October 8th, 2018
A BOLT Case Study with Ray McDonald, Iron Horse Financial Services & Solutions
Ray McDonald is a regional broker working in the Snowy Mountains. His business provides a full range of finance services and he operates only with assistance from his wife Joanne, who is studying to become a qualified broker. Ray is a big fan of Connective Asset Finance and BOLT and says having access to it is “like having lots of staff.” So, we decided to talk with Ray and find out how he uses these services to increase the success and profitability of his business. Here’s what he had to say.
Give us some background – how did you get into broking?
I was with Westpac for 38 years and I spent the last 20 working in the Snowy Mountains region. About 2 years ago, they offered me early retirement (but I soon got sick of that) and decided on mortgage broking as a second career.
Why did you decide to offer asset finance?
I decided from the start that my business model would cover the full range of loan types – commercial/business, consumer asset finance and residential loans. That’s the nature of the business when you’re a regional broker I guess – you’re not going to do well if you can’t look after all the customer’s borrowing requirements. I had a lot of clients in the Snowy Mountains already and knew what kind of service they would expect.
How much of your income is derived from commercial and asset finance?
My very first deal was an asset finance deal and I’ve been doing well from it since the word go. There’s a big demand for it in my region. We settled $1.8 million in the first six months of this year, just from asset finance deals. If you’re in the business finance sector you can do well up here – customers want cars, trucks, farm machinery and all kinds of equipment, you name it – the trick is to get them to ring you before they ring the bank.
So, how often do you lodge deals via BOLT?
At least two a month, probably more. I’ve another five deals in the pipe-line right now, so that’s obviously growing. Those five deals will probably settle another $550K on top of the $1.8m we’ve settled already this year. This represents about 33% of my overall income, but because of BOLT, doing the deals has only taken up about 5% of my time.
BOLT provides a good, solid service to a broker. It does provide access to a wider variety of lenders – those boutique lenders too. But for me it’s about all the time and hassle it saves me. I could go direct to my big lenders and cut BOLT out, but then I’d have to do all that nitty gritty stuff and it’s just too hard.
“BOLT represents 33% of my overall income, but only takes up 5% of my time.”
How would you describe your experience with BOLT?
It’s fantastic! I love it! Really good. BOLT is worth it, there’s no doubt about it.
Everyone on the BOLT Team is great – they’re all so helpful and I’m on a first name basis with everyone. We’re powering ahead – nothing is too hard for them, or for me with them on my team. They’re always quick. They jump on a deal and they never give up on it.
Having Connective Asset Finance and BOLT is worth every cent to me. In my business it’s just me and my wife. BOLT is like having lots of staff who know everything about the lenders and what they can do. They’ll even ring the client if you don’t have time.
Has BOLT improved the application process?
Yes. I know the whole process from start to finish because of my background at Westpac, and I know exactly how time consuming it is to do all the stuff manually that BOLT does for me.
Lodging the application in the system is the easy part. The hard part is covering off all the details first and making sure everything is right – getting the right rate and terms, the right repayments for their budget, getting the deal through the credit department, chasing all the documentation, getting the deal drawn up… BOLT takes all the pain away because the team does all that stuff for you.
“BOLT is like having an assistant to help whenever you need one.”
BOLT reduces the time I spend on the whole process. I prefer to pay a percentage to the BOLT Team to get all that worry and hassle out of my life. Say you’re too busy to do the deal in time, or you want to take a holiday. You can flick it to the BOLT Team and they’ll handle it entirely if you want! It’s like having an assistant to help whenever you need them.
Do they help you sort out complex scenarios?
Yes – that’s another fantastic thing about BOLT. They’ll work with you to find the right solution for your customer no matter how complex their requirements, and that is great for business. They’ve helped me find lenders to do deals when I had no idea who would take it on. They recently helped me finance a helicopter!
Want to find out more about BOLT?
Simply contact your local Connective Asset Finance BDM on the details below or talk with your Connective Broker Support Manager today.
Steve Light Connective Asset Finance BDM for VIC/SA/WA Phone: 0499 399 433 or email firstname.lastname@example.org
Phillip Meehan Connective Asset Finance BDM for NSW/QLD Phone: 0488 788 839 or email email@example.com