Metro Finance was established in 2011 as a first-tier, prime Australian commercial auto and equipment lender. Metro targets high-quality SME borrowers who operate in low-volatility industries and are seeking to purchase small-ticket auto and equipment assets.

Metro is primarily a commercial lender. In 2021, Metro began originating novated leases. It also commenced originating consumer loans regulated by the National Consumer Credit Protection Act in 2022. In July 2024, Metro launched a new green loan product for electric cars, which will benefit Australia’s small business community and consumers, and will contribute to Australia’s path to emissions reduction. Metro has recently experienced significant growth in origination volume, which it expects to continue over the year ahead – especially in its novated, consumer and green lending products.

Metro originates its lending through the commercial auto and equipment broker and aggregator industry nationally. It applies an accreditation process to the selection of its originators. Metro’s network of brokers provides it with a large footprint of origination partners around Australia, though predominantly concentrated on the eastern seaboard.

Metro has been privately owned since inception by executive chairman, Phillip Crossman, and the Balmain Group, a leading Australian nonbank investor and lender in the commercial property debt sector.

All Metro loans are originated into warehouses and periodically termed out with ABS bond issuance to domestic and offshore debt capital market investors. The business currently has five warehouses and has completed 10 ABS transactions, attracting investment from Australia, the UK, Europe, Asia and North America.

Metro issued its largest ABS transaction in 2021, a A$750 million deal that was well supported by domestic and offshore investors. This transaction was Metro’s first to comply with risk-retention requirements for the UK, Europe and Japan, further diversifying the company’s investor base. Metro has since returned to the market with four risk-compliant ABS issues: three with volume of A$500 million each in February and November 2022 and in April 2023, and one for A$700 million in October 2023. Metro will continue to be a regular issuer in the domestic and international capital markets.

Metro competes directly with the major banks in the prime commercial auto and equipment space. The company differentiates itself from competitors via a high-service model that relies on an advanced technology platform, product innovation, high-quality customer service and quick application turnaround times. Metro’s product offering includes commercial and consumer finance agreements, finance leases and novated leasing. The business continues to focus on expanding its product offering to drive growth and diversity in its loan book. Risk in the loan portfolio is diversified across geographical regions, borrower industries and asset types.

George Pappas
Treasurer
+61 2 8650 4047
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metrofin.com.au