With residential lending becoming increasingly competitive, commercial lending is presenting a significant opportunity for brokers looking to expand their offering. Demand continues to grow as more businesses seek flexible funding solutions and borrowers increasingly rely on brokers to navigate complex lending scenarios.
Commercial lending activity continues to strengthen, particularly among:
As traditional banks become more selective, borrowers are seeking lenders who can take a more practical, case-by-case approach.
Brokers are seeing particularly strong demand for:
Industrial property continues to outperform many other sectors, while retail remains more location-dependent.
Unlike residential lending, commercial finance is rarely a one-size-fits-all solution.
The right loan structure can have a significant impact on both approval and long-term outcomes. Depending on the borrower's circumstances, this may involve:
A well-structured application not only improves efficiency but helps ensure the finance aligns with the borrower's broader business objectives.
While pricing remains important, commercial borrowers are often more focused on:
Despite brokers writing around 77% of residential mortgages, only a relatively small proportion actively write commercial loans.
For brokers prepared to build their knowledge, commercial lending offers an opportunity to:
The takeaway: As commercial lending continues to evolve, brokers who expand their expertise across commercial, SMSF and private lending will be well positioned to support increasingly sophisticated borrowers while growing a more diversified business.
Whether you're exploring your first commercial deal or expanding your commercial offering, your Connective Lending Manager or Connective Advance BDM can help workshop suitable lending structures and opportunities.
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