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Figures from the Australia Institute revealed that around 15.7 per cent of the nation’s workforce is self-employed, equating to more than one in eight workers.
Despite this substantial segment, many brokers overlook self-employed clients due to difficulties in aligning irregular income and integrating personal and business affairs with lender policies, according to LMG.
The updated program focuses on new MyCRM features that streamline and digitise clients’ commercial, asset finance, and residential deals and records within a single platform.
Currently being piloted with 100 commercial brokers, the suite includes tools to capture a comprehensive view of each client, visualise complex business structures, prepare commercial credit papers, and originate diversified applications.
In addition to these technological enhancements, the program offers new best-practice training on:
• Analysing business financials and identifying opportunities to add value to clients’ operations
• Self-managed super fund applications and alternative documentation
• Construction and development finance
• An updated overview of the SME market with Banjo Loans
• Supporting clients with tax debt management, with insights from Tax Assure
• Insurance premium funding
• Cash flow lending
LMG’s national director of broker education Louise Rainger said: “We’re committed to providing brokers with the knowledge, resources and tools to diversify their revenue streams and build smarter businesses.
“In revising our training and education on the self-employed market, we’ve tapped into the expertise across LMG’s Commercial specialists as well as industry specialists.”
Andrew Rose, who launched Blue Rose Financial in late 2022, identified the need to address self-employed clients both existing and referred by financial advisers and accountants.
“If you’re simply focusing on residential, you’re limiting yourself in revenue streams and leads from referral partners,” he said.
Rose said that while commercial deals can take longer to materialise, they can be highly beneficial for brokerages.
Over the past 18 months, he has helped clients purchase warehouse buildings, secure working capital, and fund acquisitions of businesses with freehold buildings.
“A lot of the time, when I’m organising a commercial facility for a self-employed client, I’ll bring over their home loan as well. It might be a $10 million commercial property purchase and as part of that, I’ll refinance $3 million in residential assets which are commonly used as equity,” he said.
Rose also praised LMG Commercial for its support in securing accreditations with commercial lenders and training.
“Over the last 12 months my business activity would be split 70/30 in favour of residential, but the last quarter it would be almost even – inquiry for commercial is growing every month,” he said.
Industry figures from the Australian Industry Group revealed that some sectors have a higher proportion of self-employed clients.
For instance, the transport and warehousing and real estate industries – both of which saw significant growth during the pandemic – exhibit a strong representation of self-employed clients.
Additionally, more than 40 per cent of the agriculture sector, which has seen surging land values in recent years, is self-employed.
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