Branching Out - Resimac

feature / debtor finance
they’ve considered DF and making
them aware of it can be of huge
assistance,” Mr Pillai says.
DF is also seen as one of the
most effective ways to strengthen
the client/broker relationship.
“Brokers are already regarded
as trusted advisers, so that puts
them in a good position to expand
their repertoire and consider the
provision of financing in a business
capacity as well,” he adds.
In fact, there is nothing to fear
but fear itself when it comes to DF,
according to Mr Pillai, who feels
the greatest risk for brokers is not
being aware of all the financial
tools at hand.
“To branch out and simply ask
how their business is going carries
no risk and should be seen as part of
32 / breaking new ground
the role of being a trusted adviser,”
he says.
Andrew Boele Van Hensbroek,
managing director of Cashflow
Finance, strongly agrees. “I
can’t see a downside for brokers
because they’re introducing
another product to the range of
things they can offer,” he says.
“Plus, it’s a service that’s very easy
to set up and doesn’t require real
estate security like most other
forms of finance.”
the rewards
DF is generally commission-based
and most brokers will receive an
upfront fee. Commission varies
greatly between the different
lenders but in many cases it sits
at one per cent. In addition, most