Why asset finance calls for specialist solutions

Q. What are the benefits of working with a specialist asset finance aggregator?

Most of our brokers wake up thinking about financing a truck, equipment, or cars. They don’t wake up thinking about home loans. These brokers need specialist skills from their aggregator.

If you want to provide a full asset finance service to your clients, you need the full range of lenders and quoting options and, from time to time, you will need expert support. That is what a specialist aggregator provides.

Q. What support does COG Aggregation provide?

Being a specialist asset finance business means everything we do is to support asset finance brokers.Our technology, people, training, compliance, and national conference all revolve around asset finance and services to assist asset finance brokers.

We have our own asset finance business, Westlawn Finance, which is exclusive for COG Aggregation brokers. Products we have developed, like our car buying service COG CarSelect and our technology platform COG Connect, have been built to support brokers who specialise in asset finance. We will continue to invest in tools that specialist asset finance brokers need.

Even our compliance services are solely focused on asset finance, which is very different to other products such as mortgages.

Q. Why should brokers aggregate through COG Aggregation?

COG Aggregation is the largest asset finance aggregation business in Australia. Last year, our brokers originated $8.9 billion in net assets financed and settled over 130,000 deals. An estimated one in four asset finance deals are settled by a COG broker. With COG’s scale and size, we provide solutions and support that are specific to asset finance brokers.

But we don’t deliver a one-size-fits-all solution, far from it. Each business is unique, that’s why we mould our relationship to suit our broker’s business needs, not the other way around.

Q. How would you describe the asset finance market at the moment?

The retail/consumer end of the market has seen tougher conditions, caused by higher interest rates and the general increase in the cost of living, but the commercial end continues to be relatively strong.

Transport and infrastructure assets such as cranes and earthmoving equipment, continue to show strong demand. This is partially driven by supply side constraints, although to a lesser extent post-COVID-19, these constraints have significantly reduced.

The market is softer post-government incentives such as the instant asset write-off, albeit this remains in the lower segment of assets under $20,000.

Q. What qualities are borrowers looking for in an asset finance solution?

Primarily, a broad range of options along with a simple solution. Application and settlement processes need to be timely and reliable. While interest rates are important, being able to deliver the solution to a client when they need it is imperative.

Q. What are your forecasts for the asset finance space?

While subdued from past levels, it continues to grow. Business confidence in the last few months is improving, albeit lower than historical levels.

There are a lot of large projects in train or being scoped involving the changes to renewable energy from current fossil fuel-based energy. We will see a vast investment in infrastructure in this industry in coming years.

The consumer segment is vulnerable to interest rates and again, while these remain high, the longer-term outlook is for these to come back to lower levels, which we expect will increase demand for vehicles.

Current data shows a slowdown in new car sales; however, recent data indicates the used segment is improving.