In this fourth entry of the eight part series, Brendan Wright, CEO at FAST, outlines a new product which will help brokers to tap into Commercial opportunities through asset finance.
Brokers often ask me if it’s really worth the groundwork, for them to build a service offering that meets clients’ broader needs. My answer is a firm and resounding “yes”.
Being in a position to meet more needs of your existing client base not only strengthens your existing client relationships but can help you attract new clients too. By developing your business in commercial finance, you can diversify your revenue streams and help your business grow and reach new levels of success and profitability. It is fast becoming one of the most exciting growth opportunities for the industry and I urge brokers to get on board.
Brokers have been able to lodge their home loans through their aggregator platform to the lenders for some time now. However, across the industry I think we will see more and more examples of aggregators and lenders helping brokers lodge and meet the business lending needs of their clients in the same way. The commercial market continues to seek strong demand for motor vehicles, equipment, IT infrastructure and this is a key opportunity for brokers. Last year, asset finance became a greater focus for brokers, as a response to the government’s federal budget. In the budget, a tax allowance was announced for assets worth under $20,000 purchased before the end of the 2016/2017 tax year.
FAST has operated using our asset finance referral hub for a while, where brokers who don’t have the capability themselves, can help their client get finance for a piece of equipment, a vehicle or for a fitout. Through that though, over the last couple of years it has become clear to us, that having an opportunity for brokers to dip their toes in the water with asset finance if they are not doing it already, is really important.
While white labelling has proven to be very successful in the home loan market, white labelling in asset finance is minimal. At FAST, we’ll soon be launching a new white label product which will help provide finance to business clients. This product will be one of the first of its kind to be underwritten by a major bank and will be for vehicles and light commercial equipment up to $150,000. It is a way to help the home loan mortgage brokers meet the asset finance, leasing and vehicles funding needs of their clients who are business owners. It is simple, it uses electronic lodgement and it will offer a very competitive rate.
We are excited about this new and innovative white label product. Currently in pilot with 30 brokers, this white label asset finance product will be launched later this year. Watch this space!
Brendan Wright will continue to help brokers across the country learn how to unlock their potential in this blog series.
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