entering the commercial lending space for the first time may sound daunting, but it doesn’t need to be. Rather than taking a ‘start from scratch’ approach, you can leverage the resources you currently have at your disposal to evolve and promote your service proposition.

1. Tap into your existing client base

Build upon the relationships you have nurtured to date, be it with your current clients or professional services counterparts.

Look at your existing residential mortgage clients that could indicate that they are potential commercial investors. These may include business bank statements, business registration documents or a commercial borrowing history. Also consider clients with a broad residential portfolio – they may be open to diversifying into commercial property in future.

Business owners and clients with commercial interests tend to speak to their accountants and solicitors more regularly than residential clients do, so connect with your professional services colleagues to generate referrals and leads. If you don’t have a ready-made network, start building one by contacting the solicitor or real estate agent associated with your current loans, keeping them updated throughout the process and building relationships from there.

2. Focus on key market segments

Commercial customers vary substantially, ranging from one-person enterprises to multi-million dollar organisations. Rather than relying on a ‘one size fits all’ approach, you may find it helpful to specialise in one or two specific market segments.

Channel your efforts into building a presence in an area that interests you, whether it’s a particular industry such as healthcare or retail, or business size, such as companies with a $1 million turnover, or companies with less than 20 employees.

Focusing your efforts will help you grow your expertise in one area and may increase your chances of success in the commercial lending space.

3. Update your communications

You may have decided to diversify into commercial lending, but clients can only give you their business if they are aware of this fact.

Remember to communicate your proposition publically by updating your marketing collateral. At a minimum, this may include your website, business cards and direct mail newsletters.

Once you have identified who your potential commercial clients may be, you can continue to embed the message by engaging with them frequently, and reiterating your proposition.

Diversifying into the commercial property space may involve an investment of time and effort initially, but if you get your proposition right, it could reap valuable rewards for you and your business in the long term.

The information provided in this article does not constitute financial advice. Specific advice should be obtained from a suitably qualified professional before adopting any investment strategy.

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