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In launching its Market Megatrends 2024 report in Sydney on 6 December, major bank NAB has found that almost six in 10 small- to medium-sized enterprises (SMEs) have plans in place to invest and expand in the next 12 months, which has created valuable opportunities for brokers to support with financing options.
Growth plans among SMEs are despite much uncertainty in the near-term economic outlook.
According to NAB, around four in 10 intend to grow organically via new product investment or services; however, many are looking for innovative ways to navigate a complex environment and take advantage of emerging trends.
Brokers that possess the appropriate skills to advise these SME customers are able to play a key role in helping them with their financing needs, the report said.
The report said that brokers with a deep understanding of their customers can help identify opportunities and secure funding to facilitate growth. For example, a broker might help a customer with a manufacturing operation to improve efficiency through modelling the cost and benefit of replacing old factory equipment.
NAB’s executive commercial broker and equipment finance sales, Chris Thomas, said the core opportunity for brokers working with SMEs lies within a deep understanding of their customers, which enables them to showcase their knowledge and expertise.
“Key areas where brokers can provide support include succession planning and helping businesses drive growth through strategic investments, creating opportunities for collaboration with banks on funding and fostering long-term relationships,” Thomas said.
Karlie Scharfenberg, director and senior finance broker for The Loans Suite, delved into how she assisted a young entrepreneur in expanding his business in the construction sector.
“I sat down with him, reviewed his initial plan, and helped him expand on it,” she said.
“At 26, he’s got a lot of potential but needed guidance on how to structure his goals and build the business sustainably.
“For me, it’s about educating clients and helping them make the best financial decisions.”
NAB’s report further said that brokers looking to branch into business lending must invest in their strategy to guarantee their firm is capable of offering customers the most professional service possible.
“This could range from personally upskilling through to hiring in the services of an experienced commercial broker or former business banker,” it said.
“NAB is empowering more mortgage brokers to upskill and expand their services to write more commercial loans.”
[RELATED: 7 challenges SMEs could face in 2025]
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