MPA hears from a leading asset finance provider on the launch of their new aggregation service, NLG Aggregation.
Leading asset finance provider, NLG Leasing today launched a new aggregation service, NLG Aggregation. MPA hears from Director of Aggregation Services, Frank Crombie on what the service involves.
MPA: What is the point-of-difference with NLG Leasing's new aggregation service?
Frank Crombie: NLG Aggregation has been developed to meet brokers’ growing interest in having direct access to lenders (and corresponding wholesale rates) when writing asset finance loans.
The company’s three core points of difference are:
• Access to volume discounts - enabling direct access to wholesale rates and exclusive products not ordinarily available across a variety of mainstream and specialist lenders.
• Access to Australia’s largest panel of asset finance lenders - enabling direct access to Australia’s largest panel of asset finance lenders, providing an extensive suite of consumer and commercial products for all vehicle and equipment needs, plus lifestyle assets.
• Brokers don’t need their own licence to write the loan - providing brokers direct access to licencing, compliance and support services which alleviates the need to secure an individual credit licence. This includes access to Professional Indemnity insurance, a dispute resolution body, compliance documentation, process flows, scenario support and full lender training and support. Brokers can select whether they obtain authorisation as a corporate credit representative and/or individual credit representative.
MPA: Why should brokers join NLG Aggregation? What services can they expect?
FC: Along with the three core points of difference above, brokers also benefit from:
• Easy processing and complete back-end support: All loans processed through NLG Aggregation have direct access to a complete back-end support service. The team of specialist finance professionals are geared to assist streamlining and processing all transactions – which is particularly helpful if a loan becomes complex and/ or falls outside the typical buying criteria.
• No channel conflict: NLG Aggregation is an exclusive broker service that has no retail presence, which precludes a direct consumer channel and guarantees that brokers retain client relationships/ there is no third party conflict of interest.
MPA: What are the benefits for a broker in bringing asset finance into their business offering?
FC: 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.
Privately, diversification into equipment and car finance is a natural extension of the home loan process. Analysis of our portfolio indicates 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.
MPA: What is the point-of-difference with NLG Leasing's new aggregation service?
Frank Crombie: NLG Aggregation has been developed to meet brokers’ growing interest in having direct access to lenders (and corresponding wholesale rates) when writing asset finance loans.
The company’s three core points of difference are:
• Access to volume discounts - enabling direct access to wholesale rates and exclusive products not ordinarily available across a variety of mainstream and specialist lenders.
• Access to Australia’s largest panel of asset finance lenders - enabling direct access to Australia’s largest panel of asset finance lenders, providing an extensive suite of consumer and commercial products for all vehicle and equipment needs, plus lifestyle assets.
• Brokers don’t need their own licence to write the loan - providing brokers direct access to licencing, compliance and support services which alleviates the need to secure an individual credit licence. This includes access to Professional Indemnity insurance, a dispute resolution body, compliance documentation, process flows, scenario support and full lender training and support. Brokers can select whether they obtain authorisation as a corporate credit representative and/or individual credit representative.
MPA: Why should brokers join NLG Aggregation? What services can they expect?
FC: Along with the three core points of difference above, brokers also benefit from:
• Easy processing and complete back-end support: All loans processed through NLG Aggregation have direct access to a complete back-end support service. The team of specialist finance professionals are geared to assist streamlining and processing all transactions – which is particularly helpful if a loan becomes complex and/ or falls outside the typical buying criteria.
• No channel conflict: NLG Aggregation is an exclusive broker service that has no retail presence, which precludes a direct consumer channel and guarantees that brokers retain client relationships/ there is no third party conflict of interest.
MPA: What are the benefits for a broker in bringing asset finance into their business offering?
FC: 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.
Privately, diversification into equipment and car finance is a natural extension of the home loan process. Analysis of our portfolio indicates 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.
