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HOW TO HELP YOUR COMMERCIAL FINANCE APPLICATION SUCCEED -THE THREE CRITICAL FACTORS

These days, whether you are borrowing 0,000 for your first Propery Development or Refinancing a ,000,000 Equity Line of Credit, it’s all about a few critical factors in determining the Funding Application outcomes. Understanding these will give you a much improved chance of obtaining commercial funding.

RISK: It may well be a great Project, but if there are delays, cost increases, lower Sale prices, how will the Lender recover their money?

REWARD: See above. Lenders actually lend money to make a profit. Sounds obvious, but many borrowers forget this at their peril.

EQUITY: If you can demonstrate you have a significant amount of your own funds invested in the Project it always helps in getting to the front of the queue. After all, if the Lender wanted to build anything from a Rainforest Retreat in the jungle to an Apartment Complex in Adelaide using 80%, 90%, or 100% of borrowed funds , they could do it themselves.

SUMMARY: Various weighting factors & averages are applied to all the above. Knowing how to present this information is a key element, and can add much to your chances of success.

http://www.commercialfinance.org.au

FINANCE BROKERS! *We have an excellent program to assist you*

Finance Broker Support   (“ABR” program)

Commercial Finance Comparison Lenders offers a full service back-office and deal management solution for professional finance brokers ( i.e. professionals engaged in regularly arranging finance on behalf of clients, for reward ).

The principle behind this service offering is that a professional finance broker is able to focus on obtaining and maintaining clients / relationships, while Commercial Finance Lenders handles the “admin” or “packaging” and “follow-up” elements of an application.

Professional finance brokers interested in this service are invited to join the Finance Broker Support program as an Authorised Business Referrer ( “ABR” ), and instantly receive the benefits of our complete back-office support structure. Our ABR network is growing to be one of the largest in the country – and the value of being part of a winning team under a recognised brand is becoming more and more critical for any independent broker or arranger of finance wanting to survive in this changing economic climate!

How does one go about submitting finance applications through Commercial Finance Lenders as an Authorised Business Referrer ( “ABR” )?
Simply follow the three steps below, and Commercial Finance Lenders would be delighted to assist with your clients’ applications:

1. Apply with us to Register as an “Authorised Business Referrer”, and you will receive contact from our office within one business day;

2. We may require some basic information ( profile / brief CV + registration / MFAA information ),

and upon receipt / approval will activate your ABR registration. Registration is free and instant (upon activation );

3. Submit applications on behalf of clients – Simply log in ( if you haven’t already ) and complete the very basic one page finance application / information form.  

How does the submission of client transactions / applications work in practice? Commercial Finance Lenders simply requires an ABR to log in and complete + submit the basic one page application / information form; We ask the ABR only to forward us a signed mandate ( generated
automatically when the deal / application is logged ), and any documentation they may already have in respect of the client / deal.

Thereafter, we are happy to liaise with the client ( i.e. the person requiring finance ), provide advice,
collect all required documentation for submission to appropriate financiers / capital providers, and manage the sign-up / closing of the transaction. We are able to advise clients at the outset ( i.e. upon initial receipt of the application and supporting documentation ) as to the prospects of success of their application.

In cases for example where we are aware of circumstances ( from experience ) that mean a client’s application is highly unlikely to be successful, we are able to save the client the time and trouble of submission and follow up. We are often also able to suggest alternative structures of products which may in the circumstances accomplish the same result for the client.

All communications with the client are typically copied to the ABR, and the ABR is sent regular weekly updates on the progress of all transactions / submissions; Should the ABR prefer us not to deal with the client ( i.e. for all communication to flow solely through the ABR ), this can be accommodated, but the ABR needs to make specific note of this when submitting the application to Commercial Finance Lenders. We do caution however that this tends to slow down the process, and we find this defeats a great deal of the benefit to the ABR from our offering ( i.e. the ABR still needs to be actively involved in the packaging / submission of applications ).

What information / documentation is necessary from my client, in order for an application to be submitted by Commercial Finance Lenders? Although each financial product or capital structure to be arranged may have a unique or specialised ‘recipe’ of required documentation, most applications or capital structures will require the submission of at least the following basic five items of standard documentation, eg: full personal & company A & L , Project Cashflow, Business Plan, completed Questionaire & Application.

What benefits are there for a professional finance broker in joining our ABR Programme?

Independent or even affiliated finance brokers who join Commercial Finance Lenders as ABR’s, receive the following advantages: Credit markets and financiers have become very conservative, given the global credit crisis and volatility in the world’s financial markets.

Approval rates for applications for most forms of finance have halved ( or worse ), and now more than ever an application for finance needs to be diligently and skilfully prepared / packaged in order to stand a chance of being approved; Our team is specifically skilled and experienced in this aspect, and is able to seamlessly add this value to any application referred through Commercial Finance Lenders.

Commercial Finance Lenders & associated Partners has contractual relationships to provide business to more than 30 various financial institutions and capital providers, many of whom may be more aggressive or have a specific appetite for a particular type of finance.

We are uniquely able to analyse any application, and submit it to the most appropriate financier or capital provider ( and often are able to submit to multiple financiers ). This ensures the best possible chance of a successful application for your client.Due to the volume of applications submitted by Commercial Finance Lenders to financiers, we are usually able to obtain better service and turnarounds than our ABRs or their clients may be able to alone. In this way, your clients benefit from our aggregated input to banks / institutions and clients’ applications are taken seriously.

In addition, in this market we find that Banks and Financiers are not prepared to accept referred applications, unless a broker has a very significant deal flow, and they have pulled / cancelled referral contracts with all but the largest volume referrers.

What fees or commission can I earn as an Authorised Business Referrer?
The ABR business model is very simple – 50% of the commission or fee actually received by Commercial Finance Lenders in respect of a successful transaction or application, is shared with the ABR who referred the transaction or application.

Higher percentages are shared with the ABR in circumstances where monthly finance volumes exceed certain thresholds;

It should be noted however that further terms and conditions may apply and are governed by specific contractual agreement to be entered into between Commercial Finance Lenders and the ABR.

Does my client pay more if the deal / application is referred through the ABR Program?
No – Commercial Finance Lenders shares its income with the ABR, and the client does not pay any more by virtue of being introduced by an ABR;

What does it cost my client to have Commercial Finance Lenders assist with a finance application?
We work purely on risk – i.e. there is no fee or commission earned by Commercial Finance Lenders (or therefore by an ABR ) unless an application is successful in receiving an offer.

In respect of a number of the more complex finance applications ( such as Commercial Property Finance ), we may charge a service / funding fee in the order of 1.5% to 2.5% ( excluding GST ) of the principal value originated. This would however be communicated prior to submission to financiers ( after initial evaluation by us of the application ), and it would naturally be up to the client to accept or reject our proposed fee – in any event, this fee would be the same as would be charged on personal application by the client.

It should be noted that any fee raised by Commercial Finance Lenders on this basis is completely separate from fees levied by the financiers, who may well charge their own raising or documentation fee.

DON’T DELAY -TOLLFREE CALL TODAY!

In Australia 1300 776 703

http://www.commercialfinance.org.au

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