The Asset Finance Exchange (AFX) is soaring, reflecting the broader momentum in Australia’s asset finance market.
The platform, which falls under Australian aggregator Loan Market Group's umbrella, has lodged approximately $80 million in settlements since it was formed a year ago.
Asset Finance Exchange general manager Jordan Mutton said the results were better than expected, thanks in part to the connection the platform offers, which links brokers and asset finance specialists.
“But it goes further than just a referral solution," Mutton said. "It acts as an avenue to gauge whether bringing asset finance ‘in-house’ for a mortgage brokerage is a viable solution, whether that be through a specialist asset finance broker or upskilling to write asset finance themselves.
"Referring via the Asset Finance Exchange is also a viable long-term solution, as it invariably acts as an extension of the referring brokerage’s business," he continued. "That’s the beauty of the AFX; it’s suitable for any brokerage, no matter what stage of the asset finance journey they’re at.”
The AFX works by connecting mortgage brokers with asset finance specialists through LMG’s proprietary referral technology, tapping into Australia’s fast-growing asset finance sector. Since its October 2024 inception, the platform settled more than 1,800 deals, with an average deal size of about $45,000.
Mutton added that more than 50% of brokers are considered active referrers, while approximately 75% have submitted more than one referral in the last year.
“There’s no greater gauge of broker sentiment than how brokers have engaged with the Asset Finance Exchange and the respective referral hubs," he said.
"Hitting $80 million in the first 12 months demonstrates that we’re on the right path."
Australia's loan markets are taking off, thanks in part to asset finance.
Once mainly used for vehicles and equipment, asset finance now allows businesses to tap into the value of their balance sheets to raise capital. By pledging assets as security, companies can access cash upfront to drive growth. As demand accelerates, asset finance is becoming a key driver of small-business expansion, property projects and new opportunities for brokers across Australia.
"The Australian asset finance market is thriving in 2025," Joanna Black, co-owner, director and asset finance broker at brokerage Quinntessential Finance, told Australian Broker.
The New South Wales-based broker said small businesses in many sectors are using asset finance to secure additional funds, without straining existing cash flow.
"With banks tightening lending, more small-and-medium-sized enterprises (SMEs) are turning to brokers for faster approvals," said Black, explaining that this is creating new opportunities and a way to increase revenues for brokers who can diversify.
"The market remains resilient and is increasingly shifting towards sustainable assets, such as EVs and solar technology," she said.
In fact, rising demand for electric vehicles and hybrids is just one example that is unlocking big potential for asset finance brokers. Consumer appetite for EVs and hybrids grew by roughly 50% in 2024, topping more than $6.17 billion in financing, according to a recent study by the Australian Finance Industry Association (AFIA).
Mutton added: "The broking industry continues to evolve, largely driven by increased consumer demand for alternative finance services from mortgage brokers, such as car finance, personal loans and business loans. Previously, options were limited for servicing these demands."
Black said asset finance brokers need to stay up to date on their knowledge around lender policies, asset types and compliance, as well as other industry trends.
'These factors directly affect loan approvals," she said. "Asset finance differs from other lending markets by focusing on the assets themselves, such as vehicles or equipment, as collateral or the basis for finance. This is opposed to other forms of lending that rely mainly on personal creditworthiness or business cash flow. Normally approvals for asset finance are much faster than other forms of lending, such as mortgages."
