GoGetta’s national sales and marketing manager, Kevin Savvas, explains how brokers can master asset finance using the lender’s business model.
How difficult is it for a residential broker to master asset finance?
Often it’s about learning the product, and once the broker knows the ins and outs, their knowledge can be easily transferred. The GoGetta product, for example, is a 12-month rental with four flexible options. The client can purchase at any time, the client can return the equipment at the end of 12 months, if the client has a need for a longer term then they can continue to rent, and also if the client is really happy with the equipment at 12 months then we will look at up to 30 per cent per week rental reduction, which goes for 36 months and has a ‘make an offer’ purchase option at the end of the term (a nominal figure) – not to mention the 100 per cent tax deductibility component as well.
How can brokers identify an asset finance client from amongst their residential loan book?
Great brokers have relationships and conversations with their clients that go far beyond just the mortgage component. Often the mortgage broker is the trusted adviser, and the client will volunteer information and ask the mortgage broker what they should do. If the broker has another option for their business funding, then the ability to problem solve for the client will mean the client will stay with the broker longer and further become a trusted adviser to the client.
What is GoGetta’s value proposition for residential brokers looking to diversify into asset finance?
GoGetta can fund any age ABN and any age equipment. Because we offer a 12-month rental term with four flexible options, the client is not out of the finance market for three, five, seven, or up to 30 years as is the case with some other finance products. The broker has more contact points with their clients using the GoGetta product and also the ability to fund the client into a different asset if it’s not doing the job the client needs.
Do you see more brokers moving into asset finance in the future?
We have already seen the trend occur and start to build. Mortgage brokers are looking at products that will expand their business and also look at getting accreditation one-on-one with a finance company rather than go through an aggregation model. We believe that is one of the key planks in our product for it being so attractive to mortgage brokers, because it sits neatly within the business enquiries that they already receive. Not to mention we have a 98 per cent approval rate, so if a mortgage broker threw away $1 million in leads for asset finance in the last 12 months, I’m sure that a product that gave the broker $980,000 worth of funding in the next 12 months would make a dramatic improvement to every mortgage broker’s business that started to use the GoGetta model in conjunction with their existing book.