While the majority of finance brokers focus on residential mortgages, an increasing number are delving into the area of commercial finance. 

To educate and resource brokers, the Finance Brokers Association of Australia (FBAA) will run its commercial masterclass in-person on September 6, for the first time since 2019. 

FBAA managing director Peter White AM said the aim was to provide brokers with an opportunity to expand and develop their business. 

“Brokers should always be looking at new opportunities and this is a profitable and growing area of lending.”

However he cautioned that it requires specialist skills and knowledge, as it is a complex area.

“Brokers considering commercial and SME lending need a paradigm shift, as the NCCP act doesn’t legally apply. Commercial lending doesn’t fit cleanly into a simple box as does home loan lending,” he explained. 

Aimed at providing brokers with the skills to engage in commercial finance, the event will take place in Sydney and have an online option. 

The masterclass helps brokers understand every aspect of commercial lending including how to read a valuation, understanding and assessing different markets, writing local applications and the importance of executive summaries.

Speakers include Stuart Donaldson from Accendo Financial, Dan Hill from Opteon, Glenn Mitchell from Vow Financial, and Glenn Screech and Matt Kalinski from Lloyds Auctioneers. 

FBAA National Partnerships Manager Leah Renwick will also host a panel of commercial brokers. 

Mr White said the day would provide high quality training and ensure brokers entering this market do so with best practice principles.

“Bottom line, is that without adequate training and skills, brokers who have only done residential won’t succeed in commercial finance,” he explained.

FBAA members will receive four CPD hours. Information can be found on the FBAA website.