Asset finance sector set for strong year of growth
CEO of Moody Kiddell, Alex Moody teams up with Brent Starrenburg, from Connective, to discuss the opportunities to leverage favourable market conditions in 2020.
A review of 2019
Asset finance volumes grew substantially in every state in 2019, with settlements up 64% on 2018. A considerable proportion of the growth came out of the Eastern states of NSW and Victoria, where asset finance settlements almost doubled over the 12-month period.
Connective Asset Finance grew its membership base by 39% in 2019.
We had a number of large brokerage groups join our services over 2019, including Moody Kiddell & Partners, Transport Finance Australia and PTR Group WA
We have invested significantly in infrastructure and resources to support the strong growth of our membership and it’s pleasing to see more brokerages taking advantage of the value we are able to provide to their businesses.
Head of Connective Asset Finance, Brent Starrenburg’s outlook for 2020
After a year of record growth for Connective Asset Finance’s portfolio, we look to the year ahead and the favourable market conditions and are set to build on our 2019 performance.
We expect demand out of NSW and Victoria to remain strong, buoyed by the continuing investment in large civil and infrastructure projects.
We also foresee opportunities out of the mining states of Queensland and Western Australia as the funding requirement for mining equipment gains momentum.
Our objective is to grow asset finance settlements by 60% in 2020, and we aim to do this through organic growth of our broker community and by supporting our existing brokers to write more loans.
CEO of Moody Kiddell & Partners, Alex Moody’s outlook for 2020
We are also anticipating favourable market conditions in the year ahead.
We see positive signs for growth this year, particularly along the eastern seaboard.
Melbourne population growth remains strong and there is significant investment in infrastructure in Victoria and NSW.
The Queensland Government have committed a $23 billion investment in roads and transport infrastructure over the next four years, bringing them in line with NSW and Victoria.
All this activity drives equipment finance and provides plenty of opportunity for asset finance businesses to thrive and grow.
Focusing on growth for the asset finance sector is an important area for Connective, as we look to support our brokers and assist brokers joining us to get off to the best possible start. Reach out to your local BDM today.