An award-winning non-bank lender has launched a brand new aggregation service after recognising a “definite shift” in broker attitudes towards commercial finance.
NLG Leasing this week announced the launch of its new service — NLG Aggregation. Frank Crombie, director of aggregator services at NLG Leasing, said the new model has been developed to meet brokers’ growing interest in directly accessing asset finance lenders at NLG’s volume wholesale rates.
“Over the last six months we’ve noticed a definite shift of brokers who have progressed from dipping their toe into asset finance to being more comfortable in the space,” Mr Crombie said.
“Brokers are increasingly realising how asset finance is a smart, flexible alternative that allows the reallocation of funds to positively affect their client’s business efficiencies, productivity, sales, and ultimately growth,” he said. “Similarly, reskinning cash flow effectively can also greatly enhance a client’s lifestyle and help achieve their personal goals. Whether it’s for professional or personal purposes, we encourage brokers to continue to simply ask whether their client’s funds are being utilised to their maximum capacity."
Mr Crombie believes this “advisory approach” deepens relationships, provides a competitive advantage and ultimately increases revenue.
In an aggregation market ripe for disruption, Mr Crombie said NLG Aggregation offers a number of immediate benefits to brokers, from volume discounts to direct access to licencing, compliance and support services, which alleviates the need to secure an individual credit licence.
This includes access to professional indemnity (PI) insurance, a dispute resolution body, compliance documentation, process flows, scenario support and full lender training and support.
Mr Crombie said brokers can select whether they obtain authorisation as a corporate credit representative and/or individual credit representative.
“These benefits are often key motivators to become a NLG credit representative versus obtaining an individual licence,” he said.
“The extension of our licencing to the individual broker is an immediate benefit that alleviates cost, resources and liability.”
WA-based broker David Hill saw the upside of coming under the NLG banner and relinquishing his individual credit licence.
“I initially held my own credit licence but decided to become a credit representative of NLG, as their support with compliance and training means I have more time to work with my clients. Importantly, it also enables me to keep my overheads down by saving money on PI Insurance and CIO membership,” he said.
Mr Hill said another iimportant factor in his decision to join NLG Aggregation was to acquire direct access to the groups’ extensive lender panel.
“My business is predominantly leasing and equipment finance to SMEs,” Mr Hill.
“I mainly write loans for small to large-scale commercial purchases, including cars, trucks, machinery, business equipment, and so forth. NLG Aggregation’s portfolio directly aligns with the different types of lending my clients require. NLG offers some excellent rates and deals, which means I can compete with the large brokerage groups and therefore write more business.”
NLG said its panel of over 20 lenders provides a suite of consumer and commercial products for vehicle and equipment needs and lifestyle assets.
NLG Leasing won the 2016 Non-Bank Lending Award for equipment, leasing and business finance.
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James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.