Growth rates rebound in Q2 and Q3 after a slow start to the year
COG Financial Services, an asset finance services business, has reported strong financial results for the financial year 2024.
The company financed $8.9 billion in net assets, marking a 16% increase from FY23.
“We experienced a slow start to FY24 as the pipeline built back up after a record finish in June 2023; however, growth rates bounced back over Q2 and Q3 before flattening out in Q4,” said Ryan Young (pictured above), chief executive of COG Broking and Aggregation.
“Activity in the upper end of the SME sector, with stronger-credit clients, fared best, particularly those companies with larger operations and fleets. And despite the economic headwinds, equipment continues to depreciate and require replacement.”
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In August 2023, COG expanded its asset finance presence with the acquisition of NFC and UFS aggregation businesses, solidifying its position as one of the largest commercial and consumer asset finance aggregator in the country. The company’s increased scale has allowed for greater investment in asset finance-specific technology and compliance support for brokers.
Young said that COG is committed to building tools tailored specifically to the asset finance market, noting that asset finance brokers and lenders often struggle with systems designed for mortgage processes.
“It has always been our intent to use our scale to deliver solutions and support that are specific to AF brokers,” he said. “We believe this market is big enough and distinctive enough to warrant specific tools and support, rather than AF brokers and lenders having to be the ‘poor cousins’ or fit in with mortgage processes and systems. We are constantly reviewing and enhancing our offerings to help our brokers grow their businesses.”
COG has also expanded its services, including novated leasing, the Westlawn in-house finance product, and COG CarSelect, a broker-first car-buying service. In FY24, COG CarSelect reported a 25% increase in car purchases, largely driven by its broker network. Additionally, Westlawn, which focuses on commercial finance for cars and equipment, saw a 104% increase in settlements, totalling $125 million for the year.
Beyond traditional asset finance, Young noted that clients are increasingly turning to asset finance brokers for non-bank solutions, such as working capital products and insurance premium funding.
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