Meeting Client Needs and Securing Income
Once launched and operational, your business will be offering clients a very comprehensive and broad range of high demand Commercial Financial services. The breadth and spread of these services and revenue streams ensures that your business is not dependent on or vulnerable to one specific product area. Importantly this empowers you to offer your commercial clients valuable, professional advice across the whole spectrum of Commercial Finance Products.
As you become a trusted advisor to your clients and Business Associates they will regularly turn to you for support and a Professional opinion on alternative sources of funding whatever their business need.
Core Financial Products
The foundation of your business will be to deliver professional advice, services and funding solutions to your clients in the following core financial product areas :
- Commercial Property Loans and Mortgages
- Finance to Purchase a Trading Business
- Investment Mortgages and Buy To Let Facilities
- Property Development & Refurbishment Finance
- Short Term Loans and Bridging Finance
- Asset Finance – Business Equipment , Vehicles and Machinery
- Factoring , Invoice Finance & Trade Finance
- Retailer and Merchant Financial Services
- General Business Loans & Personal Secured Loans
- Business Planning, Cash Flow and Project Forecasting
- Government Schemes and Regional Grant Support for Business
- Debt Management Support and Business Re-Structure
Develop Your Own Business Consulting Skills in Key Product Areas
In establishing your own Business with the support of the Brokerplan programme you will learn to develop your own skills and expertise as a Professional Consultant and Broker. The range of Core products and services you will become skilled in is very broad and in addition you will develop ancilliary revenue opportunities through Strategic Partnerships , the arrangement of these being integral to all the Brokerplan Business Packages.
An outline of the most lucratice Core Products and Services is given below :
Commercial Property Funding – Investor Purchase and Owner Occupier Properties
Commercial Mortgages for offices, retails units, warehousing, manufacturing units and workshops etc. Learn about the key underwriting criteria, how to quickly assess the merits of the application and how to submit a professional funding proposal to one of many lenders in this sector.
Brokerplan Revenue Fact - One average sized £350,000 Commercial Mortgage transaction successfully completed will generate total fee income of circa £6,000
Retail , Leisure , Manufacturing and Commercial Businesses
The acquisition of a ‘lifestyle’ trading business is a dream for many clients and with funding available to 75 % of the business valuation you will be in an ideal position to assist the client. For sitting tenants in a leasehold business such as a pub, restaurant or fast food outlet with a demonstrable trading record it is often possible to secure 100% of the borrowing requirement in some circumstances.
Property Development and Refurbishment Finance
Providing Property Development and Refurbishment Finance to the SME Community is an extremely lucrative element of the Brokerplan programme. You will learn how to qualify, develop and manage such opportunities with over 15 UK Lenders very much active in this in this part of the market. In addition to the provision of Senior Debt for such projects you will also be providing the top up finance for the project or so called ‘Mezzanine Funding’ which will add additional fees.
Brokerplan Revenue Fact - An average sized £750K Property Development project completed will generate total fee income of circa £15,000
Buy To Let / Investor Mortgage Finance
The Buy To Let Mortgage market is now starting to gain pace again as many Professional Investors and Landlords look to take full advantage of many properties offered for sale at ‘below market value’. With significantly more Buy To Let Mortgage products being available in the 75% - 80% Loan To Value (LTV) range this presents significant opportunities to tap in to this market opportunity. In addition a significant number of landlords are seeking to re-finance an existing portfolio of properties to raise cash for new acquisitions.
Brokerplan Revenue Fact - An average sized £175,000 Buy To Let Mortgage transaction completed will generate fee income to you of circa £1,000. As an experienced and established Buy To Let advisor many of your clients will be Professional Landlords looking for mortgage offers on a regular monthly basis as they build up their portfolio or potentially look to re-finance an existing portfolio of properties.
Asset, Equipment and Vehicle Finance
The provision of vital Business Assets using Leasing , Contract Hire and HP Terms is a key area of the UK Financial Services market. The Brokerplan programme will teach you the key elements of successful underwriting in this sector of the market and a clear understanding which Partner Funder to route and deliver your Business Opportunities. As an experienced Asset Finance Broker you will provide much sought after finance for a broad range of equipment, machinery and vehicles including cars , vans, buses, trucks and ‘Yellow Plant’ including JCB’s, excavators etc.
Brokerplan Revenue Fact - An average sized £100,000 Asset Finance transaction completed will generate total fee income of circa £5,000 Asset Finance deals are generally faster than property related contracts and will typically take around 2 – 4 working weeks to complete all the necessary underwriting to funds advance and commission payments.
Cash Flow Finance − Factoring and Invoice Discounting
Factoring and other forms of Invoice Finance provide a vital service to any new start or SME Business. The client will receive up to 85% of the value of any Invoices within 24 hours of issuing the Invoice and the balance is paid as and when the invoice is fully settled ( less charges applied).
Of the 4.5 million businesses registered in the UK only a very small percentage are currently using this valuable and cost effective service. You will get immediate access to a panel of 15 Factoring and Invoice Finance Partners all keen to support viable businesses whether new start or well established.
Your reward will be a significant share of the service fee ( Typically 15-20% ) for the entire life of the agreement between the Factor Partner and your client.
Brokerplan Revenue Fact - A typical £150,000 Factoring facility agreement will deliver average monthly fees to you of £180 per month, every month for the life of the agreement. A typical agreement lasting circa 4 years will net you an average £2160 per annum or £8,640 in total – just from the one case !
Short Term or ‘Bridging’ Finance
Bridging Finance provides your clients with quick access to secured funding for any legitimate purpose. This could be in relation to a home move to secure that ‘must have‘ property, to secure a Residential or Commercial investment property at below market value or simply to raise cash for other Business Purposes.
Whatever the reason you will be providing these clients with sources of funding to meet their needs quickly and efficiently and of course ,all fully compliant with Financial Services Regulations. The provision of short term Bridging Finance is one of the major growth areas within the UK Financial Services market.
Brokerplan Revenue Fact - One average sized £200,000 Bridging Finance transaction completed will generate fee income to you of circa £3,500 By their nature Bridging Finance transactions are quick to implement and on average you will be completing the deal and earning your fee income and commission within 2 to 3 weeks of commencing the underwriting of the case
Personal Residential Mortgages and Secured Loans
In addition to the broad range of Commercial Products you will also have the opportunity to provide your clients with personal Residential Mortgages and Secured Loans. Giving direct advice to clients on ‘regulated’ Residential Mortgages requires the advisor to hold the CeMap qualification and be either directly regulated by the FSA or to work with a regulated and qualified partner such as the Brokerplan Mortgage team.
Secured Loans can be provided to clients seeking to raise funds using their home property (or other owned property ) as security for the loan on a 2nd charge basis.
Brokerplan Revenue Fact - An average sized £35,000 Secured Loan transaction completed will generate fee income to you of circa £1,200 . Secured loans are generally completed within 3 - 4 weeks from initial enquiry working with a panel of 8 -10 lenders in this segment of the market.
Additional Revenue Opportunities
As your business becomes established you will become confident in securing local business partnerships with other business professionals offering related products such as Business Insurance products , Capital Allowance retrieval, SASS Pension planning and general Financial Consultancy services.
These ancilliary products will all present additional and very significant fee income opportunities to you. The Brokerplan training will provide detailed advice and guidance on how to develop and structure these relationships ongoing.