Mortgage Professional Australia issue 13.10

TOP 10 COMMERCIAL BROKERS WHO MADE THIS YEAR’S HALL OF FAME?

MPAMAGAZINE.COM.AU ISSUE 13.10

AMA FINALISTS THE CREAM OF THE CROP REVEALED DAMIAN PERCY WHY ADELAIDE BANK IS PUTTING BROKERS FIRST

EXCLUSIVE INTERVIEW

BRANSON

ON BUSINESS How to turn your business into an empire the Virgin way

EDITOR’S LETTER / 13.10

1 | OCTOBER 2013

CONTENTS / 13.10

38

COVER STORY

Branson on business Sir Richard Branson sets out how to turn a business into an empire

NEWS 4 | Round-up The latest market intelligence from the world of property, economics and mortgages 10 | Online The best from MPA Online and Australian Broker Online

18

MORTGAGE INSIDER

12 | News analysis How brokers can survive in a regulation-heavy business environment

Damian Percy

Adelaide Bank’s general manager explains what his institution is doing for brokers

FEATURES

WEEKLY INVESTIGATIONS NOW ONLINE: How to get your brokers off to a flying start How elections impact on property values mpamagazine.com.au

24 | Top 10 Commercial Brokers 2013 MPA reveals the brokers who are writing tremendous business in the commercial space 42 | AMA finalists Finalists for the 12th Annual Australian Mortgage Awards revealed

BUSINESS STRATEGY 54 | Time management Why a change in mindset can do wonders for business as well as your stress levels

58 | Client communication: digital vs analogue Where old-school communication fits into today’s increasingly digital world

MORTGAGE INSIDERS 62 | Day in the life AFM managing director Tanya White talks MPA through a typically busy day 63 | Favourite things Connective head of sales and business development Michael Goerner on Paris, One Flew Over the Cuckoo’s Nest and medium rare beef

OCTOBER 2013 | 1

EDITOR’S LETTER / 13.10 COPY & FEATURES

EDITOR Robin Christie JOURNALIST Amy Rosenfeld PRODUCTION EDITOR Roslyn Meredith CONTRIBUTORS Anders Sorman-Nilsson, Nikki Heald

TOOLS FOR SUCCESS At MPA we’re positioning ourselves as essential reading for entrepreneurial brokers who are thirsty for the thought leadership that will help their businesses thrive. We’re therefore proud to present our ground-breaking interview with one of the world’s most recognisable and successful entrepreneurs, Sir Richard Branson.

From the importance of having the right people and the confidence to delegate to them, to branding and marketing the intangible yet essential service mortgage brokers provide, Branson offers some eye-opening business strategies.

This issue also celebrates the brokers who have made our coveted Top 10 Commercial Brokers list for 2013. If you’re looking for advice on how to branch out into the commercial market, the counsel offered by these experts is delectable food for thought.

Our Australian Mortgage Awards preview further confirms the home-grown mortgage broking talent the Lucky Country has to offer. We look forward to seeing you at this year’s event!

Robin Christie, managing editor, MPA

2 | OCTOBER 2013

ART & PRODUCTION

ART DIRECTOR Jonathan Phillips SENIOR DESIGNER Rebecca Downing DESIGNER Red Redrico

SALES & MARKETING NATIONAL SALES MANAGER Rajan Khatak ACCOUNT MANAGER Simon Kerslake MARKETING EXECUTIVE Anna Farah TRAFFIC MANAGER Abby Cayanan

CORPORATE CHIEF EXECUTIVE OFFICER Mike Shipley MANAGING DIRECTOR Claire Preen CHIEF OPERATING OFFICER George Walmsley MANAGING DIRECTOR – BUSINESS MEDIA Justin Kennedy ASSOCIATE PUBLISHER Rajan Khatak CHIEF INFORMATION OFFICER Colin Chan HUMAN RESOURCES MANAGER Julia Bookallil Editorial enquiries Robin Christie tel: +61 2 8437 4787 robin.christie@keymedia.com.au

CONNECT

Contact the editor: robin.christie@ keymedia.com.au Printed on paper produced from 100% sustainable forestry, grown and managed specifically for the paper pulp industry

Advertising enquiries Sales Manager Rajan Khatak tel: +61 2 8437 4772 rajan.khatak@keymedia.com.au Account Manager Simon Kerslake tel: +61 2 8437 4786 simon.kerslake@keymedia.com.au Subscriptions tel: +61 2 8437 4731 • fax: +61 2 9439 4599 subscriptions@keymedia.com.au Key Media keymedia.com.au Key Media Pty Ltd, Regional head office, Level 10, 1–9 Chandos St, St Leonards, NSW 2065, Australia tel: +61 2 8437 4700 • fax: +61 2 9439 4599 Offices in Auckland, Singapore, Manila, Toronto, Denver mpamagazine.com.au Copyright is reserved throughout. No part of this publication can be reproduced in whole or part without the express permission of the editor. Contributions are invited, but copies of work should be kept, as MPA magazine can accept no responsibility for loss

NEWS / ROUND-UP

ASSOCIATIONS

CREDIT

MEMBERSHIP NUMBERS SWELL FOR MFAA, FBAA

Both the MFAA and the FBAA have experienced a substantial influx of members, despite the former’s termination of 1,100 members who failed to meet educational requirements.

The MFAA said total numbers had again broken through the 10,000 mark, with 117 new members signing on in July alone, while the FBAA announced a 35.5% growth in membership over the 2012/13 financial year and a “staggering” 129 new members in one month.

MFAA CEO Phil Naylor said that around 400 of the members who were terminated earlier this year had been readmitted to the MFAA after meeting the diploma standard, meaning that more than 95% of the total membership prior to the cancellations have now achieved diploma or equivalent status.

4 | OCTOBER 2013

MEN MORE CREDIT HUNGRY THAN WOMEN

STATS

$15.26tn Australia’s housing finance figure for owner occupation Source: ABS Lending Finance, Australia, June 2013

Men are currently responsible for the majority of credit applications, according to a recent analysis by Credit Repair Australia.

The analysis, which was based on 1,500 individuals’ credit reports, focused on Australians who were looking for some form of credit over the last three months and found that almost seven out of 10 applications had come from men.

“Typically we saw more males (68%) applying for credit versus females (32%). The average age of the applicants applying for credit was 32 years old. The majority of applicants had a full-time job (72%), and were earning an average of $1,197.90 per week,” said Credit Repair Australia CEO Richard Symes. “In addition, the analysis showed that most of the credit applications were from Victoria, although they were closely followed by New South Wales residents.”

The analysis also found that a large proportion of individuals had a low credit score (below 700), which was usually caused by some sort of negative listing on their credit report.

“This means that a lot of individuals looking for credit, who have the ability to service a loan, will be declined,” said Symes. “In fact, approximately one in 10 Australians have a black mark on their credit report. There are a lot of individuals who will find themselves unable to get approved or end up paying higher interest rates as a result.”

In terms of how the next three months will pan out, Symes believes that – based on the data collected by Credit Repair Australia – Generation X will continue to drive growth in credit applications.

INFOGRAPHIC

CREDIT APPLICANT CHARACTERISTICS SEX

32% Female

68% Male

EMPLOYMENT STATUS AVERAGE AGE

32

AVERAGE INCOME

$1,197.90 per week

28% Other

72% Full-time

MPAMAGAZINE.COM.AU

OCTOBER 2013 | 5

NEWS / ROUND-UP

OWNERSHIP

SETTLEMENTS

PROPERTY TRUMPS MARRIAGE AND KIDS

Owning a home, or paying off your home sooner, are higher on the priority list for most Australians than getting married and having children, according the latest Westpac Home Ownership Report.

The survey revealed that owning a home or paying off the mortgage are top priorities for 57% of Australians already with a home or planning to buy within the next 12 months, while having children and getting married rated at 8% and 5%, respectively.

“The Westpac Home Ownership Report reinforces how important owning a home is to Australians and it’s striking that people are prioritising this ahead of kids and marriage. The report has also shown that Australians need advice to help them own their home sooner,” said general manager of Westpac mortgage broker distribution Tony MacRae. In response to finding that 37% of Australians who have a home loan have an offset account, but 36% of them don’t actually understand how an offset works, Westpac has developed an offset calculator that allows borrowers to work out how much time they can reduce on their home loan term and how much money they can save by using an offset account.

Brokers, too, are being offered increased support in the form of free property insight seminars, free property report information from RP Data, as well as online tools.

“We are the only major bank with an iPad app made specifically for brokers,” said MacRae. “Our Broker Hub Toolkit’s designed features are perfect for mortgage brokers to take their clients through the home loan journey.”

INFOGRAPHIC

LIFETIME PRIORITIES

10% Travel

25%

Pay off my home loan sooner

32% Own my own home

6 | OCTOBER 2013

the world

8%

AGGREGATOR ANNOUNCES RECORD SETTLEMENTS

STATS

45% The share of the mortgage market held by brokers Source: MFAA quarterly market statistics survey; comparator analysis

7%

Have children Put more into a savings account

6%

Put more into my retirement savings/superannuation fund

5%

Own an investment property/pay off my investment property mortgage

5%

3%

Get married Start a business

1% Own a car/pay 2% None of these off my car loan

Connective’s broker membership has recorded its ‘best ever’ settlement months, settling $1.73bn and $1.71bn in May and June, respectively. Connective principal Glenn Lees predicts more milestones will topple in the coming months, including the milestone of reaching $2bn in settlements by the end of this year.

“We are witnessing growth across all markets.

Our more established eastern-seaboard markets continue to perform and we’re gaining traction in strategic locations of focus, such as Western Australia, where we’ve experienced 67% year-on-year growth over the past 12 months,” he said. “We devote considerable resources to assisting our members to operate more efficient and profitable businesses, and these latest figures demonstrate that our strategies are working.”

MPAMAGAZINE.COM.AU

OCTOBER 2013 | 7

NEWS / PRODUCT ROUND-UP

PRODUCT NEWS Your bite-sized guide to the industry’s newest products and initiatives WHO: WESTPAC

WHO: CBA

WHAT: Free RP Data Property Profile reports via Westpac’s iPad app

WHAT: Fixed-rate price guarantee

KEY FEATURES: • Westpac’s iPad app can now be used by its Platinum and Advantage Plus tiered broker groups to download free Property Profile reports by RP Data.

• The free reports provide key property information and are available in the resources section of the app, under Westpac’s ‘Broker Hub Toolkit’.

• The app also offers access to online resources, including up-to-date Westpac product specifications, the Premier Advantage Package brochure, General Insurance information and a Mortgage Journey Guide to assist customers.

KEY FEATURES: • CBA has announced it will beat the advertised rates on one- to five-year fixed-rate home loans from ANZ, NAB, Westpac, St.George, and Bank of Melbourne.

• The offer is available to new and existing customers who take out a new fixed-rate home/investment home loan or switch to a fixed-rate home/investment home loan.

• The fixed-rate guarantee ends 30 September.

• CBA has also announced it will cut interest rates on new three-year fixed-rate home loans to 4.89% p.a.

They say: “Some of our fixed home loan rates are at 20-year lows, so now is a great time for customers looking for a guaranteed rate across either the short to medium term” – CBA acting executive general manager for retail products and customers, Clive van Horen We say: The competition’s hotting up in the fixed-rate space.

TO STAY UP TO DATE WITH ALL THE LATEST PRODUCT NEWS AND INTEREST RATE ALERTS, VISIT MPAMAGAZINE.COM.AU

8 | OCTOBER 2013

NEWS / MULTIMEDIA

OCTOBER 2013 | 9

NEWS / MULTIMEDIA

ONLINE The latest highlights from MPA Online IN MOTION The latest from MPA TV

ONBOARDING NOT JUST A ‘PAPER GATHERING EXERCISE’

We caught up with Peter White, FBAA national resident, to see what is big on the agenda and what the mortgage industry should be prioritising.

WESTPAC RESCUE HELICOPTERS ANNOUNCED AS AMA 2013 CHARITY PARTNER

Westpac Rescue Helicopters has been proudly announced as charity partner for this year’s Australian Mortgage Awards .

SAY WHAT? THE BIGGEST QUOTES FROM THE MONTH

“All the naysayers jump online and complain and good luck to them, but we all work in the same office together and not one person in my team is lazy”– Trilogy Mortgages owner Ed Nixon defends the concept of paying salaries to brokers

“It feels to me like brokers are trying to communicate to everybody, and when you do that you communicate to nobody”– Tank Branding executive creative director Jim Antonopoulos on why brokers must differentiate themselves in a competitive market

“I’ve really moulded my business around who I am, what I am, what my values are and that’s just made me so honest.

I’m just doing exactly what I love for the right reasons.”

– Pink Finance founder Nicole Cannon on being the sole broker in her business for four years

10 | OCTOBER 2013

HOW BROKERS CAN LEARN TO DELEGATE ‘Entrepreneur’ author and business consultant Victor Cheng offers three ways brokers can learn to pass the baton: 1. Document the process “In most small businesses, the knowledge about how to do everything is stuck inside the entrepreneur’s head,” says Cheng. “In situations where employees lack knowledge, the employees will either guess what is supposed to be done or constantly pepper you with questions that take longer to answer than just taking action yourself.”

Cheng suggests three ways to document step by step how to complete a commonly performed task: •• Write a procedural manual on how to perform a task.

•• Create a checklist describing the steps – assuming your employees already have the skills to do each step but often forget or skip steps.

•• Make a video using your smartphone as you perform the task, explaining aloud what you are doing and why you are doing it.

2. Document decision-making guidelines “To grow a business without driving yourself crazy, you can’t delegate only the tasks to others. You have to delegate decisions to others as well,” says Cheng.

“The key to getting others to make good decisions is to provide them with the implicit decision-making guidelines you personally use.”

In Cheng’s own business, he gave his employees three key criteria he would use to evaluate any customer-service related decision, and asked them to follow those, rather than ask him, if a decision came up.

“So far, they have made the same decision I would have made 98% of the time. Best of all, there have been virtually no meetings, phone calls or emails to discuss these decisions.”

3. Create a schedule “Most entrepreneurs subscribe to the philosophy, ‘If you want something done right, you have to do it yourself’. This mantra, accepted by many small-business owners as fact, is only half true,” Cheng says. “If you want something done right once and you have no other time commitments, then the fastest way, in fact, is to do it yourself. However, if you want something done right repeatedly, day in and day out, all day long, and you don’t have the time to do 10 full-time jobs all at once, you can’t do it yourself.”

TO FIND OUT MORE...

To find out more on all of these stories, as well as the latest business strategy advice, special reports, profiles, news, views and analysis, visit mpamagazine.com.au

NEWS / MULTIMEDIA

OCTOBER 2013 | 11

NEWS ANALYSIS / COMPLIANCE

Cutting through the

red tape Brokers are no strangers to compliance burdens, but it’s not only NCCP that’s creating a mountain of red tape. Amy Rosenfeld investigates the compliance requirements that brokers face as businesspeople in 2013 Small-business owners are drowning in unnecessary and overcomplicated paperwork, say experts, and it’s hitting brokers harder than most.

Peter Strong, president of the Council of Small Business of Australia (COSBOA), says the financial services sector struggles with a “stupid” amount of regulations, compounded by the fact that a large number of mortgage businesses are sole proprietors.

“We’re talking about pressure on an individual.

We’re people first in small business; we’re not businesses that then maybe are people. It’s nearly always one person or a couple who own the business so they’ve got all this pressure on them.”

According to a recent report released by the 12 | OCTOBER 2013

Productivity Commission, small businesses account for 95% of the country’s enterprises and represent over 40% of the public sector workforce.

The fact that small businesses spend an average of five hours per week on compliance and regulation is therefore a serious concern for the country’s productivity, the commission found.

“Small businesses feel the burden of regulation more strongly than other businesses,’’ their report said.

“A small business is not just a big business on a smaller scale but one that operates in a fundamentally different way, and may lack the time, knowledge and often motivation to distil the relevant compliance requirements.”

MPAMAGAZINE.COM.AU

SUPER TROUBLES Superannuation requirements are particularly burdensome for small-business owners, Strong says.

In his recently recorded tongue-in-cheek music video, Red Tape Nation, which Strong created to raise awareness of the plight of small businesses, he rhymes: “Now I’m a slave for the whole nation, collecting all their superannuation, and nobody seems to give a damn the collection process is one big scam.”

Between fringe benefits tax, PAYG (pay as you go), occupational health and safety and many other compliance requirements, brokers are consistently losing the battle to maintain a worklife balance, Strong says.

“We just want, like everybody else, our weekends back, our Sunday mornings, our evenings. We’d like to spend a bit more time with the kids or walking the dog, but at the moment, because of a lack of understanding that we’re people but we happen to own businesses, we lose the ability to have that time to ourselves.”

MFAA CEO Phil Naylor says the Fair Work regulations, in particular, are not conducive to the flexible way in which small businesses, and especially brokers, operate.

“I think the key point about small business regulation is that, while there are a myriad of regulations that they must be aware of ( just as there are for big business), in the case of small business

“We just want, like everybody else, our weekends back, our Sunday mornings, our evenings” Peter Strong, president, COSBOA

OCTOBER 2013 | 13

NEWS ANALYSIS / COMPLIANCE

it is usually one person – the owner – who has to keep on top of all that, as well as carrying out their main function, in our industry’s case, as a broker.

Brokers don’t have the luxury of having a team of experts on tap to ensure all the various regulatory obligations are adhered to.”

TOP THREE ISSUES BROKERS THINK WILL IMPACT ON THEIR BUSINESSES IN THE NEXT YEAR

NO QUICK FIX According to a recent report to the Treasury, BAS (business activity statement) compliance is considered the most burdensome of all compliance obligations, taking an average of 2.1 hours per quarter to complete for small businesses. But the report emphasises that concerns over tax compliance do not stem from one single aspect of the system.

“Rather, changes to, and the accumulation of, regulation at all levels of government appear to be the problem,” the report says. “Consequently, there is no simple ‘quick fix’, and improvements are only likely to be achieved through concerted effort by governments across jurisdictions.”

In recent years there has been an improvement in the efforts of regulatory authorities to understand small business, says Strong, with a number of government departments opening smallbusiness divisions.

“So, instead of just being piecemeal, they’re looking at it from a holistic point of view. You can see that the people in power get it and they’re trying to change those attitudes.”

Despite certain “areas of concern” about levels of documentation, FBAA president Peter White says brokers are in a much better place compliance-wise than they were prior to the introduction of NCCP. “Responsibilities for responsible lending conduct are far more stringent, which is a good thing. Disclosure is far more extensive and transparent, but we still need to mature in this new environment as it is still evolving and developing and we are, in some areas, still getting used to it.”

The high level of paperwork imposed on brokers, however, needs rationalisation, says White.

“It is an enormous impost on the broker’s time, which costs money, and borrowers rarely read every piece of paper they get (including T&Cs of loan contracts and mortgages, etc.), so there needs to be a review on such things.”

But White stresses that the onus comes back to brokers to ensure they are keeping up with their responsibilities.

14 | OCTOBER 2013

58%

Attracting enough new clients

52% Improving and maintaining profitability

50%

Managing compliance tasks and risks

Source: Macquarie Practice Consulting 2012 Mortgage Broking Benchmarking Report

“Brokers don’t have the luxury of having a team of experts on tap to ensure all the various regulatory obligations are adhered to” Phil Naylor, CEO, MFAA

MPAMAGAZINE.COM.AU

OCTOBER 2013 | 15

NEWS ANALYSIS / COMPLIANCE

MORTGAGE BROKING EXPENSES Individual “Don’t be complacent. Your obligations are well documented under the regulations for NCCP, and you must comply; if you don’t, you will get caught out. Read the regulations and seek independent advice from people who know what they’re talking about.”

36%

HELP AT HAND White also warns brokers about overcomplicating regulations or communications from regulatory bodies, and suggests brokers “respectfully dumb it down”.

“Look at the subject matter, read what is expanded upon, and then apply that to how a brokerage business operates. It won’t answer all your questions but it normally helps you understand what is being said.”

Various helplines, such as the recently improved facilities offered by the ATO, are a wealth of information for small-business owners, says Strong.

He also suggests brokers join an association that has the facilities to aid them in the compliance process.

“Every regulator I talk to says they have fewer problems with businesses who are members of an association than they do with anyone that’s not a member.

“They know how to communicate with people in the industry, what language to use, the problems they face. There’s no such thing as ‘small business’; that’s a description of an economic unit. What there are are truck drivers, doctors, mortgage brokers… We’re people and we communicate differently for different groups, so you need to find someone who understands you.”

COMPLIANCE RESOURCES WEBSITE COSBOA cosboa.com.au ATO FBAA MFAA

PHONE (02) 6100 4404

ato.gov.au

13 28 66

fbaa.com.au

(07) 3847 8119

mfaa.com.au

1300 554 817

13%

“It is an enormous impost on the broker’s time, which costs money, and borrowers rarely read every piece of paper they get” Peter White, president, FBAA

39%

12%

2–3 staff

25%

20%

40%

15%

4+ staff

21%

26%

42%

11%

Staffing Client communication/marketing Premises and technology Administration Source: Macquarie Practice Consulting 2012 Mortgage Broking Benchmarking Report

16 | OCTOBER 2013

MPAMAGAZINE.COM.AU

OCTOBER 2013 | 17

HEAD TO HEAD / DAMIAN PERCY

PUTTING BROKERS FIRST

Damian Percy is a man who isn’t afraid to speak his mind, as we discovered at MPA when we quizzed Adelaide Bank’s general manager, third party lending, about the state of the market, what brokers need to hear from lenders, and why his organisation aims to put them in the driving seat

18 | OCTOBER 2013

MPAMAGAZINE.COM.AU

MPA: Reports of uplift in the housing market have become more frequent of late. How optimistic should brokers be that the GFC hangover has ended?

Damian Percy: Regardless of whether or not you think we should be breaking out the Berocca, there is clearly a shift happening. In cities such as Sydney, which is generally regarded as the city that leads the Australian residential property market, real estate agents are letterboxing people seeking listings in some areas, particularly for larger three-bedroomplus homes in the sub-$750k range. That’s a pretty strong indicator of increasing demand.

MPA: Why is demand increasing?

DP: In my view, we simply aren’t building enough houses. Three hundred thousand babies are born every year; 145,000 people die, 190,000 people migrate to Australia, and about 15,000 leave permanently. That’s an increase in Australia’s population of 330,000. Our friends in the Housing Industry Association and Real Estate Institute of Australia (with whom we have a strategic alliance) are telling us that Australia is on track to build just 143,800 homes this year. That’s down significantly from 2003, when we built 168,580 homes. That’s significantly down on the most recent 10-year average of 155,000 new builds.

There are also 15,000 fewer builders in the game compared to five years ago, and you can’t train new ones overnight. So we’re building 25,000 fewer homes than we did a decade ago, while our population is steadily rising. I’d say that’s bound to create an uplift, but what worries me is affordability – and I think people will have to work harder on a strategy to save that all-important first deposit and make their savings work harder if they want to upsize.

Though I appreciate it’s not a public position often taken by lenders, the national interest is not served by house price inflation exceeding wages

“We’re of the view that banks should spend as much time assisting people in reducing their debt as they do providing it in the first place” OCTOBER 2013 | 19

HEAD TO HEAD / DAMIAN PERCY

“I think brokers are tired of hearing advice from lenders as to how they should be running their businesses”

growth. No one cheers on price increases in food and transport, and if you’re serious about the social and economic value in people owning their own homes, you shouldn’t be cheering on rampant increases in house prices.

We need state and local governments to (a) assist in improving the supply of new stock by removing impediments to the speed and cost of bringing on new developments and (b) increase mobility through reductions in transactional charges like stamp duty if we are to avoid a deterioration in affordability over the medium term.

MPA: Are there any sectors of the market that are seeing an increase in activity from your perspective?

DP: I’ll keep this short as there are property ‘markets within markets’ across Australia and our brokers can also gain some insights through the quarterly Adelaide Bank/REIA Housing Affordability Report as a ‘value add’. I think increasingly we’re going to see a lot of knock-down/rebuilds of post-war housing stock closer to the cities and public transport routes as people decide that longer commutes are wearing them down and the ‘war on cars’ gathers momentum.

I think the east coast trend of moving from Melbourne and Sydney to the mid and far north coast of New South Wales and southeast Queensland will continue, and in the west I’d expect more

20 | OCTOBER 2013

southern migration to continue along the rail and new freeway routes.

MPA: You’ve described the post-GFC credit growth environment as the ‘new normal’. How can brokers reposition their businesses to thrive in today’s moderate credit growth environment?

DP: With the overall market growing now at a slower rate than many markets participants ‘grew up with’ – and I include the whole sector here – for all of us it is simply a matter of adjusting our expectations and business models to accommodate a more subdued environment.

The additional challenge for all is to avoid doing anything too silly as the adjustment takes place.

Now is not the time to be cutting corners or reverting to some of the pre-GFC practices that reflected the irrational exuberance of the time.

MPA: What do you think are the skills that brokers need to be successful in today’s market?

DP: To be honest, I think brokers are tired of hearing advice from lenders as to how they should be running their businesses. Brokers know broking better than lenders, so I’ll leave it to more appropriately qualified parties to comment.

MPAMAGAZINE.COM.AU

OCTOBER 2013 | 21

HEAD TO HEAD / DAMIAN PERCY

MPA: You’ve championed the idea of lenders coming together to standardise front-end procedures and reduce complexity for lenders, brokers and valuers. How close is this to happening?

DP: I remain optimistic that the very obvious benefits of streamlining and standardising significant parts of the process will ultimately overwhelm the natural tendency of lenders to consider their own versions of the world to be special. That said, I’m not sure what needs to happen to bring about that particular epiphany. I’ll certainly keep advocating for change.

MPA: How else do you think lenders can work towards improving service and productivity through the broker

“Most banks have to take their retail offering and make it work for intermediaries. We have the freedom to build for the third party sector from the ground up” they propose reinforce and promote the broker relationship.

channel?

DP: By recognising that they/we are also part of the problem.

MPA: You’ve described Adelaide Bank as truly a ‘broker only’ bank. What advantages do you think this gives Adelaide Bank over its competitors in the broker space?

DP: We deal exclusively with mortgage managers and brokers. The absence of a retail model means we can focus entirely on our partners, their clients, and creating value for each. Most banks have to take their retail offering and make it work for intermediaries. We have the freedom to build for the third party sector from the ground up.

It’s also the little things. When broker customers ring our call centre, they’re talking to staff who only deal with third party customers. They’re dealing with staff who know that every customer they are speaking to was introduced to us through a broker, and the language they use and the solutions

MPA: In MPA’s Banks on Brokers issue this year, you mentioned ‘rejuvenation’ as Adelaide Bank’s big plan for the year ahead. Have there been any developments on that front that you’d like to share?

DP: We’re investing heavily in the broker offering to rejuvenate our Adelaide Bank-branded proposition and ensure that we’re putting brokers first in everything we do. We’re making some significant changes to the way we assist our brokers and customers to improve our communications with them, and we are adjusting our rate and fee structure as well.

We also recently launched our new online banking platform, and we’ll be introducing an automated, dynamic budgeting tool in a few months’ time to further assist our customers with managing their finances.

We’re of the view that banks should spend as much time assisting people in reducing their debt as they do providing it in the first place.

DAMIEN PERCY’S CAREER TIMELINE

22 | OCTOBER 2013

1985-99

1999

2007

2009

2012-present

Various roles in the general insurance industry, including administration, distribution, business development and marketing. Between roles, finds time to complete BA, meet wife and get married.

Joins Adelaide Bank as insurance manager.

Appointed head of mortgage strategy, precipitating a global collapse in debt and capital markets.

Adelaide Bank merges with Bendigo Bank to form Bendigo and Adelaide Bank.

Given responsibility for Bendigo and Adelaide Bank Group’s intermediated lending,

Focused on growing the intermediated lending businesses, including repositioning the Adelaide Bank brand’s broker-exclusive offering.

2001 Completes Bachelor of Law.

2002 Shifts from insurance to banking as a result of appointment to head of mortgage management.

2010 Elected to MFAA Board.

2012 Assumes additional accountability for the group’s mortgage processing operations.

MPAMAGAZINE.COM.AU

OCTOBER 2013 | 23

SPECIAL REPORT / TOP COMMERCIAL BROKERS

Top 10 Commercial Brokers 2013

These brokers are writing tremendous business in the commercial space.

How do they do it? MPA reveals all

24 | OCTOBER 2013

A message from our sponsor

R

esidential property market movements may grab the headlines, but Australian businesses would be crippled without the services of the hard-working commercial brokers who help them to finance their purchases of property and other assets.

If you’re on the lookout for an additional revenue stream, then recent statistics suggest that commercial broking may well be an area worth exploring. According to CBRE data, commercial property sales (office, retail and industrial sales valued at over $5m) reached the $16bn mark in the 2012/13 financial year. This was a rise of 12% on the previous year. Meanwhile, the continued onward march of the SMSF sector is helping to drive commercial deals at the sub-$5m end of the spectrum.

As reported in the commercial lending feature in MPA 13.5, the market may not be booming, but optimism prevails, and this year’s MPA Top 10 Commercial Brokers certainly prove that hard-working professionals in the commercial broking space are still notching up some mightily impressive settlement figures.

Who made the top 10? Turn the page for this year’s rundown, and to learn the secrets to their success in the commercial broking sector.

It is a great pleasure for Thinktank to be associated with this year’s MPA list of Top 10 Commercial Brokers. We wish to congratulate the successful brokers and acknowledge their achievements in what continues to be a competitive and challenging environment.

The brokers on the list are a diverse group not only in terms of their location in metropolitan and regional areas across the country but also in the mix of their deals and how they managed to produce the results that have culminated in this significant achievement. It demonstrates that there is no single formula to success in commercial broking. Yet there are common traits among the most successful people and businesses that others can both aspire to and borrow from. We very much encourage you to read the personal stories of each of the top 10 brokers, and consider the many and various positive strategies upon which they have crafted their approach to servicing their client base.

The MPA Top 10 Commercial Brokers list does more than shine a light on individual success stories. It proves the valuable intermediation role of the broker; it goes to demonstrate the depth and breadth of the commercial market, and it serves to highlight the opportunities that abound for lenders and brokers alike by working successfully together.

We fully expect the percentage of broker-introduced deals to increase in the area of commercial lending, and we are proud to be associated with and support that trend.

Jonathan Street CEO, Thinktank Commercial Property Finance

OCTOBER 2013 | 25

SPECIAL REPORT / TOP COMMERCIAL BROKERS

10

GRAEME MARTIN Commercial manager, Nixon Finance

What do you put your success down to?

A number of things. First and foremost, service; secondly, knowing your client and, thirdly, knowing the policies of each financial institution so that you can structure and face the loan to suit.

Which area of commercial lending do you focus on and why?

Anything of a business or commercial nature. We don’t specialise in any specific type of industry and there are no types of industry that we won’t do.

What prompted you to move into commercial broking?

I’ve been in the business banking and corporate banking world for 15 years so commercial broking was a natural progression because that’s where my skill set fits.

Total value of commercial settlements 2012/13: $27,157,000 Number of commercial loans settled 2012/13: 26 Number of support staff: 1 Years as a commercial broker: 6 What advantages does commercial broking have over residential broking?

I think residential broking is very much an automated type of assessment process; it either fits the box or it doesn’t. And generally it’s a one-off transaction, with possible smaller flow-on effects, whereas commercial is varied. It’s a lot more interesting. Every deal is different and every deal has its own issues. It’s a lot more solutions driven and a bit more challenging.

What advice would you give to brokers who are looking to move into the commercial space?

Do your homework. Learn. Speak with people; speak with bankers … because it takes time to build client bases and experience. Residential lending you can learn reasonably quickly, but commercial lending is very different, and your clients will find out very quickly if you’re not 100% on what you’re doing.

How has the commercial market fared over the past year?

The market’s been a bit more challenging. Finance has been a bit tighter; policies are tighter. There’s not as much growth; commercial investment has slowed somewhat, but there’s also a lot of opportunity to refinance and better structure businesses that might be under pressure because they’re not set up correctly.

What are your thoughts on what the future holds for the commercial market over the next year?

I think it’s coming back a bit more now. I think a few more residential brokers are trying to tap into the commercial broking market. I think residential has been a bit slow too, so brokers are trying to diversify.

So there might be a little more competition, but if you serve your clients promptly and efficiently you’re a step ahead of your competition because clients do come back and they will refer you.

Graeme Martin

26 | OCTOBER 2013

“Do your homework. Learn. Speak with people; speak with bankers ... it takes time to build client bases and experience”

9

DANIEL DUMBLE Director, Arete Finance

Total value of commercial settlements 2012/13: $27,500,000 Number of commercial loans settled 2012/13: 9 Number of support staff: 0 Years as a commercial broker: 2

What do you put your success down to?

Very good referral networks and the ongoing support of my clients. At a client level, delivering results beyond their expectation. It’s not enough to just facilitate a loan; you must be an ongoing valued adviser to their business and proactively introduce solutions that will be of benefit.

Which area of commercial lending do you focus on and why?

I split my focus between commercial and agri-lending.

Commercial clients are usually in larger retailing, manufacturing, wholesaling, distribution and/or property investment. Agri clients are farmers, graziers and processors. I have a strong interest in these styles of businesses and they match my varied banking experience.

What prompted you to move into commercial broking?

I’ve always wanted to start my own business and I got to a point where I realised if I didn’t do it soon I never would. Broking was a natural progression after many years working in the banks. It’s a lot more rewarding working directly for my clients’ best interests.

What advantages does commercial broking have over residential broking?

Larger, more complex transactions that require an in-depth understanding of a client’s business. Over time, and once you’ve shown your worth, you can become a valued adviser to their business.

What advice would you give to brokers who are looking to move into the commercial space?

If you have a commercial banking background, align yourself with a few good clients that will come on board straight away, before taking the plunge.

If you’re a residential broker, seek an experienced commercial broker to partner with or mentor you.

I’ve seen many residential brokers lose sizeable, complex commercial deals as they don’t have the experience to know where to add value.

Daniel Dumble

How has the commercial market fared over the past year?

Reasonably well. Banks are doing deals for good-quality clients. Cashed up businesses or investors are prepared to intelligently invest for the right assets at the right price. Good businesses are also able to demand better pricing, loan/security structuring and conditions from lenders.

What are your thoughts on what the future holds for the commercial market over the next year?

The market will remain cautious; however, the ongoing low interest rate environment will spur some investment and refinance activity. It’s certainly a good time for businesses to review their lending to ensure they’re getting the best deal.

OCTOBER 2013 | 27

SPECIAL REPORT / TOP COMMERCIAL BROKERS

8

SCOTT SMITH Director, Cairns Finance

What do you put your success down to?

Established industry reputation and experience provide good contacts and networks, with opportunities presenting as a result.

Which area of commercial lending do you focus on and why?

Construction and development finance used to be the cornerstone of the business, but post-GFC I’ve used my personal experience across a wide range of commercial finance products to continue to support a growing client base.

“Don’t overstep your abilities by diversifying into unknown territory. Instead, align yourself with a commercial broker and share commissions as you learn”

Total value of commercial settlements 2012/13: $43,172,860 Number of commercial loans settled 2012/13: 58 Number of support staff: 1 Years as a commercial broker: 7 What prompted you to move into commercial broking?

The frustration of only representing one brand whilst a senior relationship manager, which meant that several opportunities to assist clients were lost due to a relatively narrow band of available product; along with the frustration of giving up strong business relationships with clients as I was promoted up the ladder.

What advantages does commercial broking have over residential broking?

A greater range of solutions are available to look after the client from both a business and personal financial position.

What advice would you give to brokers who are looking to move into the commercial space?

Don’t overstep your abilities by diversifying into unknown territory. Instead, align yourself with a commercial broker and share the commissions as you learn through experience. Your clients will benefit from genuine value being added, and you will retain a satisfied client as a result. Banks over the years have struggled initially (and some say ongoing) with diversification into wealth and insurance markets – don’t be a victim of this yourself, and don’t have your clients suffer through trying to set deals that the particular broker is not experienced to handle.

How has the commercial market fared over the past year?

Six months’ lead time on the federal election has definitely seen things soften as SMEs often seem to reserve business decisions for after the election.

They’ve been doing so for the 27 years I’ve been involved in finance and they still continue to!

What are your thoughts on what the future holds for the commercial market over the next year?

Scott Smith

28 | OCTOBER 2013

Hopefully the business will return to more normal settings and SMEs will get on with it; hopefully they’ll also be given incentive to do so by the government of the day.

7

NEDIR ELHAJJE Director, Viclend

Total value of commercial settlements 2012/13: $43,323,332 Number of commercial loans settled 2012/13: 35 Number of support staff: 1 Years as a commercial broker: 10

What do you put your success down to?

Being honest and realistic about what can be achieved. Valuing both lender and client relationships, and being myself.

Which area of commercial lending do you focus on and why?

I don’t focus on any area. I take what comes my way, figure it out, and get it done.

What prompted you to move into commercial broking?

“Too many brokers just pass on the client’s number to a business banker or have the business banker process the whole application. Our job is not just to fill out the form and send it”

Home loan lenders went a little cuckoo following the credit crisis, and one of the banks, who had a strong business banking area, was still assessing loans in a realistic and practical manner. After getting a few development deals approved, word got around that I added good value, and I found myself doing a lot of commercial loans.

What advantages does commercial broking have over residential broking?

I wouldn’t say it has any. I just know it well and that helps me add value as a broker.

What advice would you give to brokers who are looking to move into the commercial space?

Make sure you understand; don’t pretend you do, and make sure you can actually add value. Too many brokers just pass on the client’s number to a business banker or have the business banker process the whole application. Our job is not just to fill out the form and send it.

How has the commercial market fared over the past year?

Great – lots of negative sentiment, but there was enough business and it’s getting better.

What are your thoughts on what the future holds for the commercial market over the next year?

I’ve been a little busier over the last couple of months so it’s looking OK.

Nedir Elhajje

OCTOBER 2013 | 29

SPECIAL REPORT / TOP COMMERCIAL BROKERS

6

TOM WALTHAM Managing director, Capital United

What do you put your success down to?

I feel that there is certainly always room for improvement, but my answer to this question is basically having a common-sense approach, with a simple focus on the following two areas. Firstly, service: always look to provide a value-added and professional service for clients. Secondly, communication and maintaining relationships: maintaining constant and consistent contact with staff, existing client base, referral partners and banking contacts.

Which area of commercial lending do you focus on and why?

I tend to target SME-sized transactions. However, I do not have a specific focus in terms of transaction type – I therefore class myself as a commercial finance generalist. I feel that this gives me the freedom and flexibility to target a range of clients.

While certain areas of commercial lending require a specialised understanding/knowledge, I feel that as long as the key aspects and drivers of a commercial transaction (eg need, serviceability, security, risks and mitigates, exit, etc.) are understood up front and conveyed to the lender appropriately (and knowing what is available and achievable with lenders), that a generalist approach is best for my business model and referral base.

What prompted you to move into commercial broking?

Having spent a number of years working as an accountant, and then as a commercial banker, I saw a need in the commercial lending space for experienced commercial finance intermediaries to assist clients with their funding needs.

I started Capital United in April 2007. At this time, it was evident that many lenders were seeing the importance of the commercial third party space as a rapidly growing and important source for new-to-bank transactions.

While the third party commercial space is still less mature than the third party residential space, it continues to grow in size, client demand, and bank support. I strongly feel that commercial broking is

30 | OCTOBER 2013

Total value of commercial settlements 2012/13: $46,980,000 Number of commercial loans settled 2012/13: 31 Number of support staff: 2 Years as a commercial broker: 6 not only an important source of newto-bank business for lenders, but that it is, and will continue to be, a valuable service offering to clients in any economic and banking environment.

What advantages does commercial broking have over residential broking?

The main advantages that I see with commercial broking over residential broking is the ability as an intermediary to provide an allencompassing value-added service to clients, in a lending environment Tom Waltham where lender policies for certain transaction types are varied.

Generally speaking, there are more variables/complexities associated with commercial lending transactions (ie gearing, conditions, covenants, etc.), and therefore I feel that there is a good opportunity to provide a value-added (specialised) service to clients in the commercial broking space, whether that be through a straight tender, consulting, or working with incumbent banks on behalf of clients.

In addition, when you are dealing with SMEs’ funding needs you are generally dealing with sophisticated clients who understand and see the value of professional third party brokers, which leads to a greater ability to cross-sell services to them.

What advice would you give to brokers who are looking to move into the commercial space?

Firstly, understand and learn: how to interpret financial information, ie what the key drivers of a certain business and/or transaction are; what the risks of a certain transaction are; and how to present this information in a concise and informative manner to commercial BDMs and/or bankers.

Secondly, BDM contact: constantly talk to lender BDMs and learn what the key lending parameters are for certain transaction types.

Thirdly, communicate: proactively communicate to referrers and clients.

5

GREG BLUMENTHAL Director, Brampton Finance

What do you put your success down to?

I am a qualified chartered accountant and as such I understand the complexities of both commercial business and lending requirements. Understanding the client’s business helps me gain their trust and strengthens their confidence in me, and it has also resulted in a number of accounting firms putting their trust in me and referring me their platinum clients. I look after the finances of several very high net worth families and their business interests.

Which area of commercial lending do you focus on and why?

Our commercial lending is quite broad. We try to cater to all our clients’ financing needs, providing them with a one-stop shop and almost a quasi-private banking service.

Over the year we have successfully financed several residential and commercial development deals and hope this continues.

What prompted you to move into commercial broking?

Total value of commercial settlements 2012/13: $47,197,590 Number of commercial loans settled 2012/13: 31 Number of support staff: 2 Years as a commercial broker: 9 You also need to have strong contacts and relationships in the banks and, most importantly, you need to have an intimate understanding of your clients’ financial affairs.

How has the commercial market fared over the past year?

The commercial market activity has picked up over the last 12 months, with a large jump in development as well as commercial investment. This is likely due to the high yields in comparison to low interest rates earned on cash or term deposits.

What are your thoughts on what the future holds for the commercial market over the next year?

Early signs for 2014 are positive for the commercial market. I expect further investment in the commercial market due to the low interest rates on offer from the banks, higher yields generally available from the commercial market, and the loosening of banks’ policies over the last 12 months for mortgages in superannuation funds.

With my background being a chartered accountant and working in financial advisory services for a bigfour accounting firm gave me a very good grounding to get into the commercial finance space. I have, however, since diversified to residential broking and life insurance broking, which is now a major part of the business.

What advantages does commercial broking have over residential broking?

The main advantage of commercial broking over residential broking is that your commissions are generally higher; however, in some cases the workload per deal can be significantly more timely and complex.

What advice would you give to brokers who are looking to move into the commercial space?

Commercial broking is very different to residential broking. Having a good understanding on how the commercial finance lending works is imperative.

Greg Blumenthal

OCTOBER 2013 | 31

SPECIAL REPORT / TOP COMMERCIAL BROKERS

4

DANIEL ZADNIK Director, Hawthorn Finance

What do you put your success down to?

I think there are a number of contributing factors.

Building relationships with clients and referrers is paramount. Listening to client needs and objectives and delivering successful outcomes in a timely manner is vital, and communication is critical in the process.

We have strong relationships with accounting firms and other professional organisations who see the work we do as ‘value adding’ for their clients. Lastly, we have a strong business plan that allows for the cyclical nature of the property market.

Which area of commercial lending do you focus on and why?

We don’t have a specific focus. We assist a broad range of clients with diverse commercial lending needs.

Total value of commercial settlements 2012/13: $74,600,000 Number of commercial loans settled 2012/13: 25 Number of support staff: 1 Years as a commercial broker: 5 These include owner-occupied commercial property, stand-alone commercial property investments, apartment developments and working-capital facilities for trading companies. We have also assisted clients purchasing commercial property within their selfmanaged super funds. Given our broad commercial experience, we haven’t felt the need to specialise in this segment of the market.

What prompted you to move into commercial broking?

For the past five years we have been an active participant in the commercial lending space, and it is viewed as a core part of the overall business.

What advantages does commercial broking have over residential broking?

There are less commercial brokers in the market compared to the residential sector, and hence we rarely compete with other brokers in the market. Generally the average loan size is greater than that in the residential segment and hence it allows you to build your trailing income quicker. It allows you to diversify your income streams by assisting clients across a spectrum of solutions (residential, commercial and equipment finance).

What advice would you give to brokers who are looking to move into the commercial space?

Have a mentor who is experienced in the commercial lending market and who can guide you through your first few deals. Networking with commercial bankers to build relationships is also quite important.

How has the commercial market fared over the past year?

The market has been solid, but certainly not boom times.

Banks have been selective in the development segment.

What are your thoughts on what the future holds for the commercial market over the next year?

Daniel Zadnik

32 | OCTOBER 2013

As rates continue to fall we expect an uptick in market activity. Growth within the self-managed super fund segment is expected to continue as its popularity grows.

3

FAY BAKER Operations manager, Sky Financial Services

Total value of commercial settlements 2012/13: $80,000,000 Number of commercial loans settled 2012/13: 11 Number of support staff: 1 Years as a commercial broker: 10

What do you put your success down to?

Continuous and thorough work on my clients’ complete finance requirements; providing professional investors, developers and businesses with appropriate loan structure to achieve their objectives.

Which area of commercial lending do you focus on and why?

I’m highly experienced when it comes to arranging funding for commercial, industrial, retail and residential or commercial developments; restructuring existing debt; and consolidating borrowings.

What prompted you to move into commercial broking?

I have been doing commercial lending for the past 10 years. It is quite a challenging area to be involved in.

What advantages does commercial broking have over residential broking?

The complexity and range of commercial/business loans available today can make it difficult for clients to adequately cover the many possibilities available. Providing practical advice on the wide range of options and lenders that can be best for clients is a lot more rewarding.

What advice would you give to brokers who are looking to move into the commercial space?

If you don’t have any educational background related to commercial lending, it would be advisable to partner with an experienced commercial specialist.

Invest into a commercial lending course. It pays to have knowledge on what you are dealing with so that you will become successful.

How has the commercial market fared over the past year?

Australia has had a thriving and despondency economy over the past year. While our economy still grew and did not technically fall into recession, consumers and businesses were gloomy. And it was much the same with the commercial market. Some areas fared well through the year, but many didn’t.

Fay Baker

“Australia has had a thriving and despondency economy over the past year ... And it was much the same with the commercial market. Some areas fared well through the year, but many didn’t”

What are your thoughts on what the future holds for the commercial market over the next year?

While in the midst of a tightly fought general election, most participants retain confidence that Australia will only grow as a market. It is hard to determine the demand for the commercial market, but definitely there are opportunities out there to be had.

OCTOBER 2013 | 33

SPECIAL REPORT / TOP COMMERCIAL BROKERS

2

DANIEL GREEN Director, Green Finance Group

Total value of commercial settlements 2012/13: $104,374,707 Number of commercial loans settled 2012/13: 118 Number of support staff: 0 Years as a commercial broker: 3 traditional family-owned local to high-end wine bars and all-inclusive entertainment venues. My clients are many and varied, from small-business owners to some of Australia’s largest hoteliers, developers and investment groups. There are some obvious fringe benefits when most of your business is done at the bar, but in all seriousness the clientele are mostly incredibly hardworking and I enjoy working with them to minimise the challenges the volatile nature of the hospitality industry can pose. I also have large client bases in the areas of motel, accommodation, management rights and childcare. I’ve attracted a great team of finance professionals at GFG and, whilst we can all cover commercial, equipment and residential finance requirements, each member of the team has one or more core industry specialties and we each bring complementary knowledge and experience to the table.

What prompted you to move into commercial broking?

Daniel Green

What do you put your success down to?

I think it is a combination of things. I gained my experience working in the engine room of some of the country’s biggest banks, which helped to shape a solid work ethic and a good grasp on policy formation.

I follow a simple philosophy of treating my clients the way I like to be treated, which means doing what I say I will do when I say I’ll do it. I also surround myself with a network of talented professionals who complement my service offering and help to attract great clients, from the team of finance specialists at GFG to our lending colleagues and business associates in the form of accountants, solicitors, valuers, business brokers, financial planners and real estate agents. My business is predominantly word-of-mouth referrals so I know the formula is working!

Which area of commercial lending do you focus on and why?

My experience spans most industries, but I would have to say pubs and hotels are my specialty, from the

34 | OCTOBER 2013

My career in banking and finance began in the early nineties with Commonwealth Bank under the graduate program. I was exposed to all aspects of commercial and retail banking, but I preferred the fast-paced nature of the commercial business. I’m not afraid of a challenge, and I’m good at developing relationships. It doesn’t matter what size the deal is; I still get that feeling of achievement when it’s set. There’s a definite satisfaction in knowing you are helping to build something bigger.

What advice would you give to brokers who are looking to move into the commercial space?

Don’t underestimate the transition, particularly if you are moving from a residential background. Pick a specialty and develop your knowledge of that space until you know it inside out. Once you’ve mastered one area you can always diversify, but it’s important to have a solid base to build from. Seek out a mentor, someone who’s done it successfully before you; you’ll be surprised by how supportive your business colleagues can be. And work hard to build relationships with other professionals working in the same space. Build your professional network based on being in a position to offer your clients a better service, and not with an expectation of referrals.

When you do it the right way, referrals will follow.

OCTOBER 2013 | 35

1

RANJIT THAMBYRAJAH

Total value of commercial settlements 2012/13: $217,386,600

Director, Acuity Funding

Number of commercial loans settled 2012/13: 17

What do you put your success down to?

I’m skilled in quickly identifying the problems faced by clients and then structuring solutions to overcome the obstacles they face. I do this by offering access to lending products from a number of different funders, and often splitting the client’s financial requirements between various specialist lenders and products.

I also keep myself well informed of new financial instruments that are made available to the market, ensuring I understand them and consider how to best utilise them for the benefit of my clients. With 30 years of personal industry experience, I’m good at assessing many industries, identifying problems and creating opportunities and solutions.

There also appears to be a real shortage of expertise in the third party arena when it comes to commercial brokering, especially in the area of specialised securities, such as the types of industries that I’ve had personal experience in (nursing homes and other types of aged-care businesses, developments, export/import, franchising, agribusiness, real estate sales and syndications).

Which area of commercial lending do you focus on and why?

The enquiries that we receive generally determine the type of services Acuity Funding gets involved in. This past year we have focused on construction and development, mezzanine funding, leasing and hire purchase, commercial finance, overseas (cross border) lending, debtor finance and commercial aggregation.

What prompted you to move into commercial broking?

I’ve always been a commercial broker. I have an analytical mind for business that is not constrained by ‘how things have always been done’. I very much enjoy the challenge of resolving complex business issues, and commercial broking provides me with the opportunity to exercise my skills and interests in a fruitful way.

What advantages does commercial broking have over residential broking?

There is no real advantage that commercial broking has over residential broking. The only possible benefit

36 | OCTOBER 2013

Number of support staff: 4 Years as a commercial broker: 29+ is that the normal transaction size is larger than a residential transaction and thereby the remuneration is also larger. Having said that, the lead time for commercial transactions is often much longer, and the expertise required is often much higher in commercial broking.

What advice would you give to brokers who are looking to move into the commercial space?

It is very important for residential brokers to offer a commercial offering to ensure that they do not lose their clients to other brokers. Residential brokers need to connect themselves with an experienced and professional commercial broker to ensure that their client does not need to look for another broker to service their commercial needs. Acuity Funding assists many residential brokers to do this. Acuity Funding only focuses on commercial enquiries. It is impossible to be ‘all things to all men’ in the complex business environment that we live in.

How has the commercial market fared over the past year?

The commercial market has been very tough. Money has been tight, and the major banks have been very fussy about the business they take on. This has meant that Acuity Funding has had to go the ‘extra mile’ in securing finance for its clients. I’ve had to be very skilled in pointing out why a client is a worthwhile opportunity for a lender to accept over another.

What are your thoughts on what the future holds for the commercial market over the next year?

Being a broker, I’m always hopeful that things will get easier in the third party arena. Having said that, I do believe that the general business community is looking forward to a more stable business environment.

It also appears that the ‘doomsday’ projections for the world economy seem to have been avoided by good management, enabling the world to look forward to better times. Here in Australia, we are still very well positioned to take advantage of a recovery on an international level. We are also well placed to keep improving, even if the world economy continues to be sluggish.

MPA’s Top Commercial Broker for 2013, Ranjit Thambyrajah, left, is presented with his award by Peter Vala, head of sales and distribution, Thinktank

OCTOBER 2013 | 37

COVER STAR / BRANSON ON BUSINESS

VIRGIN TERRITORY

Like him or loathe him, Sir Richard Branson is one of the most successful entrepreneurs in the world. In this exclusive interview, MPA probed the Virgin mastermind about the secrets to his success MPA: Many of our readers run small- to medium-sized businesses.

What’s the difference between a business that chugs along at a happy medium and one that develops into a world-leading, global empire? How do you go about building an empire rather than just a business?

MPA: Both Virgin and Sir Richard Branson are names that are known the world over. How important is a strategic approach to branding – personal and/or corporate? Can they be separated?

What are the must-do’s when building a brand?

Sir Richard Branson: Big or small, I believe that all successful and innovative companies need to have an excellent product or service, they need strong management to execute the plan and a good brand to give it the edge over competitors.

Often entrepreneurs can create a good product and a brand but lack the management to help expand and create a truly great company – people are the core differentiator between a business that just chugs along and one that grows into an empire.

An entrepreneur needs to build up a very strong and capable management team and delegate out the responsibility to run the existing companies to them, so that he or she can focus on new ideas and finding the next business to start up.

Just remember that it is impossible to run a business without taking risks. Virgin would not be the company it is today if we had not taken risks. I couldn’t tell you which was the riskiest – there has been quite a few!

RB: Brands ultimately belong to the consumer.

While a business can influence its brand by what it does and how it behaves, it is what the customer thinks at the end of the day that is the only important thing. With this in mind, I think that it is important to try and identify early on what attitude you would like your brand to convey, and then go about building it!

Brands need to be constantly nurtured, to be kept fresh and be seen. When I was thinking about setting up my own airline, the late Freddie Laker said to me: “You’ll never have the advertising power to outsell British Airways. You are going to have to get out there and use yourself. Make a fool of yourself. Otherwise you won’t survive”. I’ve been following his advice ever since and used myself to get the Virgin brand in the headlines and become more visible.

38 | OCTOBER 2013

MPAMAGAZINE.COM.AU

“People are the core differentiator between a business that just chugs along and one that grows into an empire” OCTOBER 2013 | 39

COVER STAR / BRANSON ON BUSINESS

BRANSON ON… RELAXING MPA: It’s all too easy for an entrepreneur to get stuck dealing with the daily workings of a business. How important is it for an entrepreneur to get out of the office and do other things? What helps you refresh yourself mentally and physically?

RB: I do try to keep fit – anytime I’m near a Virgin Active club I make sure I get in there and work out. I love tennis and kite-surfing and pretty much do some sort of exercise every day, without making it too rigid, as that just doesn’t work for me. I enjoy being outside and being active – keeping fit as a result is almost a by-product of doing something I enjoy! I recently completed the Pick n Pay Cape Argus Cycle Tour, a wonderful 109km ride with 36,000 cyclists, and an extraordinary atmosphere with breathtaking views.

I have always believed that I needed to find good people to run my businesses and to delegate day-to-day management to others. I did this from a very early age and, importantly, that has allowed me to go and set up new ventures, sometimes in a new sector or country.

MPA: Our readers’ businesses deal with intangible services in the financial sector. What are your tips for effectively marketing and selling intangibles?

What have you learnt from ventures such as the Virgin Money companies?

RB: Even today, the Virgin brand is not a product like Coca-Cola or McDonald’s; it’s an attitude and a way of life to many. At Virgin Money, we’re building a better kind of bank. A bank that genuinely cares about the customer and provides a better experience and better-value financial products in a straightforward, transparent way. I think that it is important to build up a strong brand when selling an intangible service as it makes your service distinct and different from anyone else’s.

MPA: You’re famous for your ‘Screw it, let’s do it’ approach, which has led to missteps as well as successes.

What is your biggest business failure, and why?

How do you pick yourself up from mistakes – both personally and financially?

RB: Whenever I experience any kind of setbacks, I always pick myself up and try again. I prepare myself to have another stab at things with the knowledge I have gained from the previous failure. My parents always taught me never to look back in regret but to move on to the next thing.

The amount of time people waste on failures rather than putting that energy into another project always amazes me. I have fun heading the Virgin group of businesses, so a setback is never a bad experience, just a learning curve.

MPA: Part of the skill of a successful entrepreneur is identifying tomorrow’s growth sectors and opportunities – Virgin Galactic being one of the most high-profile examples of this. How do you discover tomorrow’s opportunities today?

RB: There are many different reasons for entering new businesses. It can be as simple as a business sector really interests me or one of our directors at Virgin, and we see areas in that sector where our brand can make a real difference to the consumer.

Sometimes it is as simple as the fact that an existing service has frustrated us and we believe we could do it better.

Having the will to say ‘screw it, let’s do it’ and make things happen is what sets entrepreneurs apart. It takes bravery to start a business, but 40 | OCTOBER 2013

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people with enterprising spirit who seize chances when they come along will be the ones who drive the economy and make a difference in the future.

MPA: Another aspect of business that every entrepreneur understands is getting the right people around you.

How do you find the best talent for your businesses – and how do you keep them interested and engaged?

RB: We don’t really have a general recruiting process at Virgin – it depends on the type of business and the position we are looking to fill.

However, as a rule we tend to pick out employees who are inquisitive about the bigger picture, and have a ‘can do’ attitude, are positive and enthusiastic and, most importantly, have a strong sense of fun! I have found that choosing enthusiastic, talented and positive people has helped to shape a positive character for our businesses.

MPA: Innovation is clearly something that is central to the Virgin ethos. How do you unlock this, both personally and in your business teams? Can you create a culture of innovation and, if so, how?

RB: I believe our culture of innovation is a result of our ability to adapt to changes quickly. We run our companies small; there is very little red tape and certainly no bureaucracy – we make decisions quickly and implement them, before our competitors in the market have held their fifth meeting on the same issue.

Additionally, Virgin has many, many entrepreneurs within the organisation. In business, the picture is constantly moving and changing so I try to employ people who enjoy thinking outside the box and are constantly creative and inspiring.

Our people don’t just think about the numbers but think about how a deal will enhance the whole brand.

MPA: You’re a globally recognised philanthropist and supporter of charities. How important is it to devote time and capital to not-for-profit work as a businessperson? Does it matter what size your business is? Is it more important to donate time or capital?

RB: I believe that today’s businesses – regardless of their size – must be prepared to do good in societies around the globe. I am optimistic that we

BRANSON ON… TECHNOLOGY MPA: From big data to social media, the digital revolution is disrupting industries across the world, with business models being forced to change, whether they want to or not. As an entrepreneur with a history of disrupting established industries, does the potential of digital excite you? What’s your advice on how to make the most of emerging technologies?

RB: The mobile revolution has allowed entrepreneurs to better talk to their customers, suppliers and staff in real time to determine exactly how each one is responding to particular situations, and determine exactly what they want and need. An entrepreneur who takes full advantage of this is well on the way to making himself a success, because he knows how to approach his consumers and how to deliver his offer in just the right way. I know it’s a cliché, but knowledge is power.

Virgin is a major advocate of social media and the power it can hold for companies. My advice to the businesses of the future would be to improve their social media presence and use it as a way of knowing their customers more intimately. It can act as a wonderful warning system for businesses as well as a cost-effective way to get your message out.

“The amount of time people waste on failures rather than putting that energy into another project always amazes me” can make the world a far better, safer and more equitable place, but business and enterprise must sit at the heart of this process. We need government, business and the social sector to work together for the benefit of everyone.

It should no longer be just about typical ‘corporate social responsibility’ where the ‘responsibility’ bit is usually the realm of a small team buried in a basement office – now it should be about every single person in a business taking responsibility to make a difference in everything they do, at work and in their personal lives.

Virgin Unite, the non-profit arm of the Virgin Group, call this approach ‘Capitalism 24902’ because it’s focused on getting business leaders all over the world — all 24,902 miles of it — to look at how we can do what is right for people and the planet. Virgin Unite also helped incubate a recently launched not-for-profit organisation called ‘The B Team’ which is framing a new approach to business where people and planet are priorities alongside profit.

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AUSTRALIAN MORTGAGE AWARDS

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Finalists n Friday 18 October, the best and brightest of the Australian mortgage industry will descend on The Star in Sydney’s Darling Harbour for the 2013 Australian Mortgage Awards (AMA).

Presented by Australia’s number one entertainment personality, Richard Wilkins, the AMA event will bring together the industry's finest, recognising brokers and brokerages for their outstanding achievements. Winning an AMA continues to be the most prestigious and recognised accolade for a mortgage and finance professional in Australia – at the ‘Oscars of the mortgage industry’.

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Once again, AMA drew in a record number of nominations this year, and MPA is proud to announce the individuals and businesses who have scored the seal of approval among their peers and made it into this year’s list of finalists.

MPA and its publisher, Key Media, would like to say a big thank you to all our sponsors, as well as to all those individuals who took the time to cast their votes this year.

We look forward to seeing you all at the Sydney Star on 18 October.

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AUSTRALIAN MORTGAGE AWARDS 2013 / FINALISTS Official event partner

A WORD FROM OUR PARTNER Westpac is proud to be returning as the official event partner of the 2013 Australian Mortgage Awards – the awards event that recognises and celebrates the outstanding achievements of the nation’s leading brokers and brokerages every year.

Since its inception, Westpac has seen the Australian Mortgage Awards grow in line with the professional nature of the market and evolve into the prestigious event it is today.

In less than four years, Westpac will celebrate its 200th anniversary and enter our third century as the first Australian bank and the first Australian company to reach this milestone. Like many of you, we understand what it takes to be a leader in the industry and we are uniquely placed to support brokers in building their businesses.

We continue to build deep, strong partnerships with our brokers, aggregators and all parts of the bank, to ensure we continually offer the best solution, quality service and great customer experience that will help your clients achieve their financial goals sooner.

Being one of the first banks to support the broker industry, we acknowledge the ongoing recognition of professional brokers, for their excellence is essential to the industry’s continued evolution, and I congratulate all the awards finalists nominated in the 2013 Australian Mortgage Awards.

Tony MacRae, general manager, Westpac mortgage broker distribution

MOST EFFECTIVE INTERNET PRESENCE The internet is becoming an increasingly important medium for communication and day-to-day business transactions. This category recognises those within the industry who have harnessed this medium to provide brokers with practical, effective and easily accessible facilities to help them with their business.

• • • • • • • •

1300 Homeloan Commonwealth Bank of Australia Connective eChoice Home Loans Macquarie Bank NAB Broker Westpac St.George

BEST INDUSTRY SERVICE Industry services play an extremely important role within the industry. This award recognises the service provider that adds the most value to their customers’ businesses.

• Andrew Hetherington, Intellitrain • • • • • •

Brett Spencer, Stargate Group Dean Forrester, RP Data Jason Hayden, Finware Australia Wayne McCartney, Loanworks Technologies Chris Barry, First Mortgage Service Jega Rajan, Infinitive

BEST INDUSTRY ADVERTISING CAMPAIGN This award will recognise the best below-the-line (B2B) advertising campaign conducted by any organisation within the industry (marketing to brokers).

• Erica Tsang, Macquarie Bank • Jane Grant, NAB • Jess de Araugo, Connective • John Kolenda, 1300 Homeloan • Leora Lazarus, FAST • Liz Rochaix, Pepper Home Loans • Patrick Waite, Commonwealth Bank of Australia • Rachelle Beneke, ING DIRECT

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Sponsored by Westpac

BEST COMMUNITY ENGAGEMENT This award recognises the business or broker that has demonstrated service or contribution over a sustained period of time and has gone beyond normal expectations or had a significant impact on their local community.

• • • • • •

Bill Tsigaras, Fundzcorp Jeremy Fisher, 1st Street Home Loans Jess De Araugo, Connective Nicole Cannon, Pink Finance Paul Smith, Loan Market Rachelle Beneke, ING DIRECT

Today, Westpac strives to offer its mortgage broker partners first-class service and a broad range of award-winning home loan products, with the focus firmly on the future to delight them by placing brokers at the centre of everything they do. Westpac continues to strengthen its relationship with brokers and aggregators, through its branch, operations and broker teams working together to provide the best BDMs, consistency of service, transparent communication and opportunities to meet local bank managers to build strong local business partnerships.

Sponsored by Deposit Power

BEST CUSTOMER SERVICE FROM AN INDIVIDUAL OFFICE Customer service is an incredibly important measure of any brokerage's long-term sustainability and success. For this award category the AMA team will turn to the country’s biggest mortgage consumer magazine, Your Mortgage, and website, www.yourmortage.com.au, to poll our industry's clients and find out who is providing industrystandard service levels.

• • • • • •

Denise Chan, Loan Market, Sydney Ismail Ozsoy, Touch of Finance Jeremy Fisher, 1st Street Home Loans Justin Doobov, Intelligent Finance Moshe Moses, Niche Financial Group Peita Davies, Choice Home Loans, Blue Mountains • Rebekah Gould, Smartline, Gold Coast • Sandra Mallia, Loan Market, Port Melbourne • Simon Orbell, Smartmove Professional Mortgage Advisors

Deposit Power is Australia’s leading provider of deposit guarantees, having issued the first deposit guarantee in Australia in 1989.

Since then, more than 750,000 Australians have used Deposit Power to purchase their home or investment property.

Sponsored by Bankwest

BEST AGGREGATOR BDM This award recognises the best aggregator BDMs who are most respected by the broking community.

To assess this category the AMA team will turn to the broking channel and aggregators to tell us who they believe should be finalists and why. The winner of this category will become a finalist for Australian BDM of the Year.

• • • • • • • • •

Anthony Boulos, NMB Fiona Brown, Connective George Srbinovski, AFG Glenn Williams, Choice Aggregation Janelle Mancer, PLAN Australia Jay Ellis, PLAN Australia Mark Lewis, FAST Melissah Douglas, Loan Market Tony Newcombe, Vow

Bankwest provides full banking services to more than 1.2 million customers. Bankwest is a division of the Commonwealth Bank of Australia. The bank promotes a range of products, with 71% of our mortgage balances being introduced by brokers. Our vision is to deliver what matters to our customers, with an absolute focus on customer satisfaction. Bankwest believes in delivering innovative and competitive products that offer our broker customers a greater choice in the Australian market.

BEST NON-BANK BDM This award recognises the non-bank BDMs who are most respected by the broking community. To assess this category, we ask the broking community to tell us who they believe should be finalists and why.

The winner will become a finalist for Australian BDM of the Year.

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• • • • • • •

Anthony Wickremasinghe, Liberty Financial Daniel Carde, RESIMAC Darren Stratford, Homeloans Ltd Lynn Sawyer, Barnes Home Loans Melanie Davis, AFM Neil Meurant, Pepper Home Loans Vanessa Bakatselos, Pepper Home Loans

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AUSTRALIAN MORTGAGE AWARDS 2013 / FINALISTS Official event partner

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BEST BANK BDM BDMs are an essential ingredient in the lender/broker relationship, and this award recognises the BDMs who are most respected by the broking community. To assess this category the AMA team will turn to the broking community to tell us who they believe should be finalists and why. The winner of this category will become a finalist for Australian BDM of the Year.

• • • • • • • • • • • •

Andrew Parry, Macquarie Bank Chris White, NAB Broker Craig Dunning, Westpac Damien Muir, Commonwealth Bank John Loukadelis, Macquarie Bank Mark Schultz, Commonwealth Bank Petta Mazz, ANZ Rob Brownlow, Suncorp Ross Cacozza, Citibank Sharon Corbett, Westpac Tim Howard, Bankwest Vanessa Boudib, ING DIRECT

• • • • • • • • •

Daniel Esposito, Loan Market, Manningham Daniel Green, Green Finance Group Fay Baker, Sky Financial Greg Wells, Wells Partners/Mortgage Link Group Josh Bartlett, Loan Market Mark Davis, Australian Lending & Investment Centre Moshe Moses, Niche Financial Group Ranjit Thambyrajah, Acuity Funding Simon Orbell, Smartmove Professional Mortgage Advisors

BROKER OF THE YEAR – FINANCE This award has been designed to recognise the standout mortgage brokers who specialise in commercial real estate, investment finance, SME/debtor finance, asset and leasing finance.

Nominations will be accepted from brokers themselves, lenders and aggregators. The winner of this category will become a finalist for Australian Broker of the Year.

Sponsored by Pepper Home Loans

BROKER OF THE YEAR – NON-CONFORMING This award recognises standout performers in the non-conforming category. Brokers can nominate themselves for this category; however, special attention will be paid to nominations made by non-conforming lenders, who are best placed to judge a broker’s performance objectively. The winner will become a finalist for Australian Broker of the Year.

• • • • •

Giulio Avian, FundsNational Graham Reibelt, Oasis Mortgage Group John Paraskevis, Faraday West Melanie Burns, Red Rock Mortgages Stuart Styles, Arthurmac

Pepper is a pioneer in the Australian specialist mortgage sector and is one of Australia's leading non-bank financial institutions. Pepper focuses primarily on providing home loans to customers who do not meet the acceptance criteria of banks and other lenders, in particular the self-employed, small business owners and borrowers with irregular income, an unsubstantiated savings history or a prior record of minor credit impairment. Pepper offers a genuine financing alternative to prime-quality borrowers who are typically denied access to residential mortgage finance due to restrictive lending criteria.

Sponsored by Commonwealth Bank

QUALITY YOUNG GUN OF THE YEAR – FRANCHISE This award will be presented to the rookie who exhibited excellence within the franchise system in their first two years of operation as a broker in the mortgage industry. The winner of this category will become a finalist for Australian Quality Young Gun of the Year.

• Brendan Hawe, eChoice Home Loans • Bruce Podger, Aussie • Callum Kerr, Aussie • Fab Mastro, Mortgage Choice • Karli Martin, Mortgage Choice • Leteisha Pileggi, Mortgage Choice • Melinda Whelan, Smartline With a vision to be Australia's finest financial services organisation through excelling in customer service, Commonwealth Bank is market leader in the third party broker market and the Australian home loan market. Commonwealth Bank offers strength in uncertain times and is determined to be different through its partnership approach to doing quality and mutually profitable business with mortgage brokers.

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AUSTRALIAN MORTGAGE AWARDS 2013 / FINALISTS Official event partner

Sponsored by Commonwealth Bank

QUALITY YOUNG GUN OF THE YEAR – INDEPENDENT This award will be presented to the rookie within an independent brokerage who exhibited excellence in their first two years of operation as a broker in the mortgage industry. The winner of this category will become a finalist for Australian Quality Young Gun of the Year.

• Clifford Ferrer, 1st Street Home Loans • George Agoratsios, Build Wealth Financial • Josh Gilbert, Loan Market • Kam Ng, Right Solutions • Marissa Schulz, Rise High Financial Solutions • Melinda Patterson, 8888 Loan Group • Seuj Barua, ALIC • Theo Chambers, Shore Financial

With a vision to be Australia's finest financial services organisation through excelling in customer service, Commonwealth Bank is market leader in the third party broker market and the Australian home loan market. Commonwealth Bank offers strength in uncertain times and is determined to be different through its partnership approach to doing quality and mutually profitable business with mortgage brokers.

“It’s great to show your referrers that i am good at what i do” – JOSH BARTLETT, LOAN MARKET, CHELTENHAM

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Sponsored by Suncorp

BROKER OF THE YEAR – FRANCHISE This award recognises extraordinary performance in 2012/13 within the franchise system. Loan volume, quality of submissions, conversion rates and overall customer service will be key considerations in the judging process. The winner of this category will become a finalist for Australian Broker of the Year.

At Suncorp, helping you do business is our business. As Australia’s fifth-largest bank, we deliver highly competitive lending solutions, quick and consistent service turnaround, and expert support. We are committed to making it simple and rewarding to do business with us and delivering on our promise to be the number one alternative to the majors.

• Andrew Heath, Mortgage Choice, Hawkesbury • Ben Eick, LJ Hooker Home Loans • Cathy Anderson, Smartline • David Wegener, Club Financial Services, Norwood • Griffin Czipri, eChoice Home Loans • Josh Egan, Club Financial Services • Leeanne Scott, Mortgage Choice • Peita Davies, Choice Home Loans, Blue Mountains

Sponsored by Suncorp

BROKER OF THE YEAR – INDEPENDENT This award recognises extraordinary performance in 2012/13 exhibited by independent brokers.

Loan volume, quality of submissions, conversion rates and overall customer service will be key considerations in the judging process. The winner of this category will become a finalist for Australian Broker of the Year.

At Suncorp, helping you do business is our business. As Australia’s fifth-largest bank, we deliver highly competitive lending solutions, quick and consistent service turnaround, and expert support. We are committed to making it simple and rewarding to do business with us and delivering on our promise to be the number one alternative to the majors.

• Colin Lamb, Mortgage Solutions Australia • Daniel Esposito, Loan Market, Manningham • Justin Doobov, Intelligent Finance • Katrina Rowlands, Mortgage Success • Mardee Thomas, 1st Street Home Loans • Mark Davis, Australian Lending & Investment Centre • Rael Bricker, House + Home Loans • Simon Orbell, Smartmove Professional Mortgage Advisors • Warren Dworcan, Rate Detective Finance

Sponsored by Choice Home Loans

NEW BROKERAGE OF THE YEAR The New Brokerage of the Year category is for an individual office or branch that is less than two years old. The winner of this category will become a finalist for Australian Brokerage of the Year.

• • • •

Alex Nochar, Shore Financial Brad Quilty, Tungsten Home Loans Jo Kous, Mortgage Search Marissa Schultz, Rise High Financial Solutions • Ren Wong, N1 Finance • JB Home Loans

Choice Home Loans’ vision is to be Australia’s most trusted mortgage business. We bring this vision to life through continually supporting our network of members.

Choice Home Loans believes in the power of advice. And the key to providing the best possible advice is listening.

Combining the strength of our nationally recognised brand and supportive business model, our members are empowered to make decisions, take control of their business and achieve their full potential.

Sponsored by Macquarie Bank

BROKERAGE OF THE YEAR – DIVERSIFICATION • 8888 Loan Group • FME Group • Investor Success • Lending4U • Niche Financial Group Macquarie Bank understands the importance of the role • The Selector Group you play in helping your clients to select the right mortgage. That's why we support all accredited mortgage • Macquarie Commercial Finance brokers with a premium service standard. Our business is • First Choice Mortgage Brokers built around your business. Our sales team has exceptional industry knowledge and experience and will support you during the application and settlement process, but our service model doesn't end there.

This category will consider the brokerage that has implemented the most effective diversification business model. The winner of this category will become a finalist in Australian Brokerage of the Year.

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AUSTRALIAN MORTGAGE AWARDS 2013 / FINALISTS Official event partner

Sponsored by Choice Home Loans

FRANCHISE BROKERAGE OF THE YEAR This award recognises excellence displayed by a brokerage within the franchise system. Loan volume, quality of submissions, conversion rates and overall customer service will be key considerations in the judging process. The winner of this category will become a finalist in Australian Brokerage of the Year.

Choice Home Loans’ vision is to be Australia’s most trusted mortgage business. We bring this vision to life through continually supporting our network of members. Choice Home Loans believes in the power of advice. And the key to providing the best possible advice is listening. Combining the strength of our nationally recognised brand and supportive business model, our members are empowered to make decisions, take control of their business and achieve their full potential.

• Anthony Smith, Mortgage Choice, Cheltenham • Dave Urquart, The Mortgage Gallery, Joondalup • David Wegener, Club Financial Services, Norwood • Leith Wickstein, Choice Home Loans, Berwick • Marco Meloni, Choice Home Loans, Leederville • Richard Crommelin, Mortgage Choice, Adelaide CBD • Rob Egan, Club Financial Services, Gippsland • Scott Cameron, LJ Hooker Home Loans, ACT & Southern NSW

“[The AMAs] are the most prestigious awards. AMAs are where it is, and we love to be a part of it” – MARK DAVIS, THE AUSTRALIAN LENDING & INVESTMENT CENTRE

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Sponsored by ANZ

BROKERAGE OF THE YEAR (≤5 STAFF) – INDEPENDENT This award recognises independent brokerage operations with a total number of staff (or full-time equivalents) less than or equal to five. The winner of this category will become a finalist for Australian Brokerage of the Year.

At ANZ, we understand the meaning of commitment.

We’ve been backing brokers consistently since the early days, no matter the weather. We see brokers as our valued business partners and we work with you to provide a positive experience, from BDM to branch, every time. As we enter our 16th year of supporting the broker industry, we look forward to continuing to deliver great service to both customers and brokers. You want back-up from day one. We’re with you.

• Alex Shumsky, Loan Market, Oakleigh • Cameron Morgan, Empower Wealth Mortgage Advisory • Daniel Esposito, Loan Market, Manningham • Jeremy Fisher, 1st Street Home Loans • Justin Doobov, Intelligent Finance • Leonie Jackson, Great Aussie Dream • Moshe Moses, Niche Financial Group • Paul Lambess, CVG Finance

Sponsored by ME Bank

BROKERAGE OF THE YEAR (>6 STAFF) – INDEPENDENT This award recognises independent brokerage operations with a total number of staff (or full-time equivalents) of six or more. The winner of this category will become a finalist for Australian Brokerage of the Year.

ME Bank is a 100% Australian-owned, APRA-regulated bank, established by industry super funds — the same people who brought you low-cost, no-commission super.

ME Bank was proudly built to provide a genuine banking alternative — a fairer way to bank.

• • • • • • • • •

Australian Lending & Investment Centre Home Loan Experts Loan Studio Mortgage Solutions Australia Niche Financial Group Oxygen Home Loans Smartmove Tiffen & Co Trilogy Funding

Sponsored by Commonwealth Bank

BROKER OF THE YEAR – PRODUCTIVITY

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This award has been designed to recognise the standout mortgage brokers who focus on productivity improvements through increased office efficiencies and quality submissions. The winner of this category will become a finalist for Australian Broker of the Year.

• • • • •

With a vision to be Australia's finest financial services organisation through excelling in customer service, Commonwealth Bank is market leader in the third party broker market and the Australian home loan market.

Commonwealth Bank offer strength in uncertain times and are determined to be different through their partnership approach to doing quality and mutually profitable business with mortgage brokers.

• • • •

Andy Drake, Iconic Home Loans Claire George, 1st Street Home Loans David Garner, Go Loans Justin Doobov, Intelligent Finance Kevin Agent, Australian Lending & Investment Centre Mark Davis, Australian Lending & Investment Centre Michael Coombe, Southshore Finance Ruan Burger, Time Home Loans Tom Leahey, Oxygen Home Loans

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AUSTRALIAN MORTGAGE AWARDS 2013 / FINALISTS Official event partner

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To be announced on the night …

WESTPAC AUSTRALIAN BROKER OF THE YEAR

COMMONWEALTH BANK AUSTRALIAN YOUNG GUN OF THE YEAR

NAB BROKER AUSTRALIAN BROKERAGE OF THE YEAR

AUSTRALIAN BDM OF THE YEAR

Australian Broker of the Year is awarded in recognition of extraordinary performance in 2012/13. This award is one of the highest possible accolades offered to an individual in the mortgage industry, and the finalists for this category come from the winners of the national awards.

The Australian Brokerage of the Year award will recognise the extraordinary performance in 2012/13 of Australia’s leading brokerage.

This award is one of the highest accolades offered to a brokerage business in the mortgage industry. The finalists for this category will come from the winners of the group awards (Broker of the Year <5 Staff – Independent, Brokerage of the Year >6 Staff, New Brokerage of the Year, Brokerage of the Year – Diversification, and Franchise Brokerage of the Year).

The winner of Australian Young Gun of the Year has obtained excellence in their first two years as a broker in the mortgage industry as a broker. Finalists for this category are the winners of the individual award categories (Quality Young Gun of the Year – Franchise, and Quality Young Gun of the Year – Independent).

The Australian Business Development Manager (BDM) of the Year award is in recognition of extraordinary performance.

Being one of the four ‘Australian’ awards offered on the evening makes this a very special category. Finalists for the Australian BDM of the Year are the winners of the BDM award categories (Best Bank BDM, Best Non-Bank BDM and Best Aggregator BDM).

Sponsored by

Sponsored by

Sponsored by

Today, Westpac strives to offer its mortgage broker partners first class service and a broad range of awardwinning home loan products, with the focus firmly on the future to delight them by placing brokers at the centre of everything they do. Westpac continues to strengthen its relationship with brokers and aggregators, through its branch, operations and broker teams working together to provide the best BDMs, consistency of service, transparent communication and opportunities to meet local bank managers to build strong local business partnerships.

With a vision to be Australia's finest financial services organisation through excelling in customer service, Commonwealth Bank is market leader in the third party broker market and the Australian home loan market.

Commonwealth Bank offers strength in uncertain times and is determined to be different through its partnership approach to doing quality and mutually profitable business with mortgage brokers.

NAB Broker is the specialist distribution business within NAB Personal Banking responsible for managing relationships with mortgage brokers and aggregator groups. NAB Broker has the ability to package a range of products and services from every part of the organisation where it makes sense for a mortgage broker and their clients, including the lending platform Homeside, NAB mortgages and consumer banking solutions, MLC personal insurance and Allianz general insurance.

GOLDEN MORGIE FOR LIFETIME ACHIEVEMENT IN THE MORTGAGE INDUSTRY Recognising lifetime achievement in the mortgage industry, the Golden Morgie is the highest honour and most coveted AMA award. The award recognises an individual who has made an outstanding contribution to the industry as a whole.

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BUSINESS STRATEGY / TIME MANAGEMENT

TIME MANAGEMENT:

ARE YOU A TIME SAVER OR A TIME SPENDER?

Do you feel like there is simply never enough time in the day to get your business firing on all cylinders? Your personal time management beliefs may well be contributing to your productivity downfall, but a change in mindset can do wonders for business as well as your stress levels, argues Nikki Heald

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Do you ever wish you had more hours in the day?

Do you find yourself stressed, anxious and a little overwhelmed when tasks are incomplete? Well, if you think it’s getting harder and harder to manage your time, you’re certainly not alone. More and more employees are complaining about the pressure on their time and that their workload appears to be increasing.

We each have 24 hours in our day, so why is it that some people breeze seamlessly through their tasks and others struggle with time?

Time management is really about managing yourself. While we can’t control the number of hours in our day, we can control the way we work. Interestingly, your personal time management beliefs may well be contributing to your productivity downfall. Are you convincing yourself that there is not enough time? Do you refrain from delegating because it’s easier to do it yourself? Are you in the habit of always saying yes to others? Do you believe that multitasking makes you more efficient?

Firstly, in order to make positive time management changes it’s important to develop the mindset that your time is valuable. In other words, recognising the importance of what you do and deciding what deserves your energy. The essence of working effectively is firstly knowing what to do, and secondly just doing it.

TRIVIAL INTRUSIONS While these may appear to be very simple steps at first glance, with so many distractions and interruptions in the workplace it’s easy to lose focus. Research has demonstrated that about 2.1 hours per day is wasted on trivial intrusions. These time wasters destroy any attempt at effective time management if they are not identified and eliminated. Some interruptions, of course, are necessary and cannot be avoided, but many are just needless annoyances.

Think about your working day and consider all of the inconsequential disturbances that may occur. Some of the biggest time wasters include checking Facebook, texting, social chit-chat, smoking breaks, IT issues, humorous emails, feeling tired, personal phone calls, questions from colleagues, and notifications. It’s easy to see just how quickly 2.1 hours can accumulate.

TOP TIP Clear your workspace.

Working in a cluttered environment clutters the mind, and unnecessary time is wasted looking for things.

Your personal time management beliefs may well be contributing to your productivity downfall Additionally, a lot of time may be spent on lowpayoff activities, rather than high-payoff activities.

Our high-payoff activities are those that bring us maximum return. Essentially, they are tasks or actions that are the most significant. High payoffs are duties that are generally aligned with our KPIs or targets, or form part of our job description.

Low-payoff activities are those activities that, in reality, don’t significantly impact on results or the bottom line. And yet it’s often these tasks that get the majority of our attention. Why? Well, firstly they often require minimal effort and can be done quickly. This provides us with instant gratification – we feel as though we’ve been ‘busy’. Additionally, because they are easier, they may be more pleasant and enjoyable to complete than high-payoff tasks.

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BUSINESS STRATEGY / TIME MANAGEMENT

TOP 10

TIME MANAGEMENT TIPS

IDENTIFY AND ELIMINATE

TOP TIP Think about when you are at your most productive, and then plan important tasks for this time.

High-payoff activities will vary from person to person, job to job. A low payoff for one individual may well be a high payoff for another. Either way, it’s vital you have a clear understanding of what your high payoffs are. That way, you can ensure that maximum time is devoted to these.

In theory and ideally, we should be aiming to work on high payoffs for around 70–80% of our working week. Unfortunately, research has demonstrated that realistically only about 40% of our working week is actually spent on them.

The trick is to identify your low payoffs and, once you’ve done so, consider ways to remove or eliminate them. Not everything has to be done by you! Create a list outlining low-payoff tasks in one column and high payoffs in the other. Doing this will provide clarity about where the majority of your time is being depleted, and allow you to recognise where your time should be invested.

Ensure you take regular breaks – allow yourself some rest time, which will improve your focus

Nikki Heald is a corporate trainer, presenter, businesswoman, founder of Corptraining and co-author of Views On The Way To The Top. Head to corptraining.com.au for more information.

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Learning to manage your time wisely not only improves productivity but also has important health benefits. When we feel more in control of our workload it’s only natural we are likely to feel less stress. How many times have you taken work home or logged on remotely late at night? If you find yourself doing this consistently, it’s important to recognise the toll on your health, wellbeing and ability to relax. See ‘Top 10 Time Management Tips’, at right, for advice that may assist you in increasing efficiency and managing your day better.

Remember, good time management is about managing yourself. We all have the same amount of time, but what we do with it and how we use it will determine whether or not we are successful. Happy planning!

1. Take time to plan your day either first thing in the morning or in the afternoon before you leave work. Create a to-do list or a system that you can refer to. Invest planning time to save working time.

2. Diarise and allocate specific times to attend

to certain tasks. Be sure to set time limits and stick to them. Utilise your most productive time.

3. Consider the 4 D’s of time management:

Do it – Only if it takes less than two minutes to complete Delegate it – Many low-payoff tasks can be delegated. Ensure the person you delegate to has the required competency or skills Dump it – Trivial or meaningless information or emails that are not required Diarise – Non-urgent tasks can be diarised to be done in the future

4. Keep track of time spent on low-payoff

and high-payoff activities. Try to keep a schedule for the week.

5. Batch or ‘chunk’ similar work, such as

processing or filing. This ensures you are in the headspace of doing repetitive work, and it promotes efficiency.

6. Avoid the urge to multitask. Research has

demonstrated that multitasking slows you down and increases the likelihood of error.

7. Allocate contingency or buffer time in

between tasks. This will allow for unexpected interruptions and distractions.

8. Plan for periods of relaxation, and try not to be a workaholic. Ensure you take your lunch break – resting improves focus and attention.

9. Don’t always be a ‘yes’ person. Saying yes

to others will certainly increase your popularity; however, it will impact negatively on your personal productivity. Learn to say no nicely.

10. Finally, resist the urge to check your inbox constantly – some things can wait and don’t require your immediate attention.

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BUSINESS STRATEGY / COMMUNICATION

CLIENT COMMUNICATION: DIGITAL VS ANALOGUE As blogs, newsletters and videos become normal modes of client communication, financial services professionals are heading into a brave new world of digitisation. But, as Anders Sorman-Nilsson argues, while new online communication channels can’t be ignored, old school communications are key to connecting with your customers’ enduringly analogue, emotional hearts

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We are entering a world of ‘digital disruption’: the idea that everything that can be digitised will eventually be digitised. This includes the customer service and marketing touchpoints that are essential tools for financial services professionals seeking to win the hearts and minds of tomorrow’s customer.

Digital disruption is a force to be reckoned with for financial services professionals such as mortgage professionals, financial advisers and insurance brokers, but it doesn’t mean that everything that can be digitised should necessarily be digitised. It’s essential to pay careful attention to your communications mix so that you don’t throw out the analogue baby with the digital bathwater. While the digital world represents a shiny new penny that is key to engaging with the customer’s increasingly digitised, rational mind, old-school communications remain vital to connecting with the customer’s enduringly analogue, emotional heart.

The digital world disintermediates the relationship between financial and bricks-andmortar investments and the end consumer, and that consumer is increasingly doing their due diligence digitally. This means that you run the risk of being digitally disintermediated unless you start providing more value to the customer, via both digital and analogue channels.

Think about it this way: digital is phenomenal for attracting new clients, and analogue is great for retaining (cross-selling and closing) existing clients.

Thus, you need to become a thought leader in the way that you provide informational, rational value to clients’ increasingly digital minds, while still connecting emotionally with their enduringly analogue hearts.

To be able to compete with digital comparison portals, and to protect yourself against digital disintermediation, it’s critical that you figure out which touchpoints you should digitise and which ones you shouldn’t digitise. This isn’t a choice between either the digital or the analogue channel.

Instead, you must go ‘digilogue’. Here’s how you can do this.

PROVIDE VALUE TO DIGITAL MINDS Put your industry thought leadership and professional expertise on the digital line by creating a great blog, newsletter, and well designed, interactive website. Create a ‘4-2-1’ digital content schedule: blogging four times per month, sending two digital newsletters per month, and creating engaging and educational video content at least once per quarter.

For example, a mortgage broker in Surry Hills, Sydney, could create a 4-2-1 digital content schedule to provide informational value to clients’ (and prospective clients’) digital minds, while also boosting their Google rankings. It would look something like this:

‘4-2-1’ DIGITAL CONTENT SCHEDULE

BLOG

1. “The impact of the RBA decision on home loans in Surry Hills” 2. “3 things to think about when buying in Surry Hills” 3. “Do’s and don’ts when talking about home loans with the major banks” 4. “Top 7 questions to ask yourself when choosing a home loan in Surry Hills”

DIGITAL NEWSLETTER

1. “3 tips to ensure a thicker wallet with the right home loan” 2. “Surry Hills property trends – why the time is right!”

VIDEO

1. Interviews with happy clients who now reside in Surry Hills, or video footage of lifestyle factors such as cafes and restaurants in the area

It’s absolutely necessary to make each tangible analogue encounter with clients, and prospective clients, world class OCTOBER 2013 | 59

BUSINESS STRATEGY / COMMUNICATION

BEING SEEN You must be seen in the digital world. Your prospects need to start trusting you as a thought leader in the digital world before making an approach to see you in the analogue world. In the digital world, where clients are doing their digital due diligence, offering engaging content is king.

Creating search-engine optimised, localised content that can be easily accessed by a prospect contextually via mobile devices will be key to your success in winning digital minds. For example, have content on offer that your clients can view while they’re walking up the street in your area and checking out property.

Big deals are usually still sealed with a handshake. There is something about the ritual of signing on the dotted line … that the digital world still cannot mirror CONNECT WITH ANALOGUE HEARTS Anders SormanNilsson is a global futurist, innovation strategist, keynote speaker at TEDx and author of the new book, Digilogue: How to Win the Digital Minds and Analogue Hearts of Tomorrow’s Customer. The book is published by Wiley and is available in bookstores nationwide and through Anders Sorman-Nilsson’s website at www. digiloguebook.com.

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While it is critical that you, as a finance professional, are digitally accessible and provide value to digital minds, you also have to ensure that you connect deeply with analogue hearts. Traditionally and enduringly, most transactions take place in the analogue, face-to-face world. Big deals are usually still sealed with a handshake. There is something about the ritual of signing on the dotted line with a Montblanc pen, for example, that the digital world still cannot mirror.

It’s absolutely necessary to make each tangible analogue encounter with clients, and prospective clients, world class. If a client, or prospective client, decides to spend analogue, face-to-face time with you, you must show incredible respect for the time they invest with you by connecting deeply with their analogue hearts.

In June 2013, when I spoke at the Million Dollar Round Table for global financial advisers and insurance professionals in Philadelphia, I gave the following recommendations. Have a think about them:

RECOMMENDATIONS • Scenario planning and consulting on a one-on-one basis with your client: My financial advisers at Sentinel Wealth do this incredibly well. We sit down each quarter face-to-face and revisit goals and the long-term plan. They provide me with hindsight, insight and foresight based on our plan, while providing a sense of partnership during these conversations.

• Writing a handwritten card: This will remind the client of their investment and savings goal, or congratulate them on goals achieved. When I was working with mortgage brokers who sold Advantedge products, one broker said that writing handwritten notes was his key way of adding analogue value and ensuring he retained his clients’ loyalty.

• Hosting investment and financial literacy workshops for clients and their friends: This is a great way of adding value to existing relationships, while also building a pipeline of trusted referrals.

• Speaking at industry conferences: This will boost your personal brand and thought leadership credentials, and harness your financial networks (accountants, mortgage professionals, stockbrokers, banks, etc.) both for speaking opportunities and face-to-face introductions. If you become a trusted adviser and thought leader within your industry, the likelihood is that the industry will talk about you.

This in turn can generate positive PR and recommendations.

There is a time to be digital and there is a time to be analogue. Financial services professionals must ensure they find the correct blend. Digital is phenomenal for attracting new clients and for boosting your own digitally amplified branding, while analogue can be great for building enduring trust, retaining business, and closing deals.

Increasingly, you must learn to shift seamlessly between the digital and analogue worlds. In one word, you must start becoming ‘digilogue’.

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OCTOBER 2013 | 61

LIFESTYLE / DAY IN THE LIFE OF

Day in the life of...

Tanya White, managing director, AFM 6.00am: Time to rise – who needs an alarm clock?

“Email time – inbox has over 45 items needing a response!

Got to love emails!”

And for that very reason I drift back for a five-minute snooze. Twenty-five minutes later I’m fully awake, running late, and charge off to the shower. David (husband) draws the short straw and has the joy of getting the girls dressed and breakfast started.

7.00am: Check phone for overnight emails, one of which needs a quick response.

7.30-8.05am: It’s crazy time at home: finishing breakfast, packing lunches, getting kids dressed and bundled into the car for daycare. Today is my turn to drop off the girls. Off I go for the one-hour round trip. All this whilst still checking a few emails and making calls from the car.

Tanya White

2.00pm: Quick telephone call/meeting with corporate lawyers on contract negotiations. Positive discussions allow me the ‘mind space’ to tackle other issues.

2.40pm: Review board reports and draft accounts. Run queries on various departments, staff and expenses.

9.15am: Arrive at work: first priority is my ‘to do list’.

I start every day with jotting down what ‘must’ happen, who must be called, and what must be completed. Emails are a constant for me and I spend every opportunity working on them.

3.10pm: More time spent addressing ongoing IT issues – this being a series of phone calls, equipment testing and emails to various parties.

4.00pm: Skype call with event coordinator in Bali to confirm final planning decisions on our upcoming national conference to Bali in November.

9.30am: Training session on a new service by one of the panel solicitors; however, I am running 10 minutes late and the session starts without me.

4.20pm: Meet with staff to provide update on conference planning, delegate tasks and sign off various proposals. Back to emails and returning phone calls, including lengthy chat with one of our funders.

10.20am: Slip out of the meeting to prepare for a conference call with our IT consultant.

5.35pm: Where’s the day gone? Finish up a few stray items – yes, including emails.

10.30am: Conference call goes till 11.45am. We are in

6.20pm: The journey home is spent chatting on the phone, first with mum, getting

the middle of system changes and have encountered a bump in the road which is slowing overall release of the project and causing me significant headaches.

an update on the girls, and then a call to our IT consultant (again). Get home; girls have had baths (thanks, David) and are about to sit down for dinner. After kids’ mealtime, a round robin of tidying up, cooking our dinner, preparing their dinner for tomorrow, responding to emails. Handy having a tablet on the kitchen bench.

11.45am: Update other directors with outcomes from previous meeting. Also email time – inbox has over 45 items needing a response! Got to love emails!

7.30pm: Time for a beverage (yes, alcoholic). I squeeze in a quick work call as well.

8.30pm: Once everyone is asleep, the house is quiet and we enjoy our evening meal.

12.30pm: Have a bit to eat at my desk.

9.30pm: And the battle starts again: do I read a book, watch TV or do some work?

1.00pm: Catch up with various staff – compliance,

Tonight work wins and I spend a brief time doing a bit of work on the computer.

HR (sign off payroll), operations – and I’m still responding to emails and phone calls.

10.20pm: Time for bed, but I get some ‘me’ time and read till 11pm. Lights out.

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Favourite things Michael Goerner, head of sales and business development, Connective

Michael Goerner – Connective

Place to be: Paris, as it is where, along with my wife Chrissy, we always launch our bi-annual month-long European adventure visiting old and new destinations. It always includes two bucket-list highlights. So far we’ve driven a Ferrari around the Monaco Grand Prix track, ballooned through the Loire Valley, and cruised a motor yacht through the Italian and French Riviera.

Drink: Love my beer, Carlton Draught. Choice of white wine is a Sauvignon Blanc, and Shiraz for a red.

Food: Nothing more satisfying than a choice cut of beef cooked medium rare, with either hot English mustard or a quality horseradish.

You can keep your sauces as I think they ruin a perfectly good piece of meat.

Music: Currently

Movie: One Flew Over the Cuckoo’s Nest.

I have it on DVD now, and I watch it probably once a year. Just love Jack Nicholson.

listening to the Rodriguez album, Cold Fact, which was inspired by recently watching one of the best documentaries that I have seen, Searching for Sugar Man.

Book: Love reading about real crime stories, so anything from the Crime Chronicles to Underbelly.

Sport: I think that it’s a prerequisite to barrack for Collingwood if you work at Connective and want to stay on the good side of the Lees brothers. The sport that I excelled in as a junior was cricket, as an opening bat and a first-change medium pacer who could move the ball a bit.

OCTOBER 2013 | 63

THE DATA / YOUR MORTGAGE INDEX

BUYER TRENDS

Key stats from borrowers making enquiries at Yourmortgage.com.au

$405,386

LOAN AMOUNT THE AVERAGE MORTGAGE $410,000 SIZE REQUIRED Average loan amount

PURPOSE OF MORTGAGE

15.4% To buy an

$400,000

52% The percentage of enquiries from first home buyers

investment property

$390,000 $380,000 $370,000 Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

Jun

Jul

52.2% First home buyer

TYPE OF MORTGAGE

14.3% Move home

40%

34%

30% 20%

1.3%

10% The percentage of borrowers looking for a standard variable-rate product

Give my home a makeover

0% Aug

Sep

Oct

INTRODUCTORY

Nov

Dec

Jan

STANDARD VARIABLE

Feb

Mar

Apr

BASIC VARIABLE

May

Jun

Jul

FIXED INTEREST

Visit www.mpamagazine.com.au/consumer-borrowing-data for all the latest borrower trends

64 | OCTOBER 2013

16%

Refinance to get a better deal

0.8%

I want some spending money

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JULY 2013 | 65