Branching Out - Resimac

Recommendations

Info

feature / Leasing and equipment finance 36 / branching out “clients with financing needs return several times a year – simply because their assets are the wealth generators in their business” While a course may cost $500 or so, Mr Ward is adamant a broker will earn this back on their first deal. Mr Moodie adds that while there is a learning curve, it’s not a steep one and brokers need not be daunted: “Brokers new to leasing can become competent after completing a handful of deals,” he says. “The key is to begin with simple car deals before moving into the equipment area.” Pros and cons While leasing and equipment finance can be an opportunity to boost revenue relatively quickly, when it comes to obligations at settlement it lacks the security of residential lending. There is no requirement for the client to settle in leasing finance deals, even in the final document stage, unless they have put down a large deposit first. Mr Ward warns brokers to be wary of companies holding onto invoices when the client has come to you to finance their asset. “I once had a car yard hold onto the invoice, which made me look bad, but as long as you keep your client in the loop it’s not too bad,” he says. The need for caution, however, should not overshadow the benefits that can flow from offering leasing and equipment finance – which can include the opportunity to cement referral relationships and cross sell to existing clients. Leasing and equipment clients may well be already on a broker’s books. “A broker’s existing client base is the first and most crucial step in finding a market,” says Mr Moodie. Mr Ward adds that typical requests involve clients wanting to trade up when their vehicle reaches the end of its lease or hire purchase term. “It’s great – it’s like trail income only it’s every three or four years,” he says, “but if you have a large enough portfolio it means new business every month.” Leasing and equipment finance can also open the door to a client’s other borrowing requirements. “If I’m writing this business for my client it means I’m not referring them out or more importantly giving another finance provider the opportunity to look after my clients’ other lending needs,” Mr Ward says. Further business can be obtained from referral sources, including tax specialists (due to the range of tax implications involved), financial planners, equipment suppliers, trade and industry associations and commerce organisations. However, an accountant is the crucial referral source in this area of lending, says Mr Ward, adding that he recommends establishing a strategic relationship with one or several accountants specifically to obtain equipment finance business. “You can pick up those deals plus the collateral advantages afterwards,” he says. Mr Moodie also believes accountants are the key player in the area. “Often a client will discuss product type, structuring and GST issues with their accountant prior to seeking finance and this is where a broker benefits from that relationship,” he says.
Go the extra mile on cruise control. Vehicle and equipment finance: let us do the hard work for you. You know that diversifying can be the easiest way of attracting extra revenue, but you want to make sure that whatever you offer reflects your standards and deepens your client relationships. This is where Macquarie Leasing comes in. Whether you are a seasoned lease writer or a novice, you’ll find that we’ll back you with just the right service and support. Macquarie’s specialist BDMs and a dedicated Business Support Team understand your industry inside out; they know who you are and their sole purpose is to make your life easier. Application process and accreditation are simple, and we’ll even train you if required. We’ve been investing in your industry for 14 years and we believe it makes all the difference. Call us to discuss how we can help you delight your clients with smart solutions and impeccable service. Macquarie Leasing To speak to your BDM please call 1800 005 046 or email introducer@macquarie.com The referral of applications to Macquarie Leasing Pty Ltd (“Macquarie Leasing”) may be regulated by the National Consumer Credit Protection Act 2009 and related regulations. In the absence of an exemption for your circumstances, you may be required to obtain an Australian Credit Licence. You should make your own assessment and seek appropriate advice. All applications are subject to the satisfaction of approval criteria, and terms and conditions apply. No part of this document is to be construed as an offer capable of acceptance or as a solicitation to obtain a financial product. The information is not an expression of opinion or recommendation and does not constitute financial, accounting, taxation, general or personal advice and should not be relied on as such. Macquarie Leasing is not an authorised deposit taking institution for the purposes of the Banking Act (Commonwealth of Australia) 1959, and the obligations of Macquarie Leasing do not represent deposits or other liabilities of Macquarie Bank Limited. Macquarie Bank Limited does not guarantee or otherwise provide assurance in respect of any of the obligations of Macquarie Leasing. © Macquarie Group
Page 1 and 2: future proof supercharGe why insura
Page 3 and 4: Improving the ‘one-stop shop’ D
Page 5 and 6: Winner of Wholesale Aggregator for
Page 7 and 8: Moving into new areas might be a da
Page 9 and 10: Supporting SMSF-backed property inv
Page 11 and 12: okers that don’t cross sell run t
Page 13 and 14: Do better with a St.George Super Fu
Page 15 and 16: Insurance Is one of the most freque
Page 17 and 18: Protection and peace of mind Integr
Page 19 and 20: Borrower set rate for 12 months. In
Page 21 and 22: services and start saying, ‘Well,
Page 23 and 24: A dominant force in the market Enha
Page 25 and 26: ot for all Brokers are in a prime p
Page 27 and 28: Why target specialist and non-confo
Page 29 and 30: Self-managed super funds are the fa
Page 31 and 32: SMSF Loan 70% LVR No upfront fee;
Page 33 and 34: A Smart Solution for Self Managed S
Page 35 and 36: Motoring to success Motor vehicle l
Page 37: Leasing and equipment financing isn
Page 41 and 42: Put it on the bill Story / Emily Mc
Page 43 and 44: Q A & Suresh Pillai, Liberty Financ
Page 45 and 46: Quick cash, long-term gains Story /
Page 47 and 48: Which direction will you choose whe

Branching Out - Resimac

Create successful ePaper yourself

Delete template?

Save as template?