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Specialist lenders have a range of products that can help brokers expand their referral networks, which in turn increases business volumes. One of those opportunities for brokers is assisting their small business clients with a solution to finance ATO commitments. Janelle Barnes of La Trobe Financial presents an opportunistic scenario for brokers to consider.
SMEs are obliged to collect GST and remit it to the ATO, along with PAYG withholding tax. This tax collection function can turn into an administrative and cash flow challenge for many.
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When I meet with brokers either individually or in a group, I outline how they can use this as a business opportunity by thinking laterally and using a specialist lender. Specialist lending products allow the broker to work with their clients to deliver solutions by assisting them through varying financial situations including managing ATO obligations.
It’s not often you meet a broker who does not want to make a strong business relationship with a referrer of quality business. Accountants have a wealth of knowledge around the needs of their business clients, but are often wary when approached by a finance broker asking for referrals from their customer base. What I advise is to turn the equation around from what can the accountant do for you, to what you can offer the accountant.
Accountants will know which of their clients are either on payment arrangements or have pressing ATO commitments, and therefore where a specialist lending solution can be applied.
From an accounting practice’s point of view, their cash flow can often be restricted by their debtors via outstanding fees, so why not open up the discussion with a solution-based option of how you, the finance broker, can not only address their clients’ finance needs, but assist in getting their own fees paid as well, which can be the genesis of a mutually beneficial referral partnership.
Accountants may not be aware that there are several funding solutions for their clients’ ATO commitments, and this falls into the broker’s area of knowledge and expertise. Successful brokers realise that this relationship does not need to be a single loan transaction, but an opening for all of the client’s business lending to be reviewed, including equipment and debtor finance.
The area of specialist lending allows for a problem-solving approach and satisfying outcomes for all parties involved. One of my best solutions that I like to share with brokers is the application I assisted a broker with where the client had a $1.1 million outstanding capital gains tax bill with the ATO, and not wanting to liquidate other income producing assets, he approached his bank for assistance. After being declined, he then approached a finance broker he knew who discussed the objectives with me, and together we were able to put a solution forward for this client that suited his requirements.
So take the opportunity to educate your current referrers and even utilise your knowledge to develop new referral sources. There are businesses out there looking for a solution. And remember, La Trobe Financial has a ‘no clawback on commission’ policy, so we partner with you throughout the relationship.
Jannelle Barnes is the senior manager of client partnerships at La Trobe Financial.
