Allianz strikes debtor finance product distribution deal with leading cluster group

2 June 2009

Allianz strikes debtor finance product distribution deal with leading cluster group

Amid challenging economic conditions, an increasing number of brokers are seeking new income streams. Through a new national distribution deal with Allianz Australia, many brokers will now be able to provide debtor finance products to their small-tomedium sized business clients.

In a first for Steadfast, the broker cluster group has endorsed debtor finance products by Allianz Australia for referral by their brokers nationally. As economic conditions worsen, the demand for debtor finance is growing as businesses experience cashflow constraints due to increasing payment delays and bad debts.

The products by Allianz Finance, Allianz Australia’s debtor finance business, allow eligible customers to access up to 90 per cent of the value of their sales (debts) within 24 hours.

“Allianz Finance’s debtor finance products are a new offering for Steadfast brokers , giving them a more comprehensive suite of products to offer their customers and a new income stream for themselves,” CEO of Allianz Finance, Brad Bartlem, said.

“Given the challenging economic conditions at present, we expect the opportunity to generate trail commissions will be welcomed by many brokers.”

Mr Bartlem said: “Allianz anticipates strong growth in the debtor finance market with the much-publicised withdrawal of some international financial firms from the Australian market. This is leaving many small-to-medium sized businesses in urgent need of alternative sources of finance.”

Market commentary indicates the withdrawal of international financial institutions from Australia could leave a $75 billion¹ hole in the amount of funds needed to finance business activity.

“Allianz Finance has access to a solid pipeline of funding from our parent Allianz Australia and has a very strong appetite to do business with the right companies to help them bridge the current gap between the demand and supply of business finance,” Mr Bartlem said.

“Amid these conditions, we also believe the opportunity is there for brokers to earn a healthy trail commission by referring good performing businesses to Allianz Finance.”

Under the spot-and-refer arrangement with Steadfast, Allianz Finance will pay brokers a trail commission for successfully introducing customers to Allianz Finance. Brokers earn trail commission over the length of the loan facility, which typically lasts three to five years, without the need for renewal or re-financing.

Brokers can act as a referrer to Allianz Finance without having to seek amendments to their AFS licence.

“As an added benefit to customers, Trade Credit Insurance may also be included in the package. This is an attractive feature for many clients today because bad debt levels are rising as a result of the economic downturn,” Mr Bartlem added.

Trade Credit Insurance protects businesses in the event that their customer cannot pay for goods or services they have already received.

Businesses that may be eligible for Allianz Finance debtor finance solutions include those operating in the following industries and generating a minimum annual turnover of $1 million:

• Wholesale;
• Manufacturing;
• Business services (Recruitment, Labour Hire, Publishing, Advertising); and
• Printing.
  

Concluding, Mr Bartlem said: ”Eligible business owners can use Allianz debtor finance to access up to 90 per cent of the value of their sales in 24 hours and use the money to fund growth, pay creditors or free up personal property from bank security to fund personal investments.”

For more information visit allianzfinance.com.au

Media enquiries

Nicholas Scofield
Allianz Australia
Ph. 02-9390 6596
0416 088 414
nicholas.scofield@allianz.com.au

Allianz Australia

Best General Insurance Company 2006*
Best General Insurance Company 2007*

The Allianz Australia Group operates in Australia and New Zealand. It includes one of Australia’s largest general insurers, a leading private workers’ compensation insurer, and a life insurer.

Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services. It is proud to be of service to more than 2 million policy holders and over 50% of Australia s top 200 BRW listed companies have some form of insurance cover with the group.

Allianz Australia has approximately 3300 staff.

The Allianz Group’s commitment to social, environmental and economic sustainability has been acknowledged internationally by the Dow Jones Sustainability Index, which recognised the Allianz Group as the most sustainable general insurance group in the world in 2007. In Australia, Allianz Australia is a member of the Greenhouse Challenge Plus program, which is a cooperative partnership between industry and the Australian Government that aims to reduce greenhouse gas emissions.


*Australian Banking and Finance Insurance Awards

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¹ 2009 March Industry Intelligence Unit, "The Changing Cost and Availability of funds - its impact on business", p7.