The improvements include a 35 per cent increase in the facility limit to $145 million as well as a “significant reduction” in loan margins, Centrepoint said in a statement to the Australian Securities Exchange.
They also feature “a number of improvements in loan terms and loan conditions” as well as an increase in the facility term, which has traditionally been reviewed every 12 months, with the next review set for 31 January 2015.
Centrepoint said it has seen strong growth in its loan volumes and profitability over recent years as it expanded its market share, consolidating its position as the largest independent premium funder and third largest overall.
In the year to June 2013, loan volumes grew by 16 per cent and have grown by a compound rate of 14 per cent over the past three years, Centrepoint said.
“In 2014 the group’s strong reputation, an expanded distribution team and consistent reliable service are expected to again deliver double digit growth well in excess of market,” the group stated.
Group managing director John de Zwart described the announcement as “another significant step in Centrepoint Alliance’s strategy of building a highly-respected and market-leading independent financial services business in the premium funding and advice services markets”.
Bob Dodd, chief executive of Centrepoint Alliance Premium Funding, said the group is delighted with the level of support from its funding partner NAB.
“They have demonstrated their confidence in our business with this enhanced facility, underpinning our future growth expectations,” he said.
