Brokers identify product policy as critical factor in commercial lender selection

The 2025 Third-Party Lending Report for Commercial Lending reveals what actually drives broker recommendations across Australia’s commercial lending market. Based on survey responses from over 460 commercial and asset brokers, the findings show that while relationships matter, policy flexibility often makes or breaks deal flow. 

Product policy emerges as the dominant factor across commercial mortgages, asset finance and business loans, but the devil is in the details of how brokers prioritise different elements for each lending type.

Key stats you need to know

• Commercial mortgages: 94% of brokers prioritise product policy, with credit assessment staff and BDMs tied at 92%.
  
  
• Asset finance: Product policy (94%) and product pricing (90%) are almost tied at the top.
  
  
• Business loans: BDMs take the crown at 92%, followed by product policy (90%) and credit assessment staff (88%).

Policy and people drive commercial mortgages decisions

• Product policy was cited as “extremely” or “very” important by over 94% of respondents.
  
  
• Credit assessment staff and BDMs were identified by 92% of brokers as being important factors for recommending lenders to clients.

For commercial mortgages, product policy dominates at 94% importance, encompassing everything from eligibility requirements and loan structures to compliance frameworks that determine whether a deal gets made. Credit assessment staff and BDMs tie at 92%, reflecting how commercial deals demand both technical expertise and relationship management that can’t be automated.

"Commercial lending is fundamentally a relationship business as you can't automate the nuanced judgment calls that complex deals require. That's why brokers value policy expertise and strong BDM support.” said Michael Johnson, Director at Agile Market Intelligence.

Asset finance brokers want policy flexibility and sharp pricing

• For asset finance, 94% of brokers cite product policy, making it the most important factor, followed by product pricing (90%).
  
  
• 89% of brokers cite BDMs as important factors in their lender recommendations, along with credit assessment staff at 88% emphasising the importance of knowledgeable internal support throughout the process.

Asset finance creates an interesting dynamic where brokers cite product policy and product pricing as the most important factors. The dual focus reflects the diverse nature of asset finance, where policy flexibility determines which equipment types, industries and deal structures a lender will support, and competitive pricing directly impacts client affordability and broker competitiveness. BDMs and credit assessment staff that act as knowledgeable partners also remain crucial relationship factors.

"Asset finance brokers need lenders who can deal with diverse deals while also pricing them competitively, tying together policy and pricing as important factors in this space,” said Michael Johnson.

Business lending puts relationships first

• BDMs take the top spot as 92% of brokers cite them as the most critical factor for recommending a lender for business loans.
  
  
• Product policy follows closely at 90%, with credit assessment staff at 88% highlighting the relationship-driven nature of business lending. 

For business loans, relationship factors dominate broker decision-making, with BDMs leading at 92% importance. This reflects the consultative nature of business lending, where cash flow analysis, industry knowledge and ongoing support throughout the complex application process can determine success. Product policy ranks second at 90%, emphasising how critical it is for lenders to have flexible criteria that can accommodate the diverse needs of different business types and industries. Credit assessment staff at 88% rounds out the top three, corroborating the importance of continuous support required.

"Business lending is all about relationships - brokers need BDMs who can navigate complex deals and underwriters who understand cash flow nuances." said Michael Johnson.

‍About the 2025 Third-Party Lending Report for Commercial Lending

The 2025 Third-Party Lending Report for Commercial Lending is the first annual review of lenders based on their commercial lending performance. This report contains data from a survey of over 460 commercial and asset brokers across Australia conducted by Agile Market Intelligence.