Inside Morgil's 'wonderful world of asset finance'

What opportunities exist for brokers to diversify?

Inside Morgil's 'wonderful world of asset finance'


By Ryan Johnson

From X-ray machines and beauty salon lasers to golf carts, luxury cars and anything in between, Teoman Morgil’s world allows him to finance the weird and wonderful.

“We pride ourselves on offering finance for a wide range of items, pretty much everything,” said Morgil (pictured below centre left), partner at asset finance brokerage Pure Capital.

Morgil’s latest adventure involved financing a NavVis VVLX (pictured above) for one of his long-term surveyor clients. The wearable state-of-the-art technology enables mapping at a speed 10 times faster than standard surveying equipment. 

Comparisons to the mortgage market

While the broker share for residential home loans continues to hover around 70%, there has been a decline in demand.

According to the MFAA's Industry Intelligence Service 15th Edition report, the total number of home loan applications lodged has decreased for the second consecutive six-month period.

Between April and September 2022, over 382,000 home loan applications were lodged, reflecting a 6.75% year-on-year decline.

In Morgil’s world, the asset finance market “remains robust”, showing no signs of slowing down despite rising interest rates.

“Whether it's a small business seeking their first van, larger companies expanding their fleet, or individuals purchasing their dream car, the demand for asset finance continues to thrive,” Morgil said.

Image of a 2021 McLaren 720s Performance – capable of speeds of 340 km/h. Morgil financed the vehicle via a 5-year facility with a 40% balloon.

Morgil puts the demand down to the fact that the asset finance market is “highly competitive”, encompassing various players such as banks, non-bank lenders, leasing companies and private funds.

“The diverse landscape ensures that individuals and businesses have access to funds regardless of their unique circumstances,” Morgil said.

Technology also has a role to play, according to the award-winning asset finance broker.

“With a few clicks online one can obtain a preliminary estate and if unsatisfied, explore numerous competitors and alternative options,” Morgil said. “Whether it's through chattel mortgages, leases, consumer loans or hire purchase, individuals can navigate different paths to find the financing solution that suits their needs best.”

A rewarding job

As a former home loan broker, Morgil finds the same sense of fulfillment in financing assets for customers as he did with financing homes.

One example was when the Pure Capital team encountered a client who aspired to venture into the logistics industry but faced a significant hurdle –  tarnished credit score resulting from past mistakes.

 Despite hearing countless rejections from other lenders, Morgil took them on.

“We adopted a comprehensive approach, taking the time to thoroughly assess their situation. As a result, we successfully secured approval for their first truck. Remarkably, they have since expanded their operations and now boast a fleet of 10 trucks actively serving the industry,” Morgil said.

“Watching a client grow and their business flourish has to be one of my favourite aspects of this job.”

A 2005 Kenworth Aerodyne Prime Mover financed by Morgil over a five-year term with nil residual – the client’s 16th asset financed through Pure Capital.

Opportunity for mortgage brokers

Among the other insights in the latest MFAA IIS report is that diversification of mortgage broking businesses into commercial lending continues to accelerate, with more than 6,000 mortgage brokers now operating in this part of the market, representing a new record.

Morgil said there was an “undeniable opportunity” for mortgage brokers to expand their services into the asset finance space and handle both mortgages and asset finance.

However, based on his experience in both industries, Morgil said he had come to appreciate the limitations of time and the importance of providing clients with the utmost attention and expertise. 

“It is often more effective to specialise in one area and establish partnerships with reputable asset finance companies. This allows brokers to focus their efforts on mastering the intricacies of their chosen field, ensuring that they can provide clients with comprehensive and tailored solution,” Morgil said.

His team has already established “strong partnerships with numerous mortgage brokers” who specialise in the housing and mortgage sector.

“By collaborating with asset finance specialists, brokers can tap into their expertise and industry knowledge, offering clients a seamless and holistic approach to their financial needs,” Morgil said.

What’s the most interesting thing you’ve financed? Share your comments below or contact Australian Broker.

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