Last month’s NACFB Expo was a roaring success, with
record numbers attending. Also impressive was the number of
mortgage and ID brokers looking to enter the market. Fred Crawley
reports.
Go deeper with GlobalData
The National Association of
Commercial Finance Brokers (NACFB)’s inaugural Commercial Finance
Expo, held last month at Birmingham’s NEC, saw an unprecedented
level of attendance and interest. It soon became apparent that
asset and motor finance are sectors to keep an eye on in 2010 and
beyond.
Brokers and lenders from all
corners of the commercial finance industry are taking an active
interest in leasing this year, it would seem, with many brokers
active primarily in invoice finance, mortgages and bridging finance
talking to the representatives of asset finance houses with an eye
to doing business.
For many, asset finance was not an
unfamiliar product, but one that would only be tackled when a
customer looking for another type of finance made the request.
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By GlobalDataKeen to get
involved
Michael O’Hara, director of O’Hara
Financial Services, was one such delegate – a mortgage broker keen
to get involved in asset finance after many years spent away from
the sector.
O’Hara said he regularly receives
asset finance requests from mortgage clients, and in the past had
to pass these on to associates in asset finance. Now, however, he
is keen to get involved in these deals for himself, and was at the
Expo to get a feel for the current funding climate.
The experiences of Asset Finance
Solutions, the only lease broker to exhibit at the show, also spoke
well of prospects for introducers. Director Mike Geddes said that,
not only had he spoken to potential franchisees from AFS’ sales
network, but to funders he had not dealt with before.
“Hopefully, we will see new funding
lines as a result,” Geddes said. “Having not known what to expect
at first, we were pleasantly surprised, and will attend next year
as well.”
Lessors exhibiting at the show
reflected the optimism of the brokers.
David Parsons, sales manager at
niche lessor Liberty Leasing, called the Expo “one of the best
shows we have seen”.
Parsons added: “We received a lot
of cards, and we have already had several meetings on the back of
the show – I hope we can expect a substantial amount of new
business as a result. There was also a lot of interest from
property finance brokers looking into the leasing field, and
hopefully the funders will be there to nurture them.”
Meanwhile, ever-reliable broker
market leader ING Lease saw an extremely busy stand during the
day.
Senior sales manager Graham Lines
said: “As a patron of the NACFB we were pleased to attend the Expo
last week and demonstrate our support for the work the NACFB
carries out for the commercial finance industry.
“We were very busy during the day
and it was great to see many of our current brokers and have the
opportunity to meet potential new customers. Overall, by providing
a forum for members to meet, socialise and explore new
opportunities, the Expo worked really well to fulfil the needs of
all its visitors. We look forward to attending again next
year.”
In addition to providing the
environment for non-leasing brokers to learn more about getting
involved in asset finance, however, the reverse was also true. Many
lease brokers took the opportunity to discuss other forms of
commercial finance with providers.
Barclays Corporate, for example,
was understood to be discussing its invoice finance offerings with
asset finance brokers, despite its asset and sales finance arm
being currently closed to asset finance introductions from
brokers.
Overall, the overwhelming message
that emerged from the Expo was the potential benefit to be found in
closer collaboration between different types of commercial
lending.
State Securities, for example, a
business that already provides invoice finance in addition to its
core leasing business, was astonished by the level of interest in
its property offering, recently launched by resident expert Graham
Jacobs.
Illustrative of the enthusiasm for
combined lending could be seen at the stall of new bank Aldermore.
The bank, which recently posted excellent profits after just one
year of lending in property, invoice and asset finance, was swamped
with introducers of every kind throughout the day.
Grow asset
finance
Nevertheless, event organiser Nikki
Cann said raising the priority of leasing was still high on the
association’s list of priorities.
“We really would like to grow the
asset finance side of the show,” Cann said.
“Obviously people are going to be a
bit tentative for a new venture but, even though it was the first
time the show had been run, the level of support we received from
both exhibitors and delegates went way beyond our expectations.
“We are looking to make this an annual event and it would be
wonderful for 2011 if more lessors were to take the plunge and
exhibit next year as there are hundreds of brokers very keen to
find out what they have to offer. Asset finance and invoice finance
are two areas of the show which we would be very keen to develop
further.”
