Residential mortgage brokers are keen to diversify into SME lending as 20 to 30 percent of their present clients are business owners. However, according to business coach and educator Stuart Donaldson, they lack the confidence to branch out because of a lack of knowledge of SME space.
As operating in the SME space is an altogether different dynamic to residential broking, mortgage brokers should self-educate and learn how to analyze the financial statements of business enterprises. It will enable them to identify the strengths and weaknesses of the firms and position themselves as trusted advisers by asking the right questions and getting the required information.
