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Brokers diversify income as EOFY looms

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Hannah Dowling 9 minute read

Brokers are “racing” to diversify their income ahead of EOFY, including the expansion into asset financing, according to Connective.

According to mortgage aggregator Connective, brokers are “racing” to diversify their revenue streams in light of a slowed property market, noting the opportunities provided by record-low interest rates, expanded asset tax write-offs for businesses, and a seasonal increase in demand for financing that often comes with the end of the financial year.

Connective reportedly saw a 36 per cent increase in the number of asset finance deals submitted through their BOLT processing platform last month, suggesting that brokers are responding to these opportunities and expanding their financing capabilities to deliver more value to clients, and ultimately protect their businesses in these volatile times.

According to Brent Starrenburg, head of connective asset finance, creating new revenue streams will be the “key to survival” for many brokers during the current economic climate.

“It’s critical that brokers understand they don’t have to be experts in asset financing to deliver value to their clients, they’ve already got the necessary skills to have the conversations, they just need to think outside the square,” Mr Starrenburg said.

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He noted that now is an opportune time to branch out and offer clients a more comprehensive set of finance options.

“With the instant asset tax write-off for small businesses expanded from $30,000 to $150,000 and the end of financial year looming, now is the time for brokers to think about expanding into the SME finance space, if they’re not already in it,” Mr Starrenburg said.

“The increased instant asset tax write-off for businesses, combined with increased demand for financing that often comes with the end of the financial year and the current environment of very low interest rates, creates a rich territory for brokers to diversify their offering.

“Both businesses and individuals will be looking for financing to acquire assets, such as company vehicles, without an added tax burden,” Mr Starrenburg said.

“Clients are looking for a finance partner, not a one-trick broker. Once they find someone they trust and can have candid conversations with about their finances, they want that person to support them across all their financial and credit needs,” Mr Starrenburg continued.

“The property market will likely continue to face headwinds as the economy tries to recover, so it’s important that brokers can adapt their skills and talk to clients about their need for credit more broadly and become this finance partner.”

Connective partners with Premium Car Search

In response to increased demand for brokers to access new sources of income and add value to customers, Connective has announced that it has partnered with car dealer Premium Car Search.

The new partnership will enable Connective brokers and their clients to find vehicles that “match the customer’s needs”.

“We’re creating diversification opportunities for brokers, but we’re also helping them mine their existing client base to identify demand for broader financing,” Mr Starrenburg said.

Connective is also offering members a range of tools and templates to assist in expanding their offerings, as well as digital education programs to assist them in learning new skills and providing opportunities to grow revenue.

[Related: We need to tackle VOI standardisation: Connective]

Brokers diversify income as EOFY looms
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Hannah Dowling

Hannah Dowling

Hannah Dowling is a journalist for The Adviser and Mortgage Business.

Prior to joining Momentum Media, Hannah worked as a content producer for a podcast catering to property investors. She also spent six years working in the real estate sector at a local agency. 

Email Hannah at: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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