Fintech rolls out equipment finance

by Madison Utley03 Apr 2019

An SME lender, which has itself recently diversified into new markets, is encouraging mortgage brokers to do the same – and is offering the tools and support to aid them in the process.  

OnDeck Australia expanded into equipment finance with a soft launch in late 2018. The move followed a noted rise in capital expenditure among Australian businesses, much of it to buy equipment.

Considering recent industry events, which have revealed the “perils of relying on a single revenue stream,” OnDeck has urged mortgage brokers to help meet the needs of the 25% of SMEs that plan to seek additional business financing in the next 12 months.

Head of sales Michael Burke said, “There is clearly strong demand for SME finance, making this a revenue channel that brokers cannot afford to overlook.

“OnDeck works closely with brokers during the first steps in the journey, providing training and sharing best practice. If the broker prefers, an OnDeck BDM can speak with customers directly on the broker’s behalf, though at all times the relationship belongs to the broker.”

OnDeck also provides a portal that gives brokers access to marketing tools, such as ‘send ready’ designs with the brokerage’s logo and brand colours.

Data collected by the SME lender suggests that one in four of a mortgage broker’s existing home loan clients are also business owners, “providing a ready base for brokers to market their services in the SME lending space.”

In order to provide additional education and support for new revenue channels, OnDeck is running equipment finance information sessions for brokers in Melbourne and Sydney this month, hosted by CEO Noah Breslow.

Breslow will also be a keynote speaker for the AltFi Australasia Summit 2019 in Sydney, on 15 April.