The full broker market can now access upfront commissions early, after fintech Possibl expands its offering to the third-party channel.
Following its launch of an early commission payment product to brokers using the effi platform, cash-flow solutions business Possibl has opened out its offering to the broader broker market.
The product enables brokers to access up to $10,000 of upfront commissions (or higher, on a case-by-case basis) ahead of a loan being settled.
Possibl will then advance to them their commissions within 24 hours – with the money loaned over either a 42-day or 60-day term, with an interest rate of 2.5 per cent or 3 per cent, respectively.
It aims to help brokers invest into growth plans – for example paying for marketing or sourcing new leads – without having to wait or their upfront commissions to be paid.
Speaking to The Adviser about the product, Possibl co-founder and chief commercial officer, Sam Gobran, stated that the roll out had come following strong broker demand.
According to Mr Gobran, brokers who had been referring vendors to Possibl for its property enhancement loans (a short-term loan that enables a vendor to paint or ‘spruce up’ a property in preparation for sale) had been increasingly seeking solutions that could help them grow their business while awaiting a mortgage settlement.
“Last year was unusual for the housing sector. It was very busy and there were a lot of loans that were being written and brokers had commissions rolling in pretty regularly.
“Now that things have sort of tapered off, brokers are finding it can be a little bit longer in between settlements,” he said.
“So, we’re opening it up so that brokers can actually access their commission when they need it. They don’t have to wait.”
He added that Possibl aims to help “anyone who is in the property cycle ecosystem” to access funds when they need them.
For example, Mr Gobran noted that Possibl recently partnered with Managed App, an end-to-end payment gateway and management platform for the property management industry, to deliver cashflow solutions for property investors, secured against their rent roll.
This aims to help investors pay for unexpected repairs and maintenance or to help pay for improvements to satisfy tenant demand.
The platform is also now available as a white label offering to brokers, so that they are able to initiate loan requests for their clients and lodge and track applications via their own portal.
“It’s a perfect solution for brokers, because they are involved in the property journey from the very start. Whenever someone goes to buy or sell a property, the first thing they do is reach out to a broker and ask how much they can borrower. The broker can then show them Possibl solutions, which enable them to prepare their property for sale, or move into a new house, without touching their deposit.”