EOFY is the perfect time to diversify income streams
Mortgage brokers are racing to diversify their revenue streams as the property market slows, with opportunities created by record-breaking low interest rates, expanded asset tax write-offs for businesses, and increased demand for financing that often comes with the end of the financial year.
Last month, we saw a 36 per cent increase in the number of asset finance deals submitted via our processing platform, BOLT, revealing brokers are responding to the opportunity to expand financing capabilities and deliver more value to clients, ultimately protecting your businesses in these volatile times.
Creating new revenue streams will be key to survival for many brokers during the progressing economic reboot, according to Brent Starrenburg, Head of Connective Asset Finance.
“It’s critical that brokers understand they don’t have to be experts in asset financing to deliver value to their clients, they’ve already got the necessary skills to have the conversations, they just need to think outside the square,” said Mr Starrenburg.
In response to increased demand for brokers to access new sources of income and add value to customers, we has partnered with Premium Car Search to provide brokers a comprehensive option to support clients that are exploring vehicle financing.
Premium Car Search will now support the customers of Connective brokers to source the ideal vehicle to match the customer’s needs, allowing brokers to focus on processing the asset finance deal through BOLT, a quick and easy loan processing tool allowing brokers to write a broader range of financing deals with little additional experience in asset financing.
“With the instant asset tax write-off for small businesses expanded from $30,000 to $150,000 and the end of financial year looming, now is the time for brokers to think about expanding into the SME finance space, if they’re not already in it,” said Mr Starrenburg.
“The increased instant asset tax write-off for businesses, combined with increased demand for financing that often comes with the end of the financial year and the current environment of very low interest rates, creates a rich territory for brokers to diversify their offering.
“Both businesses and individuals will be looking for financing to acquire assets, such as company vehicles, without an added tax burden,” said Mr Starrenburg.
Many businesses find value in having a single platform, organisation or partner to support them in all needs relating to a particular area of their lives. Alternative financing provides brokers an opportunity to re-engage their existing client base to build a deeper partnership, while providing an avenue to source new clients.
“Clients are looking for a finance partner, not a one-trick broker. Once they find someone they trust and can have candid conversations with about their finances, they want that person to support them across all their financial and credit needs,” said Mr Starrenburg.
“The property market will likely continue to face headwinds as the economy tries to recover, so it’s important that brokers can adapt their skills and talk to clients about their need for credit more broadly and become this finance partner.
“We’re creating diversification opportunities for brokers, but we’re also helping them mine their existing client base to identify demand for broader financing.”
We offer members a library of lead generation email templates to help open conversations with clients about the full range of their credit needs. We also offer a comprehensive program of digital education, which gets you in front of industry experts and lenders through webinar content in a way that is interactive and engaging, creating a genuine space to learn new skills and discuss potential opportunities to grow revenue.
We are providing over 100 lead generation templates to members, many focused on how to begin conversations with clients about asset financing. Find out more about marketing support here.