Cashflow Finance reports 226% growth in equipment finance
Strong broker uptake of CML Group’s equipment finance offering has helped the lender build revenue from this stream by 538 per cent in the last finance year, its results showed.
Cashflow Finance, part of the CML Group, announced that it saw strong growth in its equipment finance division in FY19, which is distributed solely through the broker channel.
Having first launched in July 2017, the equipment finance division offers loans of between $20,000 and $500,000 – with a primary focus on secondhand transport and yellow goods.
Over its second year of business, the equipment finance division generated $27 million of receivables on $20 million of funds advanced, generating $3.4 million of revenue in the financial year 2019 – a 226 per cent increase on the prior year.
This equated to $1.6 million in earnings before interest, tax, depreciation and amortisation (EBITDA) for the group, a 538 per cent increase on the year before.
Speaking to Mortgage Business about the growth of the segment, CML Group CEO Daniel Riley commented: “In equipment finance, all of our business comes through broker.
“We employ experienced credit analysts to work directly with the brokers, which they like because they can get an immediate response and feedback for the clients.”
Mr Riley welcomed the uptake of the offering, noting that it was “starting from a lower base”, being only the first full financial year that it has been in market.
However, he added that brokers had welcomed the product offering and that CML Group would be looking to expand its broker relations in this market in the future.
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