Launched in October 2024, the AFX has successfully settled over 1,800 deals, with an average transaction size of about $45,000. This performance not only highlights the platform's efficiency but also reflects the increasing demand for asset finance solutions among Australian businesses.
Jordan Mutton, General Manager of Asset Finance Exchange, expressed satisfaction with the platform's performance, noting that the results have exceeded expectations. He attributed this success to the platform's unique ability to link brokers and asset finance specialists, providing a seamless referral solution that acts as an extension of the referring brokerage's business.
The AFX's success is indicative of a broader trend in Australia's asset finance market. Traditionally utilized for vehicle and equipment financing, asset finance has evolved to enable businesses to leverage their balance sheets for capital raising. By using assets as security, companies can access immediate funds to drive growth, making asset finance a pivotal tool for small-business expansion and new opportunities for brokers across the nation.
Industry experts, such as Joanna Black, co-owner and director at Quinntessential Finance, have observed a surge in asset finance usage among small businesses across various sectors. This trend is particularly notable as traditional banks tighten lending criteria, prompting more small and medium-sized enterprises (SMEs) to seek faster approvals through brokers. Additionally, there is a growing shift towards financing sustainable assets, including electric vehicles and solar technology, further broadening the scope of asset finance applications.
The success of platforms like the AFX highlights the critical role of innovative financial solutions in supporting business growth. As the asset finance market continues to thrive, businesses are encouraged to explore these options to meet their financing needs effectively.
