— Seize the Opportunity with Boa & Co. by Your Side
In recent years, Australia’s property and loan markets have continued to expand, with asset finance playing an increasingly important role.
Traditionally used for purchasing vehicles and equipment, asset finance has evolved into a flexible funding tool where businesses leverage their existing assets to secure upfront cash. For small and medium-sized businesses, asset finance is becoming critical for scaling operations, facilitating property transactions, and driving development projects. It’s also creating new opportunities for finance brokers nationwide.
Why Is Asset Finance Growing Rapidly?
According to Chris Paterson, General Manager of Distribution at non-bank lender Resimac, the industry is encouraging brokers to diversify their services. “Brokers are looking for ways to provide a complete suite of products to their clients,” he explained, “and asset finance is a key part of that strategy.”
Beyond diversification, several factors are fueling the growth of asset finance:
- Rising demand for liquidity, vehicles, and equipment
- Government policies like instant asset write-offs, encouraging tradies to invest in tools and equipment
- Tighter lending standards at traditional banks
- An increase in self-employed business owners and a thriving construction sector needing better cash flow management
Adam Brown, Broker Distribution Executive at National Australia Bank (NAB), noted that businesses often prefer to preserve capital for investments rather than tie up large amounts in physical assets like trucks, tractors, or equipment. In a high-interest environment, managing cash flow smartly through asset finance is becoming a crucial strategy.
Brokers and Asset Finance: A Growing Partnership
George Dib, Co-Founder and CEO of Co-Pilot Finance & Insurance, highlighted that many brokerage firms are bringing asset finance services in-house after seeing strong conversion rates from referral partners. “Brokers realize they can better serve and retain clients by offering asset finance solutions directly,” he said.
At the same time, large mortgage aggregators are heavily investing in training and resources for asset finance, ensuring brokers can deliver a true one-stop-shop experience for their clients.
SMEs Driving Demand in Property-Related Asset Finance
In industries such as hospitality, healthcare, and manufacturing, businesses often require specialized equipment tied closely to their premises. Loans for fixtures, machinery, and other installations are surging as companies look for flexible ways to upgrade or expand.
Commonwealth Bank (CBA) reported that during its 2024 fiscal year:
- Vehicle and equipment financing rose by 15%
- Financing for shelving and furniture fittings increased by 25%
The property-related asset finance market is also opening new client segments, such as SMEs investing in specialized commercial properties or upgrading their business locations.
Why Now Is the Perfect Time to Focus on Asset Finance
Julian Fayad, Founder and CEO of LoanOptions.AI, emphasized the efficiency of asset finance: “A personal loan can settle in 24 hours, while a residential home loan takes months,” he said. Asset finance allows brokers to deliver faster results and optimize their income per hour spent.
To capitalize on this growing market, brokers must:
- Understand asset valuation and depreciation
- Be familiar with lender policies and quick turnaround requirements
- Stay compliant with asset finance regulations
- Build relationships with specialist lenders, especially those financing green assets like solar panels
- Offer tailored funding solutions based on client needs and asset types
Chris Wyke, Co-Founder of MA Financial, advised that brokers need to be very clear on turnaround times and lending policies to ensure client satisfaction.
Boa & Co. — Your Trusted Partner in Asset Finance and Tax Advisory
In today’s evolving market, asset finance is not just a growth tool for businesses — it’s a critical part of smarter financial management. Whether you’re planning to expand operations, invest in specialized equipment, or simply improve cash flow, Boa & Co. Chartered Accountants can tailor a financial strategy that’s right for you.
To find out how we can help your business grow through smart finance and expert tax solutions, contact us today:
Phone: 1300 952 286
Email: [email protected]
Website: www.boanco.com.au
Let’s build your financial future together!