ANZ Commercial Broker

Transcription

1 ANZ Commercial Broker Introduction to Asset Finance Offline 2016 Restricted

2 Size of the car market 1.1m New 80% are financed 2.2m Used 3.3m Credit Card Asset Finance Home Loan 2.6m cars 2

3 Your agenda for today What is Asset Finance? Importance for your business Security & Servicing Offline Facility Types Chattel Mortgage Lease Offer to Hire Consumer Asset Finance at ANZ Broker Cars Other Goods Offline offerings Quoting Rate Sheet Calculator Commission ANZ Broker Process Accreditation Submitting a deal Process expectations Workshops Consumer Car Truck 3

4 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

5 Restricted What is Asset Finance (AF)?

6 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

7 Why consider Asset Finance? Be a one stop shop Diversify your business Generate new income Protect your client base 7

8 Key Differences Assessing Asset Finance key differences Home Loans Asset Finance Capacity (Ability to Repay) Use past Income for servicing i.e. PAYG minimum 3 months Self Employed minimum 2 years Full tax returns required if LVR > 60% Take into account past and projected income for servicing. i.e. Cash flow forecasts. Collateral (Security) Restricted to maximum 95% LVR (if existing lending with ANZ) Inclusive of LMI costs Restricted to residential property Security over asset being acquired Character (Willingness to Repay) Credit history check Account conduct and relationship with bank Length of time in current employment and address. Similar criteria as for home loans CRAA defaults can be considered at assessment if small and paid within reasonable period of time. Capital (Customer Contribution) Amount of deposit and source of funds Strength of assets versus liabilities in the SP]a Similar, industry/management experience, business plan 8 8

9 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

10 Facility types

11 Asset finance lending facilities Chattel Mortgage Lease Consumer Offer to Hire Registered charge over a particular item Borrower owns the goods Fixed term loan ANZ owns the goods Borrower has quiet possession usage but doesn t own Residual values are in terms with the ATO guidelines PAYG only Goods for private use Usually motor vehicles and lifestyle ANZ owns the goods Borrower has quiet possession use but not owns Borrower must be registered for GST Preserves working capital Customer can claim the rental as a tax deduction Guided by National Credit Code Customer can claim GST on the terms charges (i.e. interest) ANZ Specifics: Commercial facility ABN holder Term up to 60 months ANZ Specifics: Commercial facility except for novated lease ABN Holder Term up to 60 months ANZ Specifics: Terms up to 84 months ANZ Specifics: Commercial facility ABN holder Term up to 60 months 11

12 How do we differentiate AF at ANZ? Cars Trucks, Trailers & Other Goods LTV = Loan to value ratio New Car: Total Amount Financed Book Value (glasses guide) Market assessment Used Car: Total Amount Financed Trade Price (glasses guide) 12

13 Offline Asset Finance Offerings

14 Quick wins - Cars: Self Declaration up to $75k 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 Luxury (Consumer & Commercial) 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 Professional Pack 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 Easy Upgrade Finance Use for replacing goods, refinances, residuals/balloons Self declaration up to $150k Paid out within 6months and same lending entity 14

15 Quick wins - Trucks, Machinery & Other Goods: Easy upgrade finance Lo-Doc < $500k Professional pack 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 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 $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

16 How to quote with Offline

17 2 ways to quote with Offline Calculator Sent with rate sheets monthly Broker Support

18 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

19 Rates: Cars 19

20 Calculator: Cars (not inclusive of $770 BOF) 20

21 Rates: Other Goods & Trucks 21

22 Calculator: Other Goods & Trucks 22

23 Broker support quote request the request to: 23

24 Quoting for Cars

25 What will you earn in commission? (refer handouts x 2: automotive rates and calculator) Additional Info: $35k New 2016 Toyota Camry Property owner mortgage All standard fees to be financed Broker wishes to earn additional $770 Interest Rate 7% Broker Commission $2790 LTV 103% Standard Fees & Charges: $ PPSR 6.80 Admin fee (ANZ) 5.00 Establishment fee (ANZ) $ Discretionary Fee: $ Broker Origination fee (BOF) Up to $770 [must be disclosed to the customer and added to the amount financed] Total Amount Required $ New Car 35, Standard fees & charges Broker Origination fee TOTAL $36,

26 Interactive: Car Calculator 26

27 Everything else.but not cars (Trucks, Trailers & Other Goods)

28 What will you earn in commission? (refer handout: Asset Finance) Truck $85k Terms: - 60 months - 2 years old - Fees to be financed Commission $ Base rate 5.55% Customer rate 7.08% Monthly repayments (nil balloon) $ Standard Fees & Charges: $ PPSR 6.80 Establishment fee (ANZ) $ Total Amount Required $ 2yr old Truck 85,000 Standard fees & charges TOTAL $85,

29 Interactive: Other Goods & Truck calculator 29

30 Offline Process model for success

31 1: Get your accreditation sorted! Accreditation Commercial Asset Finance Issued with a TPMI Issued with 3 x SOB s Business banker Submit the deal directly 31

32 2: Offline Asset Finance accreditation SOB = Source Of Business number This is how we identify you and direct the deal to appropriate area 1: AP Motor Vehicles SOB: A 2: All Other Equipment SOB: A 3: EUF Replacement Goods SOB: A 32

33 3: Monthly Interest Rates Writing Plans 33

34 4: Familiarise yourself with Offline Offerings Self Declared (Lo-Doc) Cars Other Goods, Trucks, Machinery Up to $75k Easy Upgrade Luxury Up to $500k Professional Pack Professional Pack Easy Upgrade 34

35 5: Submit deal for ANZ to input Consumer Commercial Application form Signed privacy form 2 payslips Quote Invoice if available Application form Signed privacy form 2015 financials Quote Invoice if available Trust Deed 35

36 6: How long to wait? initial requirements / application ANZ input deal Credit Assessment Approval Outcome hours

37 7: Approval Documentation request Approval valid for 30 days Meet approval conditions CIP Suppliers Invoice Tax Invoice: Commission Invoice BOF Invoice (must be financed & maximum $770) 37

38 8: Documentation Up to 24 hours (from receiving the initial doc request) 38

39 9: Settlement in: signed loan documents and any outstanding approval conditions 2 x s are mandatory: EsandaSettlements@anz.com and, ANZCommercialBroker@anz.com Same day if documents are received prior to 2pm (Melbourne) Next working day if documents are received after 2pm (Melbourne) Happy Customer and Commission Paid 39

40 Putting this into practice! Lets get some more income for you

41 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 42

43 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 44

45 Steps to follow 1. 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. all documents to: 5. You will receive an automatic advising that someone will be in contact within 24 hours. The subsequent will confirm that the deal has been input & submitted to credit 6. Once the deal has been approved, you will receive an confirming approval conditions/next steps 7. Submit a document request and forward any further information as requested 8. Submit to Settlements team (2 x s are mandatory): EsandaSettlements@anz.com ANZCommercialBroker@anz.com - signed and dated loan docs - outstanding approval conditions, provide current quote - suppliers invoice, commission invoice and suppliers banking details 45

46 Next Steps

47 Uncovering opportunities from your self employed customers 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? 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? 47 47

48 THANK YOU ANZ Commercial Broker QLD/NT are here to support you