ANZ Commercial Broker - · PDF fileprojected income for servicing. ... •PAYG >12 months...
48
ANZ Commercial Broker “Introduction to Asset Finance – Offline” 2016 Restricted
Transcript of ANZ Commercial Broker - · PDF fileprojected income for servicing. ... •PAYG >12 months...
ANZ Commercial Broker
“Introduction to Asset Finance – Offline”
2016
Restricted
Size of the car market…
1.1m
New
2.2m
Used
2.6m cars
2
3.3m
80% are financed
Credit CardAsset FinanceHome Loan
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
3
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?
4
What is Asset Finance (AF)?
Restricted
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
Why consider Asset Finance?
Be a “one stop shop”
Diversify your business
Generate new income
Protect your client base
7
8
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)
8
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
9
Facility types
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
11
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)
12
“Offline”Asset Finance Offerings
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
14
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
15
How to quote with “Offline”
2 ways to quote with “Offline”
Calculator • Sent with rate sheets
monthly
Broker Support• 1300 385269
17
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
18
Rates: Cars
19
Calculator: Cars
(not inclusive of $770 BOF)
20
Rates: Other Goods & Trucks
21
Calculator: Other Goods & Trucks
22
Quoting for Cars
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
25
26
Interactive: Car Calculator
Everything else….but not cars
(Trucks, Trailers & Other Goods)
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
28
29
Interactive: Other Goods & Truck calculator
“Offline”
Process model for success
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
31
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
32
3: Monthly Interest Rates – Writing Plans
33
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
34
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
35
6: How long to wait?
Email initial requirements /
application
ANZ input deal
Credit Assessment
Approval Outcome
12 – 48 hours
36
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)
37
8: Documentation
Up to 24 hours
(from receiving the initial doc request)
38
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
39
Putting this into practice!
Lets get some more income for you
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
41
42
Interactive: Car Calculator
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
43
44
Interactive: Truck Calculator
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):
- signed and dated loan docs
- outstanding approval conditions, provide current quote
- suppliers invoice, commission invoice and suppliers banking details
45
Next Steps
47
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?
47
THANK YOU
ANZ Commercial Broker QLD/NT are here to support you
