There is an “enormous opportunity” for mortgage brokers to expand into the energy sector, according to an asset finance provider.
The director of aggregation and strategic partnerships at Platform Finance, Damian Mantini, has called on mortgage brokers to capitalise on the growing demand from business riding the “energy wave”.
Mr Mantini said that businesses are increasingly looking to reduce costs through the use of alternative energy solutions, which include the provision of:
“Energy is the fastest growing sector in the finance space, and there are enormous opportunities for brokers that want to expand their footprint,” he said.
“We’re still in the early stages of the growth curve. For example, at present there’s only a 4-5 per cent penetration for commercial solar, but we anticipate that in the next five years we’ll see that increase to 10-15 per cent, particularly with more and more businesses adopting a green vision for the future and seeking to become more independent of market power prices.”
Mr Mantini said he believes mortgage brokers are well placed to transition into the energy sector.
“Mortgage brokers already have a rapport with their customers, so this is an easy next step. It’s all about incremental revenue,” he said.
“They can leverage their existing relationship and add value in a different way.”
Chris Murray, Platform Finance’s head of vendor and energy finance, added that it “makes sense” for businesses to invest on alternative energy solutions, pointing to the successful adoption of such technologies in other parts of the world.
“We’ve already seen the domestic solar wave gather speed and now it’s the turn of businesses,” Mr Murray said.
“Australia is a sun-drenched country, so it makes sense that business owners take advantage of this natural resource and the various government rebates that are available.”
He added: “Germany, which is among the countries with the least sunshine hours in the world, is a great example of what can be achieved. Solar power there has now become the cheapest mode of power generation.
“It provides great return on investment, which is another huge incentive – for business owners, vendors and brokers.”
According to Mr Murray, Platform Finance has set up a specialist energy division to address the growing need for energy-related finance and is working closely with mortgage brokers to help them upskill before entering the sector.
“We have tailored our energy division and taken a number of components from our wider lending model to apply to this burgeoning space,” adds Murray.
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