Promoted by Platform Consolidated Group:
Asset finance is something that brokers are increasingly looking at, and according to Platform Consolidated Group, broking in this space in Australia grew from 60 per cent to 67 per cent last year, with its books rising by nearly double that number.
In the 2017 financial year, the group saw the total number of transactions increase by 11 per cent on the year before, while total volumes rose by 14 per cent. PCG is now the largest asset finance aggregator in Australia, with a book totalling a whopping $3.2 billion and a lender panel of around 50.
Currently, PCG operates three different models: brokers can choose to fully refer all their asset finance needs to PCG, get directly accredited with PCG (alongside their existing mortgage aggregator), or have a hybrid of the two.
The vast majority of brokers — around 70 per cent of the 3,000-strong contingent — operates on a hybrid model. According to Mr Nicholls, CEO of PCG, this status might be partially down to brokers wanting to protect their clients; he noted, however, that an increasing number are opting to do a full referral.
“A lot of people are scared of agri finance,” the CEO said, “but we're experts at this, so when a transaction leaves us and goes to a funder, it's in the right format.
“Being a specialist in something means you are always going to get a better, more efficient result. Plus, with lenders tightening up on credit policy and extra compliance, it’s hard to keep abreast if your main business is not in this space.
"Some of the large aggregators are even saying to us: ‘Listen, we’d rather you do 100 per cent of the work on that because you're specialists’. So, they have checked out our robust compliance schemes and got ticks off from some quite major firms.”
Mr Nicholls added: “Lender appetite and lending criteria can change month on month, but our business development managers (BDMs) keep abreast of it all and see these deals all the time. So, a lot of where we differ is our customer service and the way we transact with the broker. We try to make it as easy as possible. We often say to brokers, the lazier you are, the easier it is for you — and they like that.”
What can Platform offer you?
Platform also comes with the support of over 40 qualified asset finance staff. Experienced and industry aware, they’re available to process your finance as quickly as possible and provide assistance whenever you need them. No matter how big or small your brokerage is.
Indeed, while equipment (including trucks and trailers) makes up the largest proportion of the company's loan value (at $1.7 billion), PCG's bread and butter is motor vehicles. Whether it be motor finance or consumer car loans, 80 per cent of all business coming through their doors is for automobiles.
“The great thing about some of these assets is that they turn over quickly,” Mr Nicholls said. “A home loan might be there for seven years, but an asset is there for about 35 months before it rolls into something new. It’s attractive because of that, and because there are multiple transactions for many clients, especially in the SME space. So, you won’t be doing one car in the next three years; you could be doing 20 cars.”
According to Mr Nicholls, brokers that are not yet offering asset finance should be looking more closely at their client base and leverage off their marketing to target car finance specifically. That, in turn, could lead to more asset finance business.
The company aims to help more brokers get on board with asset finance in the next year. It is also rolling out a $2 million IT system that can integrate with lenders directly (like an Apply Online for asset finance). It is expected that this move would provide greater efficiencies for brokers, lenders and Platform Consolidated, reducing touch points in the process.
If you have a mortgage aggregator for your residential finance, it makes sense to also work with a specialist for your asset finance. Grow your business by calling us today.
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