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Seventy per cent of Shift’s equipment line transactions have been originated by the broker channel, the SME lender has revealed.
After launching its equipment line product last year, business finance lender Shift has revealed that brokers have been the driving force behind its strong uptake with small-business owners.
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The product, a revolving credit facility that provides businesses with up to $1 million for equipment purchases, has been growing in popularity over recent months, as Shift tailors its product following broker feedback.
For example, the lender originally enabled customers to submit invoices to transact and draw down on the line of credit, however, after brokers flagged that many looked after this side of their client’s business, Shift enabled brokers to submit these, too.
According to the lender, 70 per cent of its equipment line transactions have now been initiated by brokers.
Kristian McCausland, Shift’s sales director, commented: “Listening to the insights of our network is key to developing financial solutions that work for them and give their customers choice in how they transact.”
Mr McCausland noted that there had been an upswing in demand in recent months, as more small businesses look to finance assets for their business needs before the end of the financial year.
Speaking to The Adviser, he said: “There’s been a fair bit of media around the changes that were made in the budget to the instant asset write-off, with the number coming back down [from the COVID-19 level of $150,000 to $20,000] from 1 July this year.
“So, I think that given the customer can make up purchases up to the 30 June, they need the confidence that they can fund that straightaway and get the benefit of that deductibility in this financial year (provided the asset qualifies).
“June is, traditionally, a month when people are time-poor, they’re trying to get things done [before the end of financial year] and it can be hard to get things funded. I think that’s why we’re seeing more brokers using Shift, because they know the customer can actually have that accessibility when they need it.”
According to the sales director, the equipment line has been used for a range of business assets, including funding for second-hand equipment (for example, laptops) and fit-outs through to technology.
[Related: Shift launches Equipment Line revolving credit facility]
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