Commercial lending is changing. For years, many brokers approached commercial deals the same way. Find a lender, secure approval and get the transaction settled.
But as businesses face rising costs, tighter cash flow, increased ATO enforcement and changing lender appetites, finance is often only part of the solution.
The most successful brokers are shifting from transaction-led conversations to strategy-led ones, helping clients navigate today's challenges while building a path to tomorrow's opportunities.
We explored this in our latest webinar, where Brent Starrenburg, Head of Commercial and Asset Finance at Connective, was joined by Vin Selvakumaran, Business and Specialist Business Development Manager at Bank of Queensland, and Phillip Meehan, Director, Origination and Head of Broker Aggregators at Arch Finance. Together, they discussed the changing commercial lending landscape, the growing role of private credit and how brokers can use a broader range of funding solutions to deliver better client outcomes.
A client may not qualify for traditional bank funding for a range of reasons. It could be unresolved ATO debt, incomplete financial reporting, cash flow pressure or simply a need to settle a transaction faster than a bank can accommodate.
That doesn't necessarily mean it's a bad deal or a struggling business. More often, it means they need a different path forward, and that's where commercial brokers can create real value. Rather than focusing solely on the transaction, they can help clients understand their options, solve immediate challenges and work towards longer-term goals.
Private lending is a good example. While private lenders and banks are often viewed as competing solutions, they frequently play complementary roles. A private lender may help a client address a short-term challenge, improve their financial position and create a pathway back to mainstream funding. As Phillip noted during the discussion, it's about "getting that strategy right early up front". In many cases, private funding isn't the destination. It's part of the journey.
The strongest commercial lending outcomes don't start with a lender. They start with a strategy.
Why does the client need funding now? What's preventing them from accessing traditional finance? What needs to happen over the next 12 to 24 months? What would a successful outcome look like several years from now?
These conversations often uncover opportunities and risks that would otherwise be missed.
When a client transitions from private funding back to a bank, lenders want evidence that the issues which originally led them down that path have been addressed. As Vin Selvakumaran explains, “the most important thing is a good repayment history. For the bank, that’s a minimum of six months, so we can identify a positive trend and feel confident in the customer's ability to meet their obligations.” Up-to-date financial reporting, improved trading performance and acceptable tax conduct can also help show that a business is ready for mainstream lending again.
Commercial lenders want more than just numbers. They want to understand the business, the challenges being faced and the strategy behind the funding request. A strong submission tells the story behind the deal, helping lenders build a clearer picture of the client rather than leaving them to fill in the gaps.
Transparency matters too. Whether it's tax debt, credit challenges or previous setbacks, lenders will typically uncover these issues during the assessment process. Providing context upfront can help build credibility and strengthen the overall application.
As the range of funding solutions available to brokers continues to grow, commercial broking is becoming less about finding a loan and more about helping clients navigate increasingly complex financial decisions.
Today's brokers have access to a far broader range of solutions than they did just a few years ago, including private credit, working capital facilities, debtor finance, trade finance and traditional bank funding. Understanding how those solutions fit together can help brokers support more clients, navigate more complex scenarios and build stronger long-term relationships.
There are also opportunities emerging in sectors where lender appetite remains strong, including healthcare, aged care, childcare, retirement living and hospitality. Brokers who understand where lenders are actively looking to grow can be better positioned to identify opportunities for both their clients and their own businesses.
As Phillip put it, "it's never been a better time to be a commercial broker, because of the amount of products at your disposal". For brokers willing to build that capability, the opportunity is significant.
Whether it's helping a client manage ATO debt, navigating private credit options or developing a strategy to move back towards mainstream funding, brokers are increasingly being asked to do more than simply find a lender.
Through ongoing education, specialist support and access to a broad range of lenders, we help brokers navigate more complex scenarios, structure stronger solutions and build confidence in commercial lending. It's all designed to help brokers identify new opportunities and deliver better outcomes for their clients.
If you'd like that kind of support behind you as you grow your Commercial business, you can learn more about our Commercial offering here.
