Newly-listed aggregator AFG has become the first mortgage aggregator to partner with an online-only business lender.
After six months of negotiation, AFG has entered a deal with fintech company Prospa
– a web-based small business lender – to include them on their panel of lenders servicing their network of over 2,000 brokers, according to a report
in the Australian Financial Review
Prospa co-chief executive, Beau Bertoli
told the AFR
that the online lender will now be integrated into AFG’s broker portal, allowing brokers to apply for a loan directly with them on behalf of their customers.
“It is the first online business loan product to be made available throughout a broker network,” Bertoli said.
“AFG creates a portal for their partners to log in. They can see all the information on their products and submit an application through the AFG portal.”
Whilst Bertoli would not reveal whether brokers would be remunerated through a commission structure, he did say the deal was mutually beneficial for both Prospa and AFG.
AFG told the AFR
that its new partnership with Prospa would help the aggregator grow its business lending and offer its brokers more flexibility, more options and access to new technology.
“The market is demanding faster, simpler ways of funding small-medium business,” AFG general manager of sales and operations, Mark Hewitt
“With our listing on the ASX in May this year, we are in a strong position to build on the strengths of our core mortgage broking business and to expand our product offering.”
According to the AFR
, Prospa was locally founded, but backed by US company Strategic Funding Source and British private equity financiers.