Aggregator Connective Asset Finance is foreseeing strong growth in 2020 as it expects demand out of NSW and Victoria to remain robust on the back of continuing investment in large civil and infrastructure projects.
According to the head of Connective Asset Finance, Brent Starrenburg, the aggregator has seen asset finance volumes grow “substantially” in every state in 2019, with settlements up 64 per cent on 2018, according to the group.
“A considerable proportion of the growth came out of the Eastern states of NSW and Victoria, where asset finance settlements almost doubled over the 12-month period,” he said.
Mr Starrenburg added that he expected these states would continue to see strong demand for this type of finance, “buoyed by the continuing investment in large civil and infrastructure projects”.
Moreover, he predicted that similar opportunities will arise out of mining states Queensland and Western Australia, as the funding requirement for mining equipment grows.
The CEO of brokerage Moody Kiddell & Partners, Alex Moody, echoed Mr Starrenburg’s predictions of favourable market conditions in the year ahead, particularly along the eastern seaboard.
He said Melbourne population growth remains strong, along with significant infrastructure investment in the pipeline in Victoria and NSW.
“The Queensland government have committed a $23 billion investment in roads and transport infrastructure over the next four years, bringing them in line with NSW and Victoria,” Mr Moody said.
“All this activity drives equipment finance and provides plenty of opportunity for asset finance business to thrive and grow.”
Connective Asset Finance said it is aiming to grow asset finance settlements by 60 per cent in 2020, which it hopes to achieve through “organic growth of our broker community and by supporting our existing brokers to write more loans.”
[Related: AFG, Connective merger delayed]
Malavika Santhebennur is the features editor on the mortgages titles at Momentum Media.
Before joining the team in 2019, Malavika held roles with Money Management and Benchmark Media. She has been writing about financial services for the past six years.
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