June’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
in June 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 (AFS),
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 UK 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 lender, 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.”
