Equipment finance lender launches SaaS offering

The lender currently works with finance brokers, machinery owners, and dealer partnerships to enable businesses to provide heavy mobile equipment owners with a variable payment model based on how much and how a machine is used.  

It utilises a device, which is installed on operating equipment to feed data back to its software and determine real-time asset degradation.

coaXion has now announced a new pilot with specialist non-bank lender Yellowgate Equipment Finance as it works to expand its solutions to other lenders both in Australia and in the US.

The SaaS partnership will see lenders utilise its asset degradation and valuation technology to select customers.

coaXion has also now opened a new funding round of over $3.5 million to “refine and launch” its usage-based heavy equipment finance platform to lenders and leasing companies in the US and is reportedly in talks with other non-bank and bank lenders to join the pilot. 

Chief executive Colin Armbruster commented that the traction achieved with its “tech-enabled usage-based lease and chattel mortgage solutions” showed that lenders can “achieve premium pricing by providing a better, flexible outcome for end-user customers”.

He continued: “Our tech is live and working with different asset classes for excavators, dozers and graders and customers are choosing our flexible usage-based solution.

“We’ve had strong demand and great engagement from brokers sourcing customers for us, and we’ve been market tested to prove customers value the insights they gain for their business.” 

coaXion co-founder Chris Maycock said its 12-month focus will be on scale preparation and onboarding initial SaaS customers, refining the technology and processes to support scale deployment.  

“The end-to-end technology solution is now in production and is delivering real-time degraded asset value and usage-based finance analytics,” Mr Maycock said. 

“Our proprietary technology comprises IoT hardware, cloud-based machine-learning and a customer facing app … While most fintechs are focused on the origination side of lending, coaXion’s platform means lenders can deliver a new type of finance to the marketplace in a way that reduces risk for all parties and adds real value to the entire asset finance ecosystem.

“Beyond lending, there’s the potential for coaXion’s tech to further disrupt the market and provide additional revenue streams with real-time fleet equity/valuations, usage-based rental pricing and an equity redraw.”

coaXion has so far financed $2 million of assets with $20 million in train.

[Related: New qualification for equipment leasing and commercial finance launches]