Broker platform Effi has partnered up with cashflow lender Possibl to offer a product that can see brokers get paid their commissions in full within 24 hours of settlement.
The new system works like an SME lending product, with brokers fulfilling the role of the SME who are advanced their invoice payments before they arrive, with a set time in which to pay them back.
“We’ve partnered with this new cashflow solution called Possibl to offer brokers early access to their upfront commission, and to have an interim cashflow solution for their own clients as well,” said Effi CEO Mandeep Sodhi.
“It takes a long time at the moment for brokers to get paid on the loan settlement for their upfront commissions. Sometimes it ranges from 45 to 60 days.”
“That hurts the cashflow of any business that wants to grow. We came across this system and decided to integrate with them. We looked into the market and what else was available, and it came across as one of the cheapest and fastest to get the brokers paid up front.”
“What we also like about Possibl is that it isn’t funding 70% or 80%, they’re funding the whole invoice, which gives more flexibility to brokers as well.”
The process for brokers looking to avail of the partnership is easy.
“The way it works within Effi is very simple,’ said Sodhi. “Brokers just have to click one button and it auto populates the form with their details, they just have to put in what the last settlement they did was, and it has to be within the last 30 days and not longer.”
“They have to upload a settlement commission document, how much commission they are getting and how much they want to borrow against that. They can borrow up to 100% of the settlement. They submit, the team at Possibl do a one-off customer verification and thereafter the brokers have an account and can keep doing it.”
“There’s no establishment fee or ongoing interest rate: there’s a flat fee calculated on how much they want to borrow, which generally starts at 2.5% over 42 days. We’re also crediting back 0.5% of the loan at the moment to be used on Effi.”
