Let’s face it, a lot of broking groups have very high mileage on their clocks.

Their engines are out-dated legacy models using too much fuel and under-powered by today’s standards.
Despite this their many owners over the years squeezed as much out of them as they possibly could, before passing them on like an unwanted gift to the next owner.
The paintwork is chipped and their tyres have no tread. But still, they keep on going…

Now that the elections are over and we’re all breathing a bit easier, the time is right to treat yourself to a new and improved model.

Seriously though, some new broking groups out there are worth a closer look.

Today’s best businesses are platforms for their members to contribute to and to learn from, is in stark contrast to the old fashioned 90’s autocracies. In those models, absolute power was held by only the chosen few.
Platform style businesses give up the old overarching control, instead allowing everyone full collaboration, inclusion and transparency. They encourage members to not ‘hoard’ their good ideas, but throw them ‘in the pot’ for all to enjoy and learn from.

‘Boutique broking group of the Year’ finalist 2018 and 2019 and ‘Innovator of the Year’ finalist 2019, Purple Circle Financial Services represents a new breed of broking group.

Giving it’s members shares and living by an ethos of inclusion and mutuality, ‘Empowering Brokers’ is at the heart and soul of the company.
Believing every broker member has the ability to be a leader, PCFS brokers are involved in important company decisions like lender panel, software platforms, CRM’s, Cross-selling and up-selling integrations etc.
Only 2 and a half years old, Purple Circle recently went past the magical $500 million in settled loans, growing it’s member numbers month on month, completely bucking the recent trend being experienced by most broking groups.

This open platform methodology is attracting brokers who have grown tired of the old ways of being treated like a number, and who are ready to embrace the new world of broking in post-Royal Commission Australia.

If you would like to know more, please contact the team.

Time and time again, history has shown us that when the going gets tough, an institution will always deflect blame and think nothing of removing itself from the ‘problem’. We saw it play out in the financial planning arena, and now the exact same thing is being repeated in Finance Broking.

By virtue of the Royal Commission’s highlighting of banks’ shortfalls, and despite the MFAA providing indisputable proof to the contrary, the blame game has been aimed squarely at mortgage brokers.

Now that a convenient ‘fall guy’ has been identified, the ‘problem’ is being dealt with in a ‘Clean and timely’ manner.

For the mortgage broker who has entrusted their business to an institutional owned broking group, one thing is certain about your future; uncertainty.

As a result of this uncertainty, an ever-increasing band of brokers have gathered together and shouted ‘ENOUGH IS ENOUGH’. They are now collectively taking control of their future.

If the polar opposite of being owned by an institution is being owned by it’s members, then a mutually-owned broking group is the solution.

Boasting an unrivalled sense of camaraderie and belonging, Purple Circle Financial Services operates on an ethos of mutuality;

• No institutional ownership
• Members are owners and shareholders
• Brokers are empowered to achieve their goals
• With shared values, members are part of a society in which everybody contributes
• A Broker Steering Committee represents all broker members at Board level
• The Leadership team is made up of industry legends and high-achievers
• Profits are allocated to shareholder members

The company’s mission statement includes the following;

• Decisions are based on what is best for the members
• The benefit for members shapes all decisions
• Long term focus on security and safety for members

Mutuality is insurance in it’s highest form

John Bainbridge English author and activist

Today, all brokers work hard to establish a good name and reputation to ensure they receive regular referrals and repeat business. Without this, the business is going to go south pretty quickly.

There are lots of good reasons to be a Finance Broker, one of which is the fact that when you are ready to retire or change careers, there is a fairly predictable formula used to calculate the value of your business. There is some certainty in what you can expect to receive (Royal Commission outcomes not withstanding!).

Depending on how and how often you can demonstrate communication with your clients (trail book) can also deliver a better or worse payday for you, as any purchaser of your business will look to take over this relationship. Also, they may pay a bit more for goodwill if there is the guarantee of new business coming in after the sale.

Now, if you compare the formula used to determine the value of a single broking business against the formula used to determine the value of an broking group’s business, you will see a huge discrepancy in the numbers used:

A single broking business could usually expect to receive between 1-2 times the annual trail book income, as well as a bit extra for goodwill, whereas an broking group can receive anything up to a 20 times multiple or more of the revenue of the business.

Why is this so?

There could be many reasons. Some of which are:

1. The purchaser of an aggregation business could look at the potential to distribute their own products through the broker network, thus increasing profitability;
2. The broking group could be on a growth trajectory, meaning the purchase calculation could be based on the future potential;
3. The purchaser may own a similar business, therefore the ability to consolidate duplicated costs will have an instant positive impact of the bottom line;

and so on…

The good news is, there is now a way for broking businesses to seriously multiply the value of their business.

How… by owning a piece of your own broking group!

Purple Circle Financial Services allows brokers to earn shares in the aggregation company, simply by doing what you do, writing loans.

You will still build up the value in your own business as you always have, but now you will also own shares in your own broking group.

This has been described by many brokers who have seized on the opportunity as a ‘no-brainer’.

Once earned, the shares are yours for life, no handcuffs or unfair conditions.

As with all things good, this amazing opportunity is strictly limited and is offered on a first-come, first-in basis.

If you would like to know more, please contact the team.