Good question and thanks for asking. We're always keen to educate and inform our customers as it is very important that you understand all aspects of the motorbike loan process. In many places through our written information and verbally in discussions with our consultants, you will hear or read ‘we advise you to consult with your financial advisor’.
So we’re not surprised that some people would think – you’re the people organising my bike loan, why do I need to consult with someone else? Why can’t you advise me?
The answer partly lies in the laws which govern the financial sector, especially consumer finance and partially in the definition and responsibilities of each role.
We’re providing an overview and definition of the role of the finance broker and the financial advisor; highlighting the similarities and differences of each role; and under what circumstances you may benefit from using their services.
What you need to know
- Jade Bike Loans is a licensed finance broker. That means we have an Australian Credit License issued by ASIC which qualifies us as a credit licensee. As we covered in another article, there are strict guidelines as to what a credit licensee can and cannot do in regard to consumer credit.
- In addition to our ASIC license, Jade is also a member of the FBAA (Finance Brokers Association of Australia) and we abide by the FBAA Code of Conduct.
- The role of the finance broker is to source loan options on behalf of clients and negotiate with lenders on behalf of clients.
- The finance broker has expertise and in-depth knowledge of loans and business finance options.
- Professional finance brokers are accredited with banks and other lenders which provides them with access to the loans provided by those organisations and the approval to negotiate with the organisations on behalf of clients.
- Our consultants will source the loans which best meet the requirements of our customers, as per the details provided to us. This information will not necessarily include specific and in-depth details in regard to the accounting system used by the customer or other individual financial aspects.
- In our material when we refer to “you should consult with your financial advisor or accountant” this is, in some instances, a general reference to referring to a third party for guidance and advice.
- Financial advisor in the general reference we make, could be an accountant, solicitor or a qualified financial advisor, known in some roles as a financial planner. In fact, any professional who has the qualifications and certifications to advise you on managing your finances, can be considered a financial advisor.
- With business finance it is important for a customer to refer to their accountant in deciding which form of commercial finance – Chattel Mortgage, CHP, Leasing – is best suited to their business structure. These finance types have differing benefits and suitability in regard to the accounting method used, treatment of tax and GST, balance sheet and depreciation. The accountant is best-placed to provide advice on these aspects.
- With consumer finance, that is personal loans, an individual may not engage the services of an accountant. They may choose to consult with other parties in regard to advice on their individual finance circumstances.
- The title of Financial Advisor can be used to describe a range of roles but to be certified to advise in certain areas, an advisor must hold an AFS licence – an Australian Financial Services licence.
- The term Financial Advisor can be used to describe Financial Planners. A Financial Planner is tasked with assisting individuals to manage their money and in most cases, build wealth. In order to advise and sell wealth products to individuals, financial planners must be certified. Certification involves undergoing a certain level of education and training. Refer to fpa.com.au
- Financial Planners typically advise on long-term wealth building including superannuation and investments.
- For information on the different certifications for financial professionals and to ensure that the people you are consulting with have the appropriate credentials to provide you with advice, refer to https://asic.gov.au/for-finance-professionals
The Role of Your Jade Broker
The role of your Jade Bike Loans broker is to source you the cheapest bike loan that best suits your requirements. Your consultant will listen to your briefing which should include details of the bike you are purchasing or intend to purchase if discussing a pre-approved loan; an indication of the monthly repayment amount that you would like to achieve; and other relevant details that will assist the consultant in sourcing your loan.
In completing your loan application, specific information around your financial position will be requested. The lender will then assess this information in regard to their individual guidelines and make an offer for your loan.
Your Jade broker may seek numerous quotes for your loan from our large number of accredited lenders to source the cheapest and best offer that meets your criteria. The consultant will present you with the quote and THEN it is your decision to accept or not accept the offer.
It is at this point that you may choose to consult with a financial advisor for their advice and/or provide you with the confidence and support that you are making the right decision.
The benefits of engaging the services of Jade Bike Loans as your finance broker include:-
- Large number of lending sources, meaning more choices to source you the cheapest bike loan.
- Provide assistance with the paperwork to streamline the process.
- Save you time and hassle in sourcing a great bike loan.
We hope that has clarified the differences between a finance broker and a financial advisor and if you have any other questions around bike loans or consumer finance, please get in touch for more information.
To discuss a cheap bike loan speak with a Jade Bike Loans consultant 1300 000 003
DISCLAIMER: THE INFORMATION PROVIDED IS FOR GENERAL CONSIDERATION. ANY REFERENCE TO OFFICIAL GOVERNMENT POLICIES HAS BEEN SOURCED FROM AUSTRALIAN GOVERNMENT AND STATE GOVERNMENT SOURCES. INFORMATION ON INDIVIDUAL VEHICLE SPECS IS SOURCED FROM THE MANUFACTURER WEBSITE. NO LIABILITY IS ACCEPTED FOR ANY ERRORS IN PRESENTATION OR INTERPRETATION OF THE FACTS AS PROVIDED BY THESE SOURCES. WE ADVISE ALL INDIVIDUALS AND BUSINESSES TO REFER TO THEIR ACCOUNTANT OR FINANCIAL ADVISOR FOR PROFESSIONAL ADVICE SPECIFIC TO THEIR INDIVIDUAL CIRCUMSTANCES.
