Resources projects should deliver a boom in commercial and equipment finance to brokers, it has been claimed.
MFAA CEO Phil Naylor has predicted that brokers in resources rich states are set to see a surge in equipment and commercial finance. Naylor said growth in personal and home loan inquiries in NT and WA could foreshadow an influx of commercial and equipment deals as major resources projects get underway.
Naylor cited the recent Veda Quarterly Credit Demand Index. The index showed NT and WA with strong growth in personal loan demand - up 14.3% and 13%, respectively - as well as leading the country in mortgage enquiries growth, with NT up 12.6% and WA up 11.1%. He said lower interest rates should "provide a boost" to commercial brokers in the months ahead.
In spite of the predicted influx of demand, Naylor said many consumers were unaware of the role of commercial brokers.
"There are many examples of where our members have delivered very large savings for commercial customers when negotiating the financing of equipment through both lease and purchase. It is challenge to communicate the fact that our 2,500 [equipment and finance broker] members can deliver great savings for commercial clients," he said.