What next after Cert IV and accreditation? - Joanne Brooks

If you’re new to the industry, you’re likely to be thinking about life post-Cert IV (or equivalent).
So what do you now? Are there are other programs available to you? Do you need to do any further training?

For the more experienced broker, the challenge may be seeing the value in further education, both as a broker and a small business operator. Is it worth the time and money to pursue additional training? This article explores some of these issues, and outlines how further education and training can be beneficial regardless of your experience level.

New brokers

It is interesting how much time and effort new brokers invest in their initial training however are lost as to what training is available to help them get their business started, how to build their client base and manage the relationship, how to manage their business and most importantly how to grow their business.
 
It is understood many new brokers are from the banking arena and have been exposed to many training programs during their banking career. These people quite rightly feel very confident about starting their new broker business, however as most commercial lenders will confirm, being an employee is very different to owning and running your own business.

There is also a good percentage of the new broker market that doesn’t originate from the finance industry. These people come from many walks of life; retail, manufacturing, real estate, financial planning and accounting fields to name just a few. Obviously some of these brokers will have an advantage of already being self employed with a client base they can tap into to grow their broker business.

It may surprise brokers to know there are training organisations who specialise in Finance Broker  training providing programs for the new entry brokers to experienced broker houses who want to grow their business but unsure how to go about it.

For the new entrant broker programs vary from initial three day programs with monthly coaching sessions over a 12 months to one, two or three day programs.

These programs will cover topics such as the Realities of Mortgage Broking, Business Plans, and The Application Process, Steps to Selling, The Client Ladder, and Marketing Activities etc. All of which provide the broker with the skills to win the business and manage the relationship.  

The writer of this article is often questioned “why didn’t I know about this program before”. The challenge for brokers and training organisations alike is how to get this information out to the brokers effectively. The sheer number of emails a broker will receive each day means that most emails either go unread or deleted. Many training organisations are now approaching the aggregators and franchisors to discuss training options for their members.
 

Other lending products

There should always be a period of time for new brokers to “Get their head around the home loan market” and develop their client base. How long that takes will differ from broker to broker depending on their past finance experience.

For the Mortgage Broker to remain in their comfort zone by writing only home loans puts them at risk to loosing the deal or even the client relationship.

The client whose broker cannot process the commercial or plant & equipment loan application will quickly find a broker who can who will most certainly take over their home loan as well.

Many mortgage brokers would be unaware that brokers can generate fast and effective income from these other types of loans. An experienced Finance Broker can earn up to $250 per hour by writing a Commercial Hire Purchase to finance a motor vehicle for their client and potentially be paid within 14 days of settlement. This should surely be incentive to diversify the skills!

So what is available to those brokers who want to diversify into the Commercial or the Plant & Equipment market?

Whilst there are several lenders who will automatically accredit their home loan brokers for small business lending (under $1 mil) obtaining accreditation varies from lender to lender for commercial lending.

Currently two of the major commercial players require the broker to have been writing commercial loans for the past 2 years; however will accept applications with a spotter fee payable to the introducing broker.   

Most commercial lenders grant accreditation to the aggregator or franchisor that are required to monitor and provide support to their brokers to ensure the applications meet their min quality requirements.

Discussions with some of the major commercial lenders reveal there is a change of heart by lenders in that they recognise they need to step up to the plate to assist with the training for these brokers.

These lenders are now developing new processes to assist the brokers enter the commercial market and training programs.   

We will explore other training options Part 2 of this article in the next newsletter. 

About Joanne Brooks

Joanne has over 25 years of experience in the financial services industry and holds a Diploma in Financial Services and a Certificate IV in Training and Assessment.

Joanne has written a number of training programs, including Diploma of Financial Services (Finance Mortgage Broking Management), Cert IV in Financial Services (Finance Mortgage Broking) and many technical skills programs in the lending field.  Joanne facilitates and personally conducts training in response to the needs of the client .

To learn more about these training programs, visit: www.rippleresults.com.au  or download:

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