Asset leasing firm enters broker channel

by Phil McCarroll23 Sep 2016
Major asset leasing firm Alleasing has announced it is entering the broker channel in an effort to make life easier for businesses currently struggling to secure asset finance.

Alleasing announced the launch of its new intermediary division yesterday, which it says will allow brokers to offer bespoke funding solution to clients who require assets that traditional lenders are becoming reluctant to finance.

“We’re really excited about working with brokers across Australia. We think it’s a huge dark spot we can add some value to,” David Onto, who will lead the new division, told Australian Broker.

“From what we’re hearing and seeing in the market there’s no doubt that liquidity is at a premium and a lot of the major funders are stepping back from some of the assets in the market place,” Onto said.

Alleasing offers leasing solutions for assets across industries such as healthcare, fishing, agriculture and mining, and Onto believes a combination of factors such as lenders needing to hold more capital and focussing on return on equity has led to situation where many businesses can’t acquire necessary assets.

“It’s disappointing for the SMEs through to the mid-corporates particularly given how well the economy’s going. We’re talking about the bespoke assets that have little or no secondary value, but they’re assets that are critical to business performance and the overall performance of the economy,” Onto told Australian Broker.

“We do some work with a major fishery and we’ve lent against things like nets, barges and cleaning robots for the nets. In that situation by reducing the death rate of fish from seals and bacteria, we’ve dropped nearly $3m straight to the bottom line of that particular company.”

Onto said the intermediary division had been developed over the past six months and he believes Alleasing knowledge and experience in the world of asset finance means it will be able to offer brokers strong support through the entire transaction.

“I think we offer something new and unique through our funding relationships and our dedicated support for brokers,” he told Australian Broker.

“We believe our asset management capability and our ability to value those assets is market leading.”

Daniel Blizzard, Alleasing chief executive officer, said the new division opens an “untapped opportunity” for the company.

“We’ve identified significant untapped opportunity to provide innovative and flexible capital products to brokers, allowing their clients to unlock capital and grow their business,” he said.

“I look forward to watching our new channel grow over the coming months.”