Broker Pulse Commercial Lending wrap-up: November 2024

The November 2024 Broker Pulse Commercial Lending report highlights key activity, lender usage, and performance metrics for Australia's third-party commercial lending sector. This summary draws insights from data collected between December 1st and 20th 2024, with responses from 240 total brokers and 118 active commercial brokers.

Commercial Mortgages

The median number of commercial mortgage applications submitted remained consistent across most states, with a median of 2 applications per broker. South Australia and the Northern Territory showed slightly higher activity, averaging 2.5 applications, while Western Australia lagged with a median of 1 application​.

We can see an even distribution when assessing the value of commercial mortgage applications submitted. Only 6% of brokers submitted applications valued under $250,000, while at the higher end, 12% submitted loans exceeding $5 million. The most common loan sizes were within the $500,001–$1 million and $1 million–$2.5 million brackets.

In terms of lender choice, NAB continued its dominance with 22% of brokers submitting loans to them, followed by Commonwealth Bank (16%) and La Trobe Financial (13%). NAB's leadership in broker usage reflects its competitive offerings and widespread broker relationships​.

Turnaround times for commercial mortgages varied significantly between lender types. Among major banks, ANZ reported a median of 6.5 days, while NAB averaged 7.6 days and Commonwealth Bank 7.8 days. Resimac led non-bank lenders with a rapid 4-day turnaround, highlighting its efficiency compared to the larger banks​.

Business Loans

Business loan activity remained stable in November, with most states, including New South Wales, Victoria, and Queensland, recording a median of 2 applications submitted per broker. South Australia and the Northern Territory were slightly lower with a median of 1.5 applications per broker​.

Regarding loan values, business loans showed a slight bias toward lower-value transactions compared to commercial mortgages. The most common loan sizes were in the $50,001–$250,000 range (35% of brokers) and $250,001–$1 million range (34% of brokers). Only 11% of brokers submitted loans valued under $50,000, while 19% submitted loans exceeding $1 million. 

Westpac led lender usage for business loans with 22% of brokers submitting loans to them, followed closely by Shift (17%) and Commonwealth Bank (11%). The diversity in lender selection reflects competitive offers in working capital finance​.

Turnaround times for business loans remained slower for major banks, with NAB averaging 8.0 days, while ANZ (6.7 days) and Westpac (7.7 days) performed slightly better. On the other hand, non-bank lenders significantly outperformed, with Bizcap and Prime Capital delivering a rapid 1-day turnaround on average​.

Asset Finance

Asset finance recorded the highest volume of applications per broker, with a median of 3 applications submitted across most states. However, Victoria and Tasmania led with a higher median of 7.5 applications per broker, while Western Australia reported lower activity with a median of 3 applications​.

In November 2024, brokers submitted a larger number of asset finance applications than they did other types of commercial loan applications. The majority of applications (60%) had a value of less than $250,000. However, the report also noted some higher-value activity, with 1% of brokers submitting applications exceeding $5 million. This suggests a diverse spread of client needs, from smaller equipment financing to larger capital investments​.

Capital Finance was the most commonly used lender for asset finance, with 32% of brokers submitting applications to them. BOQ (26%) and Dynamoney (25%) also featured prominently, emphasizing a competitive market in this segment​.

Turnaround times for asset finance were among the fastest observed, with major banks like Westpac averaging just 1.3 days, followed by Commonwealth Bank at 2.6 days. Non-bank lenders performed even better, with Metro Finance and Capital Finance averaging just 1.0 days for decisions​.

Broker Flows

Each month, brokers report their satisfaction with each stage of their interactions with lenders, including BDM (Business Development Manager) support, the application process, credit assessment, and settlement. This month’s report reveals both standout performers and areas requiring improvement.

BDMs (Business Development Managers)

BDMs play a significant role in shaping the overall broker-lender relationship, and business banks and non-bank business lenders lead this category. ING, Bendigo Bank, Adelaide Bank, and Prime Capital all saw 100% satisfaction ratings over the last three months.

Application Process

The application process remained a strong point for major banks, with Westpac leading this group at 86% satisfaction. For business banks, ING sees another 100% satisfaction rating.

Credit Assessment

Credit assessment scores reflected a mix of high performers and areas for improvement. NAB led major banks with a 79% satisfaction rating, while Westpac and Commonwealth Bank followed closely​.

For non-major business banks, Bendigo Bank and Adelaide Bank both show an impressive 90% satisfaction rating, however, BankSA and Bank of Melbourne show only 33% satisfaction ratings.

Settlement

The settlement process often shapes brokers’ final impressions of a lender’s service quality. Westpac led major banks, with an impressive 87% satisfaction score, followed by NAB at 83%.​

Across the board, Westpac, NAB, ING, ORDE Financial, and Earlypay have strong satisfaction ratings. But lenders like BankSA and MoneyTech may need to adapt if they want to improve broker experience.

About this survey

This month, Broker Pulse surveyed 240 total brokers with 118 active commercial brokers sharing their experiences. The survey was conducted between the 1st and 20th of December 2024 to uncover brokers’ experiences with lenders through November of 2024. 

The survey asks participating brokers to share their experiences with the lenders they've used throughout the month. Brokers are asked to rate each lender's turnaround times, credit assessment staff, BDMs and their overall experience.

Broker responses are aggregated each month and distributed back to participating brokers and lenders to enable transparency across the market with the goal of improving consumer outcomes. This community-driven initiative is powered by brokers who want to unlock the collective experiences of their fellow brokers to make more informed decisions.