Australia’s leading asset finance broker reveals top tips for success

Ahead of speaking at the Better Business Summit 2024, Mr Rumble told The Adviser that brokers firstly ensure that they’re well across lender policy and niches for asset and equipment finance.

He said that any broker wishing to succeed in asset finance should educate themselves on lender credit policies and processes, as well as the types of asset finance clients a lender would be willing to finance, in order to ensure they match their clients with the right lender.

The Sydney-based broker explained: “If brokers don’t educate themselves on which lenders are good for the asset class a client is looking for, and aren’t doing all the checks beforehand, they’re going to let their client down.

“They might go to the wrong bank or get the wrong rate for clients purely because they didn’t educate themselves enough on every lender that is available across Australia.

“If we submit a deal, we know it’s going to be approved because we’ve done the work in the back end to assess it against the credit policy to ensure that it meets the requirements. That provides a better customer experience.”

He noted that brokers may be well placed to approach multiple lenders for one client (depending on their requirements) because lender appetite for different types of equipment may vary.

Approaching the right lender would allow clients to scale and grow without experiencing any pain points, Mr Rumble noted.

How to demonstrate a broker’s value

The second step is to ask clients informed questions to understand their business and goals and vision, while building trust and strategically placing their debt with appropriate lenders, Mr Rumble said.

“In asset finance, as soon as your exposure limit goes up to past $1 million, lenders start to turn their nose up at you because there’s too much exposure with the equipment,” he explained.

“You’ve got to educate your client about why you’re placing certain assets with a certain lender. The finance they receive could make it easier for them to scale their business.

“It also lets you showcase your value as a broker as clients can see that you know what you’re talking about.”

Yakka Finance provides vehicle finance, business finance, truck and trailer finance, and machinery and equipment finance. The brokerage’s clients include large transportation companies, agricultural businesses, as well as businesses in the civil construction and earthmoving space.

Having been at the helm of the business since 2018, Mr Rumble said he has worked to ensure he fully understands the industries his clients operate in and “can speak their language”.

“When we speak in our client’s language, they see that they’ve got an individual who has an in-depth understanding of their business operations and how they generate an income,” he told The Adviser, suggesting brokers wishing to succeed in asset finance do the same.

Telling the story through applications

After becoming well versed in lender policies and the benefits that financing a particular asset can have for the borrower, the next step is ensuring that this story is explained effectively in the application.

An effective loan submission conveys the story of the business to the credit analyst, including the source of its income, expenses, and profits, he explained.

“A credit analyst can understand the business and move straight to an approval based on the information we provide to the lender,” Mr Rumble said.

Providing “frictionless” client experience is also a priority for Mr Rumble as he services business clients who require large machinery like trucks and agricultural equipment.

As such, a labour-intensive loan application process that involves filling out forms would not be conducive to his client base.

The solution, Mr Rumble said, was to build an in-house process that enabled him and his team to complete applications over the phone so the clients could circumvent filling forms.

“You won’t write high volumes if you ask our clients to fill out the forms and make it difficult for them to complete a lot of different things. All the technology that we use is on our side. Our clients can run their business without having to do much during the loan application process,” he said.

Tips for new brokers

When asked how new brokers could thrive in a competitive field like asset finance, Mr Rumble urged them to be passionate and educate themselves about the market, lender policies, and the industries they want to specialise in.

“You also need to be a phenomenal communicator because you’re dealing with clients’ finances and they want to know what’s happening every step of the way. You need to earn the client’s trust so they know you’re achieving the right results on every transaction,” he concluded.

Hear more from Scott Rumble at the Elite Broker Live podcast session at the Better Business Summit at The Star, Sydney on 15 February 2024, where he will unpack what it takes to be a successful asset finance broker and top tips for other brokers to thrive in this field.

Better Business Summit 2024

The Better Business Summit and Awards 2024 will also be held in the following locations:

• Thursday, 22 February at the Convention Centre, Adelaide.
• Thursday, 29 February at Sofitel Brisbane.
• Thursday, 7 March at Hyatt Regency, Perth.
• Thursday, 14 March at The Crown Melbourne.

Click here to book your tickets and don’t miss out!

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For more information, including agenda and speakers, click here.

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