The End of the Financial Year is on the horizon, and that means extra opportunities for those working the in the asset finance space.
Brokers usually work overtime in June as commercial clients seek to get deals over the line before the trading period ends, so Australian Broker got in touch with Lend.com.au, the fintech commercial lender, to discuss the state of the asset finance market at this crucial time of year for commercial brokers.
“There are a number of factors that are driving the assets finance space at this time of year,” said Andrew Moulds, Head of Asset Finance at Lend. “We’ve got instant asset write-off that is encouraging businesses to purchase equipment, particularly at the end of the financial year.”
“There’s really strong business confidence at the moment so demand for asset is high and very strong in the motor vehicle space. There’s also quite a few supply issues that continue to affect the new vehicle market, which is having a knock on into used cars, and we’re seeing strong demand with private sale market as well.”
“The overall demand for wheeled equipment is having an impact on driving up valuations, so it’s an important consideration for brokers when they’re structuring deals for their clients that they don’t just think of the price now but also the price in the future.”
Vehicle finance is at the forefront, but there is growth to be found across the asset finance space.
“I think, at an industry level, we’ve got building and construction continuing to fuel demand, particularly from traditional trades like building, electrical and plumbing,” said Moulds. “Finance insurance and travel logistics are the other industries that are showing strong demand as COVID conditions ease.”
“On top of that, we’ve got a lot of offers coming into the market from lenders. You’re getting some great rate specials for the end of the financial year, and some additional eligibility for borrowers due to changes in lender policy.”