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How to make the best money with specialist lending

One of the most common questions we get from financial advisors who are new to specialist lending is ‘how does the money side work?’. In a nutshell, it’s very easy and in your control.

The best bit is that it can set advisors up for two bites of the apple with the same client.

How it works with Southern Cross Partners?

For every new loan SCP approves we charge a combined application and set up fee of between 1% and 1.5% of the loan. Then, the financial advisor decides how much they want to charge for their fee and we write it into the loan agreement.

Generally financial advisors charge between 1% and 1.5% of the total value of the loan. We then pay this to the financial advisor upfront as soon as we lend money to the borrower. So on a million-dollar loan that’s between a $10,000 and $15,000 payment once the deal is signed.

These rates are considerably higher than what the traditional banks offer and unlike the banks we’ve structured our business to avoid drip feeding commission payments across the lifetime of a loan.

How can you get paid twice?

We see that the best financial advisors re-engage with the customers to figure out the best next step, prior to our loan agreement ending. If it’s right for your customers to move their loan to a traditional bank, you can facilitate this and move yourself to the traditional bank commission model. This means you enjoy the trail commission over the lifetime of the loan with a bank.