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Commercial Edge Week One

Commercial Edge Week One...7 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

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Page 1: Commercial Edge Week One...7 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

Commercial EdgeWeek One

Page 2: Commercial Edge Week One...7 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

2

2020

Agenda

2

01 What’s the opportunity?

02 Breaking down the steps to winning in commercial

Page 3: Commercial Edge Week One...7 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

2020

3

Who are we?

Richele Janjatovic Dawood OdehCommercial BDM

VIC & TASCommercial BDMNSW, ACT & QLD

We are an additional resource to our 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.

Page 4: Commercial Edge Week One...7 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

4

2020

Our Commercial Team Structure

Collectively > 150 years of commercial lending experienceMinimum of 10 Years

Page 5: Commercial Edge Week One...7 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

What’s the opportunity?

Page 6: Commercial Edge Week One...7 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

6

2020

Business Customer Lifecycle

HomeLoans

~ $392b

AFGBusiness~ $389b

Commercial Property Investment(Stand-alone)Buy a

business

Business Premises(Owner occupied)

Vehicles/Equipment

More Equipment / Vehicles

Working capital / Invoice FinanceSMSF – Commercial

or Resi property

Investment Property

Family Home

Holiday Home

Same Client –Extra Income

Page 7: Commercial Edge Week One...7 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

7

2020

Increase your return – Paid referral 30%

Residential Home Loan $450,0000.60% Upfront $2,700

0.165% trail over 3 years $2,228

Commercial Property Loan $500,0000.50% Upfront $2,500

0.165% Trail over 3 years $2,475

Asset Finance $150,000 – 3 cars3% Brokerage $4,500

Total income $14,403

Referral fee = $810Net income (HL only) = $1,890Net 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%

Page 8: Commercial Edge Week One...7 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

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

Lender Share of Big 4

Page 9: Commercial Edge Week One...7 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

Breaking down the steps to winning in commercial

Page 10: Commercial Edge Week One...7 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

10

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

Page 11: Commercial Edge Week One...7 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

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 solutionAFG 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.

Page 12: Commercial Edge Week One...7 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

12

2020

Six steps in commercial

Step 1Spot Opportunity

Step 2Book a meeting

Step 3Discover their goals and needs

Step 4Workshop the deal

Step 5Present options

Step 6Lodge & settle a deal

Page 13: Commercial Edge Week One...7 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

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

Page 14: Commercial Edge Week One...7 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

14

2020

Purpose of funds is key

Purpose of funds

Determines the product

Determines the security required

Determines the loan term

Determines the rate

Page 15: Commercial Edge Week One...7 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

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2020

Purpose of funds is keyWorking 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.

Page 16: Commercial Edge Week One...7 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

Refer to handout – Financials

Page 17: Commercial Edge Week One...7 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

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?”

Page 18: Commercial Edge Week One...7 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

Step 3 Discover their goalsand 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

Page 19: Commercial Edge Week One...7 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

2020

19

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

Page 20: Commercial Edge Week One...7 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

Step 5 Present options

Page 21: Commercial Edge Week One...7 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

2020

21

AFGB PlatformAsset Finance

Commercial

Page 22: Commercial Edge Week One...7 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

Contact usNext week

01 Commercial property lending

02 Servicing calculations

Richele Janjatovic Dawood OdehCommercial BDM

VIC & TASCommercial BDM

NSW, ACT & [email protected] [email protected]

Page 23: Commercial Edge Week One...7 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

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