October 2nd, 2018
Ben Cuthbertson is a mortgage and finance broker with leading Adelaide brokerage, Iron Advantage focusing on residential and commercial lending. In 2016, Ben was named Connective Excellence Awards Best Newcomer and has enjoyed great success with asset finance in the SA market. In this case study, Ben describes how BOLT helped him turn a complex deal that another broker turned down, into a profitable opportunity.
A complex scenario
A business client was referred to me after being turned away by another broker. As soon as I received his documentation I could immediately foresee complications as I could see that it would not meet lender requirements. The client had been trading as a company for less than a year after operating his business as a sole trader for more than three years and did not have the full set of financials required in the new company name.
BOLT Solution Summary
After analysing the documentation provided
and a discussion with the business’ accountant,
I still didn’t know if the deal would fly.
So, I got in touch with the BOLT Scenarios Team to see if they could help.
By the end of my six-minute phone call with them, I knew I could get the deal done.
The BOLT Scenarios Team assigned me a case manager who got the green light from two lenders.
There was a 5% variance on the interest rate between the two, but I was confident the deal could move forward and was able to advise my client we could go ahead.
I now had a happy client who was keen to get
the sharpest rate on offer. The BOLT Team recommended consolidating the financials from when the client was a sole trader with the financials from the current business. Within 48 hours, I received the documentation we needed from my freshly motivated client. Then all I had to do was upload them to BOLT, provide a detailed commentary on the scenario and provide notes to explain the consolidated financials.
12 hours later, I had an unconditional letter of approval from the lender with the sharper rate. And a client who was absolutely over the moon!
I like to think of asset finance not only as another income stream, but a highly valuable retention tool that increases our property lending profits in the long-term.”
In my experience, a scenario like this would usually have less than a 50/50 chance of approval. I was very wary of spending too much time on a deal that wouldn’t float, despite the opportunity to obtain a new client.
Thanks to the BOLT Team, both the client and I were extremely happy with the outcome. The client was able to purchase the new truck he needed with no deposit, affordable repayments and the business would own the truck outright after five years with no balloon payment. He was thrilled to get such a great deal after being turned down by another broker, so I can expect repeat business and plenty of referrals.
In the end, I only spent 3.5 hours on the deal and received a $2,600 + GST commission.
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