How to grow an SME broking client book: a practical playbook

Most commercial brokers don't grow by advertising. They grow because the people around small businesses, such as accountants, bookkeepers and other clients, keep sending deals their way. That happens when you're easy to refer: you answer quickly, you're straight about what's possible, and the client comes back happy.

This playbook breaks that down into habits you can build week by week.

1. Be known for fast, honest answers

The most useful thing you can give a referrer is a quick, honest read on a deal. "Yes, here are the realistic options" or "not right now, and here's why" both build trust. A slow maybe doesn't.

That depends on knowing lender policy well enough to rule options in or out early. Hard limits such as time in business, turnover, industry and ATO debt decide most deals before anyone looks at the detail. Our guide How SME lenders assess a deal covers them. Tools like Visro exist to make that first answer take minutes rather than days.

Habit: aim to give every new enquiry a clear first answer the same day.

2. Build a small number of strong referral partners

Accountants and bookkeepers see a business's numbers before anyone else. They often know a client needs funding before the client does. A handful of active referral partners can supply a steady flow of deals.

What tends to work:

• Start with the ones who already know you. Your own accountant, your clients' accountants, and people you've done a deal with before.

• Make it about their client. Accountants care that their client is looked after and that nothing reflects badly on them. Show how you keep them informed and how you handle declines.

• Report back. A short update when the deal settles, or when it doesn't and why, is what keeps referrals coming.

• Be clear about any referral arrangement. If you pay or receive referral fees, agree the terms in writing and disclose them as required.

Habit: one coffee a week with a current or potential referral partner.

3. Turn one-off deals into repeat clients

A business that borrowed once will probably borrow again, for stock, equipment, expansion or a refinance. Many brokers do one deal and never speak to the client again until the client has already gone elsewhere.

Simple ways to stay useful:

• Note the next likely need. When you settle a deal, write down when the client might need funding again, such as the end of a loan term, a seasonal peak or a planned purchase.

• Check in at sensible times. Before the busy season, as a short-term loan winds down, or around the end of the financial year.

• Review facilities annually. A quick review can show if a facility no longer fits the business, or if the business now qualifies for something better. A working-capital facility is a common place to start: see Business line of credit vs overdraft.

Habit: a calendar reminder for every settled client, set on settlement day.

4. Pick a niche you can explain in a sentence

"I help businesses get finance" is hard to refer. "I help trades businesses fund equipment and cashflow" or "I work with hospitality owners" is easy, because people can picture the client.

A niche also makes you better at the work. You learn which lenders like that industry, what the bank statements usually look like, and which questions to ask early.

The niche can come from your background, your existing clients or a referral partner's client base. It doesn't stop you taking other deals. It just gives people a reason to think of you first.

5. Stay in touch, within the rules

Regular, useful contact keeps you front of mind. A short monthly email on what's changing in lending, or a check-in message before the end of the financial year, can do that.

If you send marketing by email or SMS, the Spam Act 2003 applies. ACMA's guidance says you need consent, must identify yourself with accurate contact details, and must include a free, easy unsubscribe option, with unsubscribe requests honoured within 5 working days (ACMA). Keep a record of how each person consented.

Also handle client information carefully. Only use client details in ways the client would expect, and follow your privacy policy and any aggregator or licensee requirements.

Habit: one useful message a month to your client and referrer list, never a hard sell.

6. Handle declines well

Declines happen. How you handle them decides whether the client and the referrer come back.

• Tell the client quickly and plainly.

• Explain the reason, if the lender gave one.

• Say what could change the answer, such as more trading history, a payment plan or a different product.

• Set a reminder to revisit it.

A client who understands why they were declined, and what to do next, often comes back when things change, and often refers others. Sometimes the answer is a different kind of lender: see Bank vs non-bank business loans.

7. Track where your deals come from

Within a few months you'll see which referral partners, niches and habits produce settled deals. Put more time into those and less into the rest. A simple spreadsheet is enough: client, source, product, outcome, settlement date and next likely need.

A simple weekly rhythm

• Daily: first answer to every new enquiry the same day.

• Weekly: one referral partner coffee. Update every open deal and its referrer.

• Monthly: one useful email to your list. Check settlement anniversaries and upcoming needs.

• Quarterly: review where deals came from and adjust.

Sources

• ACMA: Avoid sending spam

This article is general information only. It isn't legal, financial, credit or marketing compliance advice and doesn't take into account anyone's circumstances. Check your obligations with your aggregator, licensee or a legal adviser. Visro does not provide credit assistance or financial advice.