Unlocking Asset Finance for new year growth

As we move towards 2023, brokers are fine-tuning business plans for the new year.

Buyers are still out there, but the urgency that gripped the market during 2022 has softened alongside reduced borrowing capacity.

The current cycle has encouraged many brokers to ask themselves important questions: “how can I unlock new revenue streams?”; “how can I create stickier relationships with my clients?”; “how can I leverage my loan book to grow my business and scale-up sustainably?”.

Today (Wednesday 14/12) LMG held a free webinar for the industry to better understand how we, and our partner Nodifi - the industry’s leader in asset finance technology - support brokers in diversifying and building their businesses. The webinar's packed with insights from Loan Market’s State Growth Manager Tim McKenzie, broker Michael Chadwick from Loan Market Elevate, and Loan Market Group Asset Finance General Manager Jordan Mutton. Watch it on demand here.

Across Loan Market, we’ve seen broker businesses benefit from asset finance diversification as well as strategic referral integration. Last year, Asset Finance volumes across the network increased by 42% from the 12 months prior.

On the back of brokers now originating seven in ten home loans in Australia, we have an expectation that all brokers will offer some level of Asset Finance service to their customers into the future. The relationship between broker and client will only get stronger.

The key is ensuring clients are being offered a comprehensive service, so the relationship is retained and a superior level of service is provided. Given the rising rate environment and changing property landscape, engaging with a broader loan remit makes sense for any business’s bottom line.

For instance, did you know statistics show that six months after a borrower has settled on their mortgage, they think about upgrading their car? With their mortgage experience relatively fresh in their mind, it makes sense for the client to reconnect with their broker for their car finance journey.

“We have an expectation that every broker will be involved in asset and commercial finance in some capacity in the future, whether that be writing directly themselves or accessing a trusted referral partner to ensure the customer needs are met,” says Stephen Scahill, Loan Market Group Commercial. “The trust and relationships with brokers is there to continue to drive growth in commercial and asset finance, just as we’ve seen in residential mortgages.”

To assist brokers with Best Interest Duty and other regulatory considerations, Loan Market Group Asset Finance provides:

• brokers with a tech platform (LMG Asset Finance) that’s been enhanced to produce BID documentation for brokers when writing asset finance, business and personal loans themselves;
• a substantial team of asset finance specialists who educate brokers on best practice processes and provide guidance on scenarios.

So if you’re planning for Asset Finance to be a bigger part of your 2023 plans - indeed, everyone should be – watch the webinar on-demand to hear how businesses are being transformed through diversification.