Choosing the right lending model for your business

FAST is a leading aggregator specialising in business and asset finance, supporting more than 1,300 finance brokers across Australia. FAST CEO Brendan Wright explains how accounting firms can add financing services to their business to build out a more holistic client offering.

Accountants and brokers, whilst conventionally separate professions, are increasingly recognising the many benefits that can come from working together.

For accountants, partnering with a lending specialist is an effective way to deliver a broader service offering to clients and build up a competitive advantage. For brokers, an accountant partnership can be an additional way to support clients.

Determining the best partners or licensing model is a key step in the process. Here we outline some of the most common approaches.

Option one: Strategic Alliance model

For smaller accounting firms or those who want to maintain their focus on accounting services, the simplest option is establishing a referral agreement or strategic alliance, where accountants help their clients get in touch with a loan specialist directly.

An accountant can forge more than one referral arrangement depending on their client base – for example using a commercial broker for small business clients or a residential broker for clients seeking to invest in property.

Option two: Partnership model

Accountants who are running mid-size firms often choose to engage a finance broker within their firm on a contractual basis to build out their in-house offering.

A partnership could be established in various ways: by sharing office space and client contacts or enabling the broker to operate under the same accounting brand.

There are many benefits to this type of arrangement. Accountants can introduce clients in person, hold regular joint meetings and share client information quickly and seamlessly. Particularly for complex loan structures, this model works very efficiently.

Option three: Integration model

For more established accounting practices, fully integrating financing services - along with additional services such as financial planning – into the business presents an opportunity to provide a holistic financial offering and drive economies of scale and efficiency.

This model can also work for accountants who are looking to upskill either themselves or an existing member of their team, and acquire an Australian Credit License (ACL) within their business.

For a successful integration, it is crucial for accountants to engage the right finance aggregator who can offer the tools and support required to broaden their professional offering.

As one of the largest and most established aggregators supporting finance brokers in Australia, FAST works with accountants to help them understand the best licensing arrangement and brokers to align with their value proposition.

FAST was recently awarded the title of ‘Aggregator of the Year’ at the prestigious 2018 MFAA National Excellence Awards for the second year in a row, and ‘Mortgage Aggregator of the Year’ at the Australian Business Banking Awards 2018.  FAST finance brokers can help accountants offer a broader range of services to their clients. To find out more about how FAST can help your business visit www.fastgroup.com.au/numbers