The importance of the broker channel in helping small businesses access much-needed finance was brought to the fore at The Adviser’s SME Broker Bootcamp 2020.
The Adviser’s SME Broker Bootcamp 2020 took place on 1-2 December
On 1-2 December, hundreds of brokers tuned in to The Adviser’s sixth annual SME Broker Bootcamp.
The free event, run virtually for the first time, outlined the key issues SMEs have been facing during COVID-19, how this has impacted SME finance, and how brokers can be filling the void by providing much-needed help when it comes to SME finance now and into the future.
Held digitally over the course of two mornings (1-2 December), the SME Broker Bootcamp sought to equip brokers with the tools and knowledge to tap into lending for small and medium-sized businesses.
What happened on day 1
Hosted and emceed by finance executive, business coach and educator Stuart Donaldson, the first day of the bootcamp delved into the trail of disruption and devastation wreaked by COVID-19, and how it has spurred a lending solution boom for smart brokers.
After outlining how COVID-affected businesses have been impacted and what the recovery may look like, Mr Donaldson revealed the financial models and utilised real-life examples to showcase the success stories in which brokers have been in the driving seat to help businesses when they needed it most.
In a case study session, Mr Donaldson and GetCapital’s head of strategic partnerships, Cristian Fedrigo, unpacked how brokers have helped SMEs access finance, demonstrating the opportunity of commercial finance and running through an exercise scenario of how brokers have supported small-business owners grow and how those SMEs utilised the funds provided.
Later in the morning, brokers were treated to the first part of the Alternative Product Roadmap, an interactive session designed to equip brokers with key information on a range of products and services that cover both the home loan journey and complementary services.
Mr Donaldson spoke to Mal Withers, Pepper Money’s head of commercial; Peter Benson, director of Credit Connect Group; and Mark Andersen, national broker manager at Finstro, to help brokers understand these lenders’ sweet spots, what qualifying questions and financials they may need to provide to each lender, and what solutions and support is available to brokers writing loans through these lenders.
Day 1 of the SME Broker Bootcamp concluded with a session with the chair of the CAFBA Education Council, Terry Moody, who is also a leading asset finance broker and director/founder of major asset finance brokerage, Moody Kiddell & Partners.
Mr Moody outlined how CAFBA is advocating and supporting commercial and asset finance brokers, and why it is formalising and raising education standards in the commercial finance space.
What happened on day 2
On 2 December, brokers heard from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell, as she revealed what the main issues facing small-business owners had been over the year.
As well as outlining the range of support available, Ms Carnell urged brokers to help SMEs access finance asap, if they were not doing so already.
She said: “Can I tell [brokers] that they should get involved with small business?
“There’s 2.2 million small businesses in Australia, and even the ones that may not have needed access to capital or the support of a broker prior to corona [may need to] as JobKeeper finishes, with the end of the cash flow boost etc.
“There’s going to be an awful lot of businesses who are going to have to access capital that possibly didn’t need to before, in order to keep their businesses afloat or to invest in their businesses.”
In the second morning of the SME Broker Bootcamp, brokers also heard from business coach and educator Stuart Donaldson from Banyan Co as he walked through how brokers can appreciate an SME’s value wheel, what value boosters might be, the importance of P&L and EBITDA, and how to create a business scorecard.
Later in the day, Beau Bertoli, the co-founder and chief revenue officer of Prospa unpacked the emerging and significant trends affecting SMEs that brokers should be across as 2021 approaches, particularly as many of these trends will drive more demand for SME credit.
In the second part of the Alternative Product Roadmap, viewers heard from Simon Arraj, director of Vado Private; Torri Martin, national partnerships leader and broker leader NSW from Latitude Financial Services; and Mick Conyngham, head of distribution at Mortgage Ezy, as they outlined what lending products are available outside of owner-occupied mortgages that can provide solutions to a range of needs. Products discussed included development finance, personal loans, asset finance and SMSF loans.
During the course of the day, brokers had the opportunity to speak directly with lenders at the virtual exhibition centre and learn more about the solutions available through Momentum Media’s custom-built event platform.