Small business lender Capify has launched a new product that offers brokers unique access to wholesale rates and gives them the opportunity to set their own prices for clients.
The new offering is designed for the commercial broker channel and will allow brokers to extensive control over the rates that they offer their clients.
“What we're doing is take our wholesale rate that we obtain from our facility and pass on the low cost of funds to the broker,” Stjepan Puljic, Head of Business Development & Partnerships at Capify.
“Normally what would happen when a broker brings a finance deal to any sort of finance company is that they have their cost of funds, their mark up and any other expenses that they want to put into their rate in order to make a profit and recoup those funds.”
“What we're doing is essentially passing on our wholesale rate and, depending the risk category of the customer, the broker will have a little table that they can see and then pass a particular rate onto the customer.”
Capify were founded in 2008 and announced a huge cash injection from Goldman Sachs at the beginning of 2019, which gave when $135 million in available credit to lend onto their customers.
They currently offer credit ranging from $5,000 to $300,000, giving plenty of flexibility to brokers looking to use their services and this new product.
“Where this has a big effect is that it allows the broker to set a rate for the customer, and also set what commissions they earn,” added Puljic. “Rather than having a black or white, yes or no scenario, they can dictate almost everything from start to finish.”
“Where the lender would ultimately do that traditionally, we're allowing the broker or the person that the customer is talking to tailor each individual loan to them. Whether they're looking for long term or short term or best rate, the broker will be able to have that conversation and give them more control over the deal.”