Automotive financial services group Turners Limited has signed a partnership with Motor Trade Finance to provide a non-recourse lending product to MTF’s network of franchisees and dealers.
Some of the product will available for commercial lending, mainly on trucks and machinery, although the majority of loans are expected to be for consumer purchase of motor vehicles.
The new product has been developed in response to demand within the MTF network and will see Turners take on the risk associated with the loans originated by its franchisees and dealers.
The partnership introduces Turners to MTF’s network of about 250 franchisees and dealers, significantly increasing the company’s reach into the motor vehicle finance sector.
This provides access to a number of new lending opportunities for all parties.
Turners Limited chief executive Todd Hunter says his company has a long standing and successful relationship with MTF.
“Turners has an 8% shareholding in MTF and this joint initiative further strengthens the partnership between our two organisations.
“This offer will provide a great outcome for Turners, MTF and the MTF network.”
MTF chief executive Glen Todd says the addition of a non-recourse product gives franchisees and dealers greater choice to meet their individual appetite for risk and return, without exposing MTF shareholders to any additional risk.
“The non-recourse product complements our existing model and will leverage off our superior credit systems and processes.
“The platform is simple to use and the recourse/non-recourse option allows MTF franchisees and dealers to easily select the loan product that best meets their needs.”
The partnership is for an initial two year term, with the right to extend, and funding will be provided by Turners with the support of its banking partner, BNZ.
All loans will be fully secured and be eligible for Turners’ securitisation program which is currently in development and expected to be launched early in 2017.
A pilot of the new loan product will commence in December 2016 with a progressive rollout across the MTF network from early 2017.
