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How do we differ from a broker?
Capital Growth offers a strong alternative to the traditional finance broker model. All services are 100% referral based allowing you to refer your clients to licensed experts yet still retain a greater share of income than through a 3rd party broker relationship. In addition, there is no formal training or accreditation requirements imposed on your business - a strong point of differentiation when compared to the growing legislative requirements now being implemented in the broker industry.
What are the costs involved?
There are no additional costs in association with your business offering this value add service to your clients. There are no membership or licence fees and no ongoing costs to participate. Furthermore, Capital Growth will manage monthly commission reconciliation and client portfolio reporting on your behalf.
Do I need formal training or accreditation?
There are no formal training or accreditation requirements for clients of Capital Growth. Our services are 100% referral based and therefore by referring your clients to licensed professionals all licensing and accreditation requirements is the responsibility of the parties making formal recommendations to your clients. Our belief is that a referral based relationship will provide further value for your business as the legislative requirements on the finance broker industry undoubtedly becomes more onerous.
Are all commissions disclosed to relevant parties?
By law there is a requirement that all commissions payable to third parties are disclosed. Commission is disclosed on two levels: Firstly, all gross commissions payable under contract from the banks to Capital Growth is disclosed in the lenders loan offer document to the client. Secondly, we also ask that the referring business partner also disclose the net commissions received from our banking partners to their client at the appropriate stage of the transaction.
Are my clients dealing with licensed professionals?
A strength of our referral model is the ability for business professionals to deal directly with licensed lending professional and retain full ownership of the client throughout all stages of the transaction. Unlike a broker associated transaction, you retain full control of the process and ensure that your clients obtain independent advice regardless of the level of commission being paid to a third party.
Are my clients profiled for cross marketing?
A significant differential with our referral based model is the strict "non compete" clause we have built into our contract for clients. A "non compete" guarantees that our panel of lenders will not market additional services such as financial planning / general insurance without prior consent from yourself. This ensures that whilst the finance needs of your clients are fully serviced by our lenders, they are quarantined from unsolicited cross marketing. This differentiates from a brokerage model where banks retain the right to cross market additional products and services in order to build a closer relationship with your clients.
Who owns the income?
All trail income is owned by the referring partner for the time it remains on the lenders books and for the period Capital Growth receives remuneration. We refer to this as an "EverGreen Clause" and the terms are clearly set out in our agreements.
How am I remunerated?
Capital Growth manages all commission reconciliation on your behalf with net commissions deposited to your nominated prior to the 30th of each month. In addition, recipient created tax invoices and client portfolio statements are forwarded to your office each month to assist with administration of this service.
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