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AFG has revealed that it will be soft launching a commercial broking platform in the second half of this financial year.
According to the aggregator, the platform will initially cover commercial mortgages and expand to include asset finance and unsecured finance throughout the second half of the 2018 financial year.
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It plans to have an initial panel of up to 10 lenders, aimed at the core SME finance market and will provide “simple training and direct accreditation” for AFG business to help deliver “streamlined efficient business finance solutions to SME customers across the country”.
AFG chief executive officer David Bailey commented: "So this means, if you're an AFG broker and you undertake some simple training on the platform and even if you have a lack of commercial experience, the lenders have indicated that you'll be automatically accredited to write commercial business... To do all of this we are investing now in additional resources."
There will be simple training and direct accreditation for AFG brokers to help deliver streamlined efficient business finance solutions to SME customers.
So this means, if you're an AFG broker and you undertake some simple training on the platform and even if you have a lack of commercial experience, the lenders have indicated that you'll be automatically accredited to write commercial business if you are an AFG broker. To do all of this we are investing now in additional resources.
The AFG Business platform is the result of the company’s strategic alliance with international fintech company Biz2Credit, and it aims to provide access to Biz2Credit’s patented analytics and financial services technology to allow small business borrowers access to a range of options including faster access to capital.
Speaking last year, Mr Bailey said: “We think this is critical to ensure small to medium enterprises (SMEs) can also prosper in the low interest rate environment, while also process funding requests in real time. The ability to receive assistance when and where a customer needs it is one of the key value propositions of a broker.”
Mr Bailey said that the mobile-first digital application approach means that an AFG broker can help their clients apply for credit from any device, laptop or smartphone at a time and a place (including evenings and weekends) that suit their client.
AFG has said that asset financing “presents an increased opportunity in the medium term”, and that it hopes that the new platform will drive growth in commercial SME lending, which grew by 20 per cent in the 2017 financial year, accounting for $6.8 billion of the loan book.
According to the full-year results, asset finance settlements were up by 20 per cent, with commercial settlements up by 3 per cent to $2.8 billion.
[Related: Major aggregator reveals big plans for commercial broking]
