Provident Capital has announced its plans to increase the level of upfront it pays to brokers.
Effective from late last week, the non-bank lender increased its upfront commissions to 0.825 per cent on its premium range of products.
According to the company’s head of distribution – lending Steve Sampson, Provident Capital made the changes in a bid to reward its brokers for their ongoing business and support.
“Whilst many lenders are tinkering with their commission structures we’re determined to help brokers build their cashflows and their business with innovative products, without the impediment of clawbacks,” Mr Sampson said.
Provident Capital will also continue to offer a 0.165 per cent trail, to commence in year two for the life of the loan.
“We read a lot about brokers and consumers wanting a wider choice of lenders. We are a non-bank lender that wants to do business, having one of the most diverse product offerings in the market. We have a simple commission structure with no volume hurdles or other impediments.”
Provident's announcement comes just days after a number of the majors made changes to their commission and clawback structures.