Putting interest into their clients

There's plenty of cheap and easy money around for those in need of cash for things such as buying a home or business, interest rates have rarely been lower. And while most people have no problem paying back their loans - the trick is to pay as little interest as possible.

Many lenders and advisers, says Ajay Kumar, director of mortgage broking firm Global Financial Services, stop communicating with their clients as soon as the deal is done.

"They may call them once a year to see if they want another loan, but that's where it typically ends," he says.

"We have built our business over the last 16 years by taking a genuine long-term interest in our clients to help them manage their finances and pay back their loans as quickly as possible."

Ajay visited New Zealand in 1997, liked what he saw, moved to Auckland a year later and launched his firm in 1999. It was a natural step to start a finance company as he had enjoyed senior positions in banking for more than 21 years.

He's clearly proud that many of his firm's customers have repaid their loans well before the full term, and has case studies showing how some have paid off 30-year mortgages in less than 10 years, with an example of one client becoming mortgage free in seven years.

Helping people manage their finances has drawn praise from many quarters.

"I was pleased to make a presentation to Prime Minister John Key in 2010 on how to reduce debt in New Zealand, and some of my suggestions were adopted by Bill English for the Budget to help increase household savings through Kiwi Saver," says Ajay.

Ajay says his firm has arranged loans and mortgages to the total value of $3.5bn, and personal risk insurance cover worth $2.5bn. The company is among the top three mortgage brokers in the country based on the number of loans and mortgages approved in a year.

Revolving credit was named revolting credit for a while because without careful management, people got themselves into trouble.

"Each year we help more than 1500 people with loans and insurance," he says.

In 2012 Global Financial Services was recognised as Mortgage Advisor of the Year by the ANZ, and a year later the bank awarded it Business and Commercial Advisor of the Year and Strategic Partnership Award from ANZ in 2014. In October the ASB named the firm as its top mortgage advisor for 2015 (also awarded in 2014).

Its customer service was recognised with an Auckland Business Award sponsored by Westpac. Overall the company has won 24 awards in the last seven years.
"Our success comes down to providing a high level of customer service and showing clients how to pay back their loans much faster than they might think," he says.

"Everyone is different and some people can afford to pay off their loans quickly because their income is so much higher. Banks will often just sign people up to a 30-year mortgage and not think to advise people that they have the income to lower the term."

Ajay is a fan of the revolving credit system and has developed a custom software package that helps clients reduce the amount of interest they pay. Revolving credit schemes can take into account all cash on hand to reduce the amount of loan outstanding, and so reduces interest charges.

Everyone is different and some people can afford to pay off their loans quickly because their income is so much higher. Banks will often just sign people up to a 30-year mortgage and not think to advise people that they have the income to lower the term.

"Revolving credit was named revolting credit for a while because without careful management, people got themselves into trouble," says Ajay. "But if clients follow our advice, and stick to the management plan we provide, then they will benefit by reducing their loans faster."

The firm's free financial advice includes a full review of client's income, expenditure, and financial goals, and leaves clients with a written action plan for them to keep.

"Once we hear what each of our clients want to achieve we can draw up a custom financial plan to show them how to achieve it," he says. "Then we support them to reach their goals.

"By keeping in regular contact with each of them, if their circumstances change we can modify the plan to reflect those changes. That is the key to excellent customer service."

Although the firm is based in Auckland, it services clients across the country with its 19 staff working six days a week and using video chat services such as Skype and FaceTime when advising clients who aren't able to visit their Kirkbride Road office.

"It is very efficient," says Ajay. "We can chat to clients, email over the forms, talk them through how to fill them out. They email them back and we send them to the ideal lender. If all goes well we can get a decision from the bank within a day or two."

For more information about Global Financial Services, see www.GlobalFinance.co.nz