Having decided to become a finance broker you need to consider what you need to do to get started. The following points are in no particular order.
• Check the Regulation link and ensure that you meet all requirements for the state in which you’ll be trading.
• Most lenders will insist that you belong to the MIAA. MIAA membership starts at $140 per annum. Click here to check out their membership requirements.
• As part of your MIAA membership you’ll need PI insurance. Budget on $1,000 per annum as a guide.
• Then you’ll need to consider whether you’ll be operating as an independent broker dealing direct with lenders or whether you’ll be joining an aggregation group (see topic on Aggregators) or perhaps a franchise structure suits you best (See topic on Franchise).
• Organise your ABN and GST Registration. Australian Business Register.
• Be sure to consult your Accountant for the development of your Business and Marketing Plan and budgeting in general. Check out Business.gov.au for some great information. Business Plan guide. Marketing Plan Guide.
• These days no broking business should be without a good looking and informative web site. Check on availability of names here.
• You’ll also need to give consideration to the type of loan products you wish to specialise in. We wouldn’t recommend that you commence your broking business with too many lender’s products as too little knowledge is a dangerous thing is most. You are better off selecting a limited range of products and developing a great understanding of them first, then add additional products to your protfilo as your experience grows.
• Then there is the tricky decision, what do you call your business? Click here to get some tips. You’ll also need to get advice of your business structure ie sole trader, partnership or company. Also think about trademarking your name. A trademark can be more powerful in brand ownership than simply registering a business or company name.
If you are looking at becoming a Finance or Mortgage Broker check out the web site which has a wide range of companies who are actively looking for brokers right now:
Becoming a Mortgage Broker
Do check on both of these sites before you finalise a name:
ASIC: Click here
IP Australia: Click here
• Do the “Are you ready Diagnostic” test.