ANZ Commercial Broker - · PDF fileprojected income for servicing. ... •PAYG >12 months...

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ANZ Commercial Broker “Introduction to Asset Finance – Offline” 2016 Restricted

Transcript of ANZ Commercial Broker - · PDF fileprojected income for servicing. ... •PAYG >12 months...

Page 1: ANZ Commercial Broker - · PDF fileprojected income for servicing. ... •PAYG >12 months and must provide payslips; ... •On their balance sheet –can you see any liability to another

ANZ Commercial Broker

“Introduction to Asset Finance – Offline”

2016

Restricted

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Size of the car market…

1.1m

New

2.2m

Used

2.6m cars

2

3.3m

80% are financed

Credit CardAsset FinanceHome Loan

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Your agenda for today

What is Asset Finance?

Importance for your business

Security & Servicing

“Offline”

Facility TypesChattel

MortgageLease Offer to Hire Consumer

Asset Finance at ANZ Broker

Cars Other Goods“Offline” offerings

Quoting Rate Sheet Calculator Commission

ANZ Broker Process

AccreditationSubmitting a

dealProcess

expectations

WorkshopsConsumer

CarTruck

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Question….

What portion of your existing client base is

self-employed?

Did you help your last client purchase their car?

Does your client base include those in transport, earthmoving, manufacturing & tradies?

How many PAYG clients have you recently asked when they intend to upgrade their car?

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What is Asset Finance (AF)?

Restricted

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What is Asset Finance?

Funding of goods, cars and chattels,

up to 100% of the purchase price,

using the goods as sole security.

It involves paying a regular payment for a fixed period of time.

An ability for clients to purchase assets, to help their business generate future income

and cash flow.6

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Why consider Asset Finance?

Be a “one stop shop”

Diversify your business

Generate new income

Protect your client base

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Assessing Asset Finance– key differences

Key D

iffe

ren

ces

• Use past Income for servicing i.e. PAYG minimum 3 months

• Self Employed minimum 2 years

• Full tax returns required if LVR > 60%

• Restricted to maximum 95% LVR (if existing lending with ANZ)

• Inclusive of LMI costs

• Restricted to residential property

• Credit history check

• Account conduct and relationship with bank

• Length of time in current employment and address.

• Amount of deposit and source of funds

• Strength of assets versus liabilities in the SP]a

Home Loans Asset Finance

• Take into account past and projected income for servicing. i.e. Cash flow forecasts.

• Security over asset being acquired

• Similar criteria as for home loans – CRAA defaults can be considered at assessment if small and paid within reasonable period of time.

• Similar, industry/management experience, business plan

Capacity (Ability to Repay)

Collateral (Security)

Character (Willingness to

Repay)

Capital (Customer

Contribution)

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Asset Finance with ANZ Commercial Broker

“Offline”

An exclusive offering to submit AF deals to ANZ with no volume hurdle

Ability to offer your clients a 30 day pre-approval

Paper based lodgement process (for now!)

ANZ will input the deal for credit decisioning

You manage the entire process

Commission is processed on settlement

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Facility types

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Asset finance lending facilities

Chattel

Mortgage

Registered charge over a particular

item

Borrower owns the goods

Fixed term loan

Preserves working capital

ANZ Specifics:

•Commercial facility

•ABN holder

•Term up to 60 months

Lease

ANZ owns the goods

Borrower has quiet possession – usage

but doesn’t own

Residual values are in terms with the ATO guidelines

Customer can claim the rental as a tax

deduction

ANZ Specifics:

•Commercial facility except for novated lease

•ABN Holder

•Term up to 60 months

Consumer

PAYG only

Goods for private use

Usually motor vehicles and lifestyle

Guided by National Credit Code

ANZ Specifics:

•Terms up to 84 months

Offer to Hire

ANZ owns the goods

Borrower has quiet possession – use but not

owns

Borrower must be registered for GST

Customer can claim GST on the terms charges

(i.e. interest)

ANZ Specifics:

•Commercial facility

•ABN holder

•Term up to 60 months

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How do we differentiate AF at ANZ?

LTV =

Loan to value ratio

•New Car:

•Used Car:

Cars

Market assessment

Trucks, Trailers & Other Goods

Total Amount FinancedBook Value (glasses guide)

Total Amount FinancedTrade Price (glasses guide)

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“Offline”Asset Finance Offerings

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Quick wins - Cars:

• ABN in place for 12 months

• Customer must be a home owner / mortgagor or, 20% deposit to make the LTV <100% or, confirmable current A Class credit

• No financials

Self Declaration up to $75k

•Home owners

•$60k - $150k self declaration

•Audi, BMW, Jaguar, Range Rover, Mercedes, Volvo, VW, Porsche

•LTV not to exceed 120%

•PAYG >12 months and must provide payslips; ABN >12months

Luxury

(Consumer & Commercial)

• Up to $150k self declaration

• Dr’s, surgeons, pharmacists, dentists, engineers, accountants, judge, lawyer, optometrist, vet, surveyors, physio, chiropractor, architect,

• Been in practice for minimum 3 years

Professional Pack

• Use for replacing goods, refinances, residuals/balloons

• Self declaration up to $150k

• Paid out within 6months and same lending entityEasy Upgrade Finance

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Quick wins - Trucks, Machinery & Other Goods:

Easy upgrade finance

• Self dec to $500k

• Replacement, refinance, residuals/balloons

• Must be in same industry for minm 2yrs

• Age of goods 12years at end of term

• Goods must be like-for-like industry related

• Contract being replaced must have been finalised < 6 months

• Repayments within 25%

• No private sales

Lo-Doc < $500k

• ABN for 3 years

• Must be asset backed / mortgage

• Age of goods to be no more than8 years at end of term

• No private sales

Professional pack

• $100k Plant & Equipment

• Been in practice for minimum 3 yrs

• Eligible professions include Dr/Surgeon, pharmacist, barrister, vet, lawyer, optometrist, dentist, judge, accountant, physio, chiropractor, architect, engineer, surveyor

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How to quote with “Offline”

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2 ways to quote with “Offline”

Calculator • Sent with rate sheets

monthly

Broker Support• 1300 385269

[email protected]

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2 Rate sheets are issued monthly

(refer 2 x rate handouts and 2 x printed snapshot of calculator)

Cars

•You can charge a BOF (broker origination fee)

•Maximum age of car is 12 years

Trucks, Trailers &

Other Goods

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Rates: Cars

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Calculator: Cars

(not inclusive of $770 BOF)

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Rates: Other Goods & Trucks

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Calculator: Other Goods & Trucks

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Broker support – quote request

Email the request to: [email protected]

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Quoting for Cars

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What will you earn in commission?

(refer handouts x 2: automotive rates and calculator)

$35k

New 2016 Toyota Camry

Additional Info:

•Property owner mortgage

•All standard fees to be

financed

•Broker wishes to earn

additional $770

•LTV 103%

Interest Rate

7%

Broker Commission

$2790

Total Amount Required $

New Car 35,000.00

Standard fees & charges 361.80

Broker Origination fee 770.00

TOTAL $36,131.80

Standard Fees & Charges: $

PPSR 6.80

Admin fee (ANZ) 5.00

Establishment fee (ANZ) 350.00

$361.80

Discretionary Fee: $

Broker Origination fee (BOF)[must be disclosed to the customer and

added to the amount financed]

Up to $770

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Interactive: Car Calculator

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Everything else….but not cars

(Trucks, Trailers & Other Goods)

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What will you earn in commission?

(refer handout: Asset Finance)

Total Amount Required $

2yr old Truck 85,000

Standard fees & charges 381.80

TOTAL $85,381.80

Standard Fees & Charges: $

PPSR 6.80

Establishment fee (ANZ) 375.00

$381.80

Truck

$85k

Terms:

- 60 months

- 2 years old

- Fees to be financed

Commission

$3415.27

Base rate

• 5.55%

Customer rate

• 7.08%

Monthly repayments (nil balloon)

• $1693.72

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Interactive: Other Goods & Truck calculator

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“Offline”

Process model for success

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1: Get your accreditation sorted!

Accreditation

Commercial

Issued with a TPMI

Business banker

Asset Finance

Issued with 3 x SOB’s

Submit the deal directly

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2: ‘Offline’ Asset Finance accreditation

1: AP – Motor Vehicles

• SOB: 4870 00001A

2: All Other Equipment

• SOB: 4870 00002A

3: EUF – Replacement Goods

• SOB: 4870 00003A

SOB = Source Of Business numberThis is how we identify you and direct the deal to appropriate area

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3: Monthly Interest Rates – Writing Plans

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4: Familiarise yourself with “Offline Offerings”

Self Declared

(Lo-Doc)

Cars

Up to $75k

Luxury

Professional Pack

Easy Upgrade

Other Goods, Trucks, Machinery

Easy Upgrade

Up to $500k

Professional Pack

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5: Submit deal for ANZ to input

Consumer

Application form

Signed privacy form

2 payslips

Quote

Invoice if available

Commercial

Application form

Signed privacy form

2015 financials

Quote

Invoice if available

Trust Deed

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6: How long to wait?

Email initial requirements /

application

ANZ input deal

Credit Assessment

Approval Outcome

12 – 48 hours

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7: Approval

Approval valid for 30

days

Meet approval

conditions

Documentation request

CIP

Tax Invoice:

Suppliers Invoice

Commission Invoice

BOF Invoice

(must be financed & maximum $770)

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8: Documentation

Up to 24 hours

(from receiving the initial doc request)

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9: Settlement

Happy Customer and Commission Paid

Next working day if documents are received after 2pm (Melbourne)

Same day if documents are received prior to 2pm (Melbourne)

2 x emails are mandatory: [email protected] and, [email protected]

Email in: signed loan documents and any outstanding approval conditions

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Putting this into practice!

Lets get some more income for you

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Workshop 1: Consumer car

Mary and John Smith wish to buy a new A4 Audi for $70k.

You helped them upgrade to their new house in Brisbane 6 months ago.

Mary is a Teacher (for 12 years) on $75k

John is an ALDI store manager (for 10 years) on $110k

Assets Liabilities

31 Olive St, Brisbane 750,000 ANZ homeloan 185,000

Investment property 1

500,000 Investment homeloan

200,000

Mazda 3 car 9,000 Car loan 4,000

House & contents 55,000 Credit Card limit

15,000

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Interactive: Car Calculator

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Workshop 2: Truck

Billy Bob, director of Billy Bob Transport Pty Ltd, wishes to buy a new Kenworth K900 prime mover truck (no trailer). This is so he can take on a new, large contract with the local council. Purchase price is $330k

New contract will generate an additional $22k per month

He will employ an additional staff member. Currently has 5 trucks

2015 turnover for the business is $3.9m

2015 net profit is $780k

Sole director

Refer copy of Cash Flow forecast template for discussion of fish & chip shop- Always include future/projected income & expenses

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Interactive: Truck Calculator

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Steps to follow1. Check the rate sheet and work out what commission you want to earn on the deal

2. Is there an “offline offering product offering” to limit documentation required?

3. Obtain relevant documents off the client, refer “Initial Requirements”

4. Email all documents to: [email protected]

5. You will receive an automatic email advising that someone will be in contact within 24 hours. The subsequent email will confirm that the deal has been input & submitted to credit

6. Once the deal has been approved, you will receive an email confirming approval conditions/next steps

7. Submit a document request and forward any further information as requested

8. Submit to Settlements team (2 x emails are mandatory):

[email protected]

[email protected]

- signed and dated loan docs

- outstanding approval conditions, provide current quote

- suppliers invoice, commission invoice and suppliers banking details

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Next Steps

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Uncovering opportunities from your self employed customers

Hot Spots to look for:

• On their balance sheet – can you see any liability to another bank?

• From above, are they expanding and needing working capital to fund growth?

• Are they looking to upgrade plant & equipment or buy a new car?

• Are they new to business i.e. start up or taking on new contracts?

Ask them

Are you planning to upgrade or buy a new car / equipment / truck?

What are your plans for the business?

(purchasing premises or plant & equipment?)

Is there depreciation on the Profit & Loss?

Is the increase of the home loan for an asset finance purchase?

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THANK YOU

ANZ Commercial Broker QLD/NT are here to support you