AFG has announced a new outsourced trail book marketplace for brokers through an arrangement with specialist cashflow lender and Mergers & Acquisitions advisory firm, TrailBlazer Finance.
The ongoing struggle for SME funding
A recent industry study* has shown one in four SMEs is unsuccessful in obtaining funding, with the majority being turned away by major banks.
And that’s a whole lot of cries for help that have fallen on deaf ears, particularly when you consider nearly 50% of Australian SMEs sought funding in the last 12 months as they struggled with the fallout from an economically tumultuous year.
Are you equipped to weather all seasons in 2021?
Congratulations – you survived the Covid-19 flash storm that engulfed 2020! But before the uncertainty and turbulence of 2020 dwindle into the recesses of our collective memory, stop to ask yourself what does the rest of 2021 hold for the mortgage and finance brokerage industry?
The aggregation group has appointed a specialist lender, TrailBlazer Finance, to its asset finance panel, making more products available to its broker members.
Australian Finance Group (AFG) has welcomed trail book lender TrailBlazer Finance to its asset finance lender panel.
The addition will provide AFG brokers and their white-collar clients with access to the lender’s funding products and advice, which is specifically created for those with recurring revenue streams, such as brokers, financial planners, accountants, real estate managers and other cash flow businesses.
The boutique financial service and niche lender, TrailBlazer Finance has just announced an innovative new product for clients looking to procure a loan to fund their businesses ongoing cashflow needs. Dubbed the “Multi-Redraw Facility”or “MRF”, this new financing option allows business clients to lock in a fixed rate, fixed term, facility for their business and then repeatedly come back for top-ups, to continually maximise the entire facility. Head of Sales and Business Development at TrailBlazer, Robert Seton, explained this innovative new redraw facility as being, “similar to having a come-and-go facility but with the unique feature of having the certainty of fixed interest rates.”
The product was designed for brokers or planners whose trail book (or recurring income) is stable or growing. Normally brokers or planners qualify for a loan but find that as they make principal repayments the amount they can borrow shrinks, providing less and less gearing over time. Now the borrower gets certainty (subject of course to ensuring serviceability) of both funding and rates, without the hassle of having to establish new terms, or vary their existing facility each time additional funds are required. This translates into faster turnaround time, with funds ordinarily provided within 96 hours of request. This simplified process is set to be a game-changer for those in need of funds for opportunistic purchases of other books or practices, or even emergency funds – whilst paying only a fraction of what some of the new breeds of peer-to peer-funders are charging. Unlike ordinary fixed-rate facilities, the MRF allow clients to quickly access finance at lower costs, thus ensuring security and accessibility for all in need.