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For residential mortgage advisers, diversification can offer a safety net when times get tough and there can be little argument that times are hard at the moment. Commercial finance is not immune to the effects of the credit crunch, a prominent commercial lender has closed its doors to new business and it was not the first nor likely to be the last.

But even when not in the grip of a liquidity crunch, the commercial mortgage market does present a few challenges to those who are new to this type of finance.

The first of these challenges is the fact that there are no mortgage products. This often comes as a bit of a shock to residential mortgage advisers.

Commercial mortgages are priced according to the risk of each individual deal, usually by adding a margin to a given base rate such as the Bank of England base rate or Libor.

Some innovative specialist lenders have devised commercial mortgage products; however, the high street has yet to follow suit and the products from these specialists may not necessarily be the best option for the client.

So it is important for an adviser to keep abreast of any changes to lenders' criteria.

The second major challenge is the result of the no products point, there are no sourcing systems either (there were audible gasps of horror at an adviser seminar when this particular nugget of information was revealed).

So a commercial finance adviser has to rely on their knowledge and skill within the market to give an idea of pricing. There are specialist publications available (these include The Finance Book, Business Moneyfacts and Business Money), which list commercial mortgage lenders and the types of business they will consider lending on but these can only act as a guide as there are so many variables involved in each deal.

New advisers need to make contact with the business development managers from different lenders in their area to make sure they keep a good knowledge of the rates and terms available.

The way lenders assess risk for a commercial mortgage deal, in other words the way a lender calculates whether they are willing to lend and at what rate they are willing to lend, also raises a few issues.

Whereas for a residential mortgage, the terms are usually fairly straightforward, for a business proposition it is helpful for an adviser to be able to read and assess accounts and balance sheets, evaluate business plans, as well as assessing the experience and ability of the business owner.

Also, is the client looking to purchase just a property or are they looking to buy a going concern? Has the business been valued as well as the property? A bank will take all these things into account.

Commercial mortgage advisers get a good deal of satisfaction in working with businesses and helping them grow. And, let us be honest, commercial mortgages offer a good rate of return.

The average commercial mortgage written by National Association of Commercial Finance Brokers members is £400,000. With an average commission payment of 0.5 per cent of the loan, according to Business Moneyfacts, it works out at £2000 a deal for the adviser. For advisers willing to make the commitment to understanding commercial finance, the rewards are there.

Adam Tyler is chief executive of National Association of Commercial Finance Brokers