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The asset finance division of the non-bank lender has gained a controlling stake in Sonder Equipment Finance and welcomed a new head of sales.
Resimac Asset Finance has expanded its acquisition stake in equipment finance business Sonder Equipment Finance (Sonder), to have a majority share. (The size of the share has not been disclosed).
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The move followed on from Resimac’s decision to take on a 15 per cent stake in the company last year.
Under the move, Sonder Equipment Finance will remain as its own brand, but will only originate Resimac Asset Finance loans.
Sonder co-founder Danny Tuttlebee, who started the company with business partner Ward Horsnell, has joined Resimac Asset Finance as its new head of sales.
By taking on a controlling stake, Resimac aims to gain “greater reach, expertise and broker relationships” for its consumer and commercial lending products.
Resimac Asset Finance general manager Michael Moloney said he was “excited” by the potential of the combined organisation, suggesting it would particularly help efforts to gain more SME customers.
“Sonder has been a key part of our distribution strategy since Resimac first took a stake in the business last year,” Mr Moloney said.
“The acquisition means the Sonder team will be offering our competitively-priced products and friendly service to more people, helping sales growth.”
Mr Moloney told The Adviser that the partnership would help Resimac Asset Finance take its distribution capabilities to “where [Resimac Asset Finance] aspires them to be”.
It is estimated that around 500 brokers are currently using Resimac Asset Finance, with more expected to join as the brand continues to form aggregator partnerships.
The GM stated that, as distribution grows, there would also be more appointments and BDMs added to Sonder to work in tandem with the existing Resimac team. This will help “make sure [Resimac Asset Finance is] well positioned across the country”, he said.
Resimac Asset Finance is also preparing to soon implement a new system to “enhance origination settlement speed” and help it expand into consumer asset finance in 2023.
Speaking of his new role, the new head of sales, Mr Tuttlebee, commented: “Resimac Asset Finance has great foundations and a fantastic team.
“I can see enormous opportunities for us to become the leader in commercial and consumer asset finance.
“I’m delighted to be joining the team at such a pivotal time for both the business and the industry.”
Mr Tuttlebee noted that the asset finance market was “worth upwards of $120 billion”, making it an attractive market for brokers.
The addition of Sonder Equipment Finance marked the latest build in the Resimac Asset Finance brand, which launched last year following Resimac’s acquisition of International Acceptance Group (IA Group).
In Resimac Group’s 1H22 financial results, it outlined that Resimac Asset Finance had a settlements run rate of $400 million in the December quarter and that it was on track for $1 billion by financial year 2024.
[Related: Non-bank moves to fully acquire IA Group]
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