Commercial Edge Week One 2020 Agenda 01 Whats the opportunity? - - PowerPoint PPT Presentation

Commercial Edge Week One

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2020

Agenda

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01

What’s the opportunity?

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Breaking down the steps to winning in commercial

2020

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Who are we?

Richele Janjatovic

Dawood Odeh

Commercial BDM VIC & TAS Commercial BDM NSW, ACT & QLD We are an additional resource to

• ur members business.

Irrespective of where you are on your commercial journey, we’re here to help. Our goal is to find the best solution for you and your customer.

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2020

Our Commercial Team Structure

Collectively > 150 years of commercial lending experience Minimum of 10 Years

What’s the opportunity?

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2020

Business Customer Lifecycle

Home Loans ~ $392b AFG Business ~ $389b

Commercial Property Investment (Stand-alone) Buy a business Business Premises (Owner occupied) Vehicles/Equipment More Equipment / Vehicles Working capital / Invoice Finance SMSF – Commercial

• r Resi property

Investment Property Family Home Holiday Home Same Client – Extra Income

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2020

Increase your return – Paid referral 30%

Residential Home Loan $450,000

0.60% Upfront $2,700 0.165% trail over 3 years $2,228

Commercial Property Loan $500,000

0.50% Upfront $2,500 0.165% Trail over 3 years $2,475

Asset Finance $150,000 – 3 cars

3% Brokerage $4,500

Total income $14,403 Referral fee = $810 Net income (HL only) = $1,890 Net income (HL + Commercial + AF) = $13,593 What did it cost you? Home Loan only $810 / $4,928 = 16% Home Loan + Commercial + Asset Finance $810 / $14,403 = 5%

Increase your return by over 300%

Market share for the majors is reducing in the commercial space.

Lender Share of Big 4

Breaking down the steps to winning in commercial

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2020

What support do you need?

Knowledge Do you need a better understanding of commercial – if so, what specifically? Process Do you need more support on how to submit and structure the deal? Skill Do you need help having conversations with self employed clients? Mindset Do you want to?

(K + P + S) x M = Opportunity

AFGB Program

• Commercial BDM’s + PM Support
• Commercial Scenario and Support Desk
• Learning and Development Program
• Commercial Edge Training Program
• Specialist Lender Product Program

The largest panel of business lenders of any Australian aggregator. Specialist support for deal workshopping, applications and lodgement. Simplified accreditations and paperwork. Quickly find and secure a range of products for clients in one simple application. Industry-first, back-channel messaging system. Integrated live chat with business lending specialists. AFG Commercial Powered by Thinktank product range. Full learning and training pathways and courses.

Diversify your income and offer a complete financial solution

AFG Business is the only platform of its kind in Australia. You’ll be equipped with the tools and strategy to help you diversify into business lending.

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Six steps in commercial

Step 1

Spot Opportunity

Step 2

Book a meeting

Step 3

Discover their goals and needs

Step 4

Workshop the deal

Step 5

Present

• ptions

Step 6

Lodge & settle a deal

Step 1

Spot the opportunity

• 1. Market online – LinkedIn, FB and

Instagram

• 2. Existing Financials
• 3. Align yourself to an accountant
• 4. Align yourself to a business broker
• 5. Align yourself to a commercial agent

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2020

Purpose of funds is key

Purpose

• f funds

Determines the product Determines the security required Determines the loan term Determines the rate

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2020

Purpose of funds is key

Working capital –

anything to do with cash flow

Term Loans –

anything to fund a larger asset i.e. a property or a business

Asset Finance –

anything to fund an asset that has a serial number

Guarantees –

guaranteeing performance of a job or securing a rental deposit

Overdraft Business loan Chattel Mortgages Performance guarantee Line of credit Lease doc loan Novated lease Rental guarantee Debtor Finance Commercial Bills Hire purchase Commercial credit card Short term loans Trade finance

The first thing to always ask is – what do you need the money for? This will direct the conversation to what products you have available in the market. They will always fall into four categories as per above – then you’ll have sub-categories available. For example, you wouldn’t provide business loan to a customer, who needs a car for their business.

Refer to handout – Financials

Step 2

Book the meeting

• Use the double bind technique

“Hi Joe, The purpose of my call is because I was thinking about your business and would love to float an idea past you. Would next Wednesday after 1pm or Thursday after 10am suit you?”

Step 3

Discover their goals and needs

• Utilise your aggregator fact find or

create your own

• Your goal is to walk away

understanding: 1. Purpose of funds 2. What they do 3. What is important to them

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Step 4

Workshop

Purpose of funds: Seeking a commercial property for o/o purposes. Clients will cease renting and the new site will provide an additional 600 sqm storage and office space. Address: 123 ABC St, Port Melbourne Purchase price: $1,200,000 Loan amount sought: $960,000 LVR Sought: 80% Stamp duty and GST: Client will self fund Additional landed security: Nil Sponsor: Sponsor has been in commercial and residential plumbing for 11 years and operating his business for 6 years Website: Insert website of the business Doc type: Full financials available Other: Paid default on personal credit file $256.98 Important to the client: Lowest deposit and need for low doc as financials are not available

Step 5

Present options

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AFGB Platform

Asset Finance Commercial

Contact us Next week 01

Commercial property lending

02

Servicing calculations

Richele Janjatovic

Dawood Odeh

Commercial BDM

VIC & TAS

Commercial BDM

NSW, ACT & QLD

Richele.Janjatovic@afgonline.com.au Dawood.Odeh@afgonline.com.au

Thank you for attending

Please note AFG does not provide tax, legal or accounting advice. Any information contained in this document is of a general nature only and does not take into account the objectives, financial situation or need of any particular person and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Therefore, before making any decision, your clients should consider the appropriateness of the information with regard to those matters and consult their own tax, legal and accounting advisors before engaging in or considering the appropriateness of any transaction.Australian Finance Group (Commercial) Pty Ltd ABN 52 081 643 512 Australian Credit Licence 392750