subscribe to our newsletter

Cashflow Finance reports 226% growth in equipment finance

Strong broker uptake of CML Group’s equipment finance offering has helped the lender build revenue from this stream by 538 per cent in the last finance year, its results showed.

Cashflow Finance, part of the CML Group, announced that it saw strong growth in its equipment finance division in FY19, which is distributed solely through the broker channel.

Having first launched in July 2017, the equipment finance division offers loans of between $20,000 and $500,000 – with a primary focus on secondhand transport and yellow goods.

Over its second year of business, the equipment finance division generated $27 million of receivables on $20 million of funds advanced, generating $3.4 million of revenue in the financial year 2019 – a 226 per cent increase on the prior year.

This equated to $1.6 million in earnings before interest, tax, depreciation and amortisation (EBITDA) for the group, a 538 per cent increase on the year before.


Speaking to Mortgage Business about the growth of the segment, CML Group CEO Daniel Riley commented: “In equipment finance, all of our business comes through broker.

“We employ experienced credit analysts to work directly with the brokers, which they like because they can get an immediate response and feedback for the clients.”

Mr Riley welcomed the uptake of the offering, noting that it was “starting from a lower base”, being only the first full financial year that it has been in market.

However, he added that brokers had welcomed the product offering and that CML Group would be looking to expand its broker relations in this market in the future.

He said: “We have built a team of very experienced people from within the industry, and they have broker relationships that they have brought into our group, so that is really how we’ve been able to grow volumes so quickly and gain some traction in what is our new industry for us.


“But we’re bringing some new people into our business now who will be relationship managers with that broker channel so we can get to expand the number of accredited brokers that we have in that division.

“Our group strategy for both equipment finance and invoice finance is to work with more aggregators moving forward. So, we have recently formed a relationship with Connective, and we are receiving opportunities for both parts of the business through the aggregator channel, which we would like to expand further,” he said.

As well as seeing growth in the equipment finance offering, the CML results also show that its core invoice finance offering grew by 19 per cent, with nearly $1.6 billion of invoices purchased. 

This stream resulted in $19.4 million of EBITDA to the group (7 per cent on the prior comparative period). 

While the broker channel generates the majority of invoice finance flows (approximately 70 per cent), Mr Riley noted that there has been a growing share of business coming direct.

The CEO attributed this to a lack of experienced BDMs in the industry, which was acting as a “limitation to CML Group expanding that channel”, coupled with “better at engagement through the digital channel with SMEs directly”.

Overall, CML Group announced net profit after tax and amortisation of $9.5 million, up 46 per cent, and EBITDA of $20.4 million, up 16 per cent on the prior corresponding period.

[Related: CML Group expands funding facility to $120m]

Cashflow Finance reports 226% growth in equipment finance

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

Annie Kane

Annie Kane is the editor of The Adviser and Mortgage Business.

As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts. 

Contact Annie at: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

The chief of Australia’s largest bank has said lenders should act pre-emptively and shift their floor rates for mortgage serviceability am...

Total household wealth reached a high of $13.4 trillion in the June quarter, primarily due to rising property prices, according to the Aust...

The property exchange settlement platform has been granted approval to establish an Electronic Lodgement Network in the ACT.  ...

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.