MPA hears from NLG Leasing on why there are many benefits for brokers wanting to take on asset finance.
MPA: Why should brokers care about asset finance?
Frank Crombie Director of Aggregation Services, NLG Leasing:
The short answer is that diversification equates to opportunity, with a number of aggregators reporting that the biggest growth segments are asset and commercial finance.
Growing demand for motor vehicle and equipment leasing (private and commercial) represents a significant opportunity for mortgage brokers.
Privately, diversification into equipment and car finance is a natural extension of the home loan process. Recent analysis of our portfolio indicated that over 60% of people purchase a motor vehicle within 6 months of settlement of their home loan, as customers historically organise the home loan then look at the next largest purchase being a motor vehicle update. Consumers are increasingly savvy and are favouring financing structures beyond paying cash or adding it to the home loan, such as novated leasing or secured car loans, that enables upfront use of an asset without the risk or pressure of a sizable upfront payment. This model also enables the redirection of cash-flow into other areas.
The commercial market is also demonstrating strong demand for motor vehicles for business purposes, along with increasing requirements for manufacturing equipment, earthmoving equipment, computers and office technology and so forth. In particular, SMEs are continuously seeking alternate financing solutions. Equipment acquisition through a leasing structure is a smart alternative that allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.
We encourage brokers to simply ask private and commercial clients about their current assets and financial goals to determine if they’ll benefit from asset financing. This advisory approach deepens relationships and supports the growing expectation that brokers provide a full service offering. The upshot is that clients are ring-fenced, and brokers benefit from increased revenue and a competitive advantage in a highly aggressive market.
MPA: Which clients that brokers already have would be interested in asset finance?
FC: There are two target groups that may benefit from asset finance:
• Consumers – if your client has settled on a home loan, they’re likely to be considering updating their motor vehicle in the immediate future. PAYG customers can purchase caravans, motorbikes, boats and other recreational items in addition to their motor vehicles. Consumers consistently favour financial solutions that enable the upfront use of an asset without the risk or pressure of a sizable upfront payment.
• Commercial – the commercial market (in particular SMEs) continue to demonstrate strong demand for motor vehicles, equipment, IT infrastructure, etc, for business purposes and are receptive to alternate financing solutions. Equipment acquisition through a leasing structure is a smart alternative that allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.
Another benefit of asset finance is the quick turnaround times (usually 1-3 days), which can be of immediate benefit to the customer.
MPA: What are the benefits of providing asset finance for the broker and their clients?
FC: Top benefits of providing asset finance - brokers:
1. Asset finance represents a ‘low-hanging’ alternate revenue stream
2. There is an immediate opportunity/ growing demand for asset finance (private and commercial)
3. Diversification into equipment and car finance is a natural extension of the home loan process
4. Offering asset finance ring-fences clients by creating deeper and stickier relationships
5. Providing asset finance provides a competitive advantage in a highly aggressive market
6. Quick turnaround – most loans are completed in 1-3 business days
Top benefits of providing asset finance - consumers:
1. Private – Consumers consistently favour financial solutions that enable the upfront use of an asset without the risk or pressure of a sizable upfront payment. A leasing structure also enables the purchase caravans, motorbikes, boats and other recreational items in addition to their motor vehicles.
2. Commercial - Motor vehicle and equipment acquisition through a leasing structure allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.
3. Quick turnaround – most loans are completed in 1-3 business days
MPA: How could a broker best incorporate asset finance into their offering and how can NLG help?
FC: We encourage brokers to simply ask private and commercial clients about their current assets and financial goals to determine if they’ll benefit from asset financing. This advisory approach deepens relationships and supports the growing expectation that brokers provide a full service offering. The upshot is that clients are ring-fenced, and brokers benefit from increased revenue and a competitive advantage in a highly aggressive market.
NLG Leasing is an established asset finance provider that is only available to the financial services industry (with no direct consumer channels). It enables finance professionals immediate access to an extensive panel of lenders and a wide range of products at wholesale rates, with a scalable commission/ fee structure (decided by the individual broker or accountant) to reflect the individual client relationship and circumstance.
Brokers consistently select NLG Leasing for their asset finance requirements due to the company’s:
• Extensive product suite: single source access to an extensive panel of equipment/ car finance products.
• Exclusivity to B:B sector: only accessible to finance professionals/ not available to consumers directly.
• Best-in-market rates: access highly competitive loans at wholesale rates.
• Specialist advice and complete back-end support: a team of experienced specialists review all applications, provide recommendations for suitable/ alternative products, as appropriate, and assist with closing deals.
• Highly sophisticated technology: the NLG Connect platform is a customised, intuitive system that provides an easy-to-use overview of all wholesale rates, products and has an adjustable fee/ commission function.
• Quick turnaround: loan applications are processed quickly and efficiently (1-3 days).
• Accessibility: NLG Leasing provides equipment/ car financing nationwide.
Frank Crombie Director of Aggregation Services, NLG Leasing:
The short answer is that diversification equates to opportunity, with a number of aggregators reporting that the biggest growth segments are asset and commercial finance.
Growing demand for motor vehicle and equipment leasing (private and commercial) represents a significant opportunity for mortgage brokers.
Privately, diversification into equipment and car finance is a natural extension of the home loan process. Recent analysis of our portfolio indicated that over 60% of people purchase a motor vehicle within 6 months of settlement of their home loan, as customers historically organise the home loan then look at the next largest purchase being a motor vehicle update. Consumers are increasingly savvy and are favouring financing structures beyond paying cash or adding it to the home loan, such as novated leasing or secured car loans, that enables upfront use of an asset without the risk or pressure of a sizable upfront payment. This model also enables the redirection of cash-flow into other areas.
The commercial market is also demonstrating strong demand for motor vehicles for business purposes, along with increasing requirements for manufacturing equipment, earthmoving equipment, computers and office technology and so forth. In particular, SMEs are continuously seeking alternate financing solutions. Equipment acquisition through a leasing structure is a smart alternative that allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.
We encourage brokers to simply ask private and commercial clients about their current assets and financial goals to determine if they’ll benefit from asset financing. This advisory approach deepens relationships and supports the growing expectation that brokers provide a full service offering. The upshot is that clients are ring-fenced, and brokers benefit from increased revenue and a competitive advantage in a highly aggressive market.
MPA: Which clients that brokers already have would be interested in asset finance?
FC: There are two target groups that may benefit from asset finance:
• Consumers – if your client has settled on a home loan, they’re likely to be considering updating their motor vehicle in the immediate future. PAYG customers can purchase caravans, motorbikes, boats and other recreational items in addition to their motor vehicles. Consumers consistently favour financial solutions that enable the upfront use of an asset without the risk or pressure of a sizable upfront payment.
• Commercial – the commercial market (in particular SMEs) continue to demonstrate strong demand for motor vehicles, equipment, IT infrastructure, etc, for business purposes and are receptive to alternate financing solutions. Equipment acquisition through a leasing structure is a smart alternative that allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.
Another benefit of asset finance is the quick turnaround times (usually 1-3 days), which can be of immediate benefit to the customer.
MPA: What are the benefits of providing asset finance for the broker and their clients?
FC: Top benefits of providing asset finance - brokers:
1. Asset finance represents a ‘low-hanging’ alternate revenue stream
2. There is an immediate opportunity/ growing demand for asset finance (private and commercial)
3. Diversification into equipment and car finance is a natural extension of the home loan process
4. Offering asset finance ring-fences clients by creating deeper and stickier relationships
5. Providing asset finance provides a competitive advantage in a highly aggressive market
6. Quick turnaround – most loans are completed in 1-3 business days
Top benefits of providing asset finance - consumers:
1. Private – Consumers consistently favour financial solutions that enable the upfront use of an asset without the risk or pressure of a sizable upfront payment. A leasing structure also enables the purchase caravans, motorbikes, boats and other recreational items in addition to their motor vehicles.
2. Commercial - Motor vehicle and equipment acquisition through a leasing structure allows the reallocation of funds to other areas of the business that can have a positive effect on efficiencies, productivity, sales, and ultimately growth.
3. Quick turnaround – most loans are completed in 1-3 business days
MPA: How could a broker best incorporate asset finance into their offering and how can NLG help?
FC: We encourage brokers to simply ask private and commercial clients about their current assets and financial goals to determine if they’ll benefit from asset financing. This advisory approach deepens relationships and supports the growing expectation that brokers provide a full service offering. The upshot is that clients are ring-fenced, and brokers benefit from increased revenue and a competitive advantage in a highly aggressive market.
NLG Leasing is an established asset finance provider that is only available to the financial services industry (with no direct consumer channels). It enables finance professionals immediate access to an extensive panel of lenders and a wide range of products at wholesale rates, with a scalable commission/ fee structure (decided by the individual broker or accountant) to reflect the individual client relationship and circumstance.
Brokers consistently select NLG Leasing for their asset finance requirements due to the company’s:
• Extensive product suite: single source access to an extensive panel of equipment/ car finance products.
• Exclusivity to B:B sector: only accessible to finance professionals/ not available to consumers directly.
• Best-in-market rates: access highly competitive loans at wholesale rates.
• Specialist advice and complete back-end support: a team of experienced specialists review all applications, provide recommendations for suitable/ alternative products, as appropriate, and assist with closing deals.
• Highly sophisticated technology: the NLG Connect platform is a customised, intuitive system that provides an easy-to-use overview of all wholesale rates, products and has an adjustable fee/ commission function.
• Quick turnaround: loan applications are processed quickly and efficiently (1-3 days).
• Accessibility: NLG Leasing provides equipment/ car financing nationwide.
