It’s 2026, and the "set and forget" trail book is a relic of the past. For the modern Australian broker, your trail book isn't just a passive income stream—it is a high-velocity asset class.
Traditionally, accessing capital meant dealing with the rigid credit committees of Tier 1 banks. But as regulatory pressures from ASIC and APRA have tightened bank appetites, a new breed of specialist lenders has emerged. They offer speed, higher LVRs, and tech-integrated valuations that are transforming how brokerages scale.
Why This Matters Now
Brokers who leverage niche financing are acquiring competitors 3x faster than those relying on traditional bank lines. The window to capitalize on these flexible terms is open, but understanding the risks is critical.
In This Article
The Great Shift: Banks Retreat, Specialists Surge
Since 2020, the market share of commercial finance deals for brokers originating from major banks has steadily declined. In contrast, specialist lenders have utilized open banking APIs to underwrite trail books with unprecedented accuracy.
Market Share: Trail Book Financing (2020-2026)
Percentage of total funded commercial broker facilities
The Data Story
While banks (Blue Line) have dropped below 40% market share due to slow turnaround times, Specialist Lenders (Coral Line) have surged to capture the majority of the market, driven by 48-hour funding approvals.
Battle of the Lenders
Not all specialist lenders are created equal. In 2026, the landscape is dominated by two distinct models: the Tech-Native (Co.Credit) and the Strategic Partner (Broker Capital).
Critical Metrics Comparison
We compared the three major funding sources across key performance indicators relevant to a growing brokerage.
- Tier 1 Banks: Low rate, but slow (6+ weeks).
- Co.Credit: Algorithmic speed, slightly higher rate.
- Broker Capital: Bespoke structures, max flexibility.
Broker Takeaway:
If you need cash flow tomorrow for a tax bill or marketing spend, Co.Credit wins on speed. If you are structuring a complex partner buyout or acquisition, Broker Capital offers the flexibility banks deny.
Buying Power Calculator
Estimate your potential acquisition funding based on 2026 standard multipliers.
*Estimates only. Actual lending subject to credit assessment and 'Clean Book' validation.
Strategic Execution Checklist
1 Audit Your Data
Before applying, ensure your CRM data is pristine. Lenders like Co.Credit use APIs to scrape your data. High churn rates (>15%) or incomplete client files will reduce your multiplier.
2 Prepare Compliance Docs
Have your BID (Best Interests Duty) registers and conflict of interest policies ready. Lenders need assurance that the "Trail Book" isn't a liability risk.
Lender Conversation Script
"I have segmented my book into 'Active' and 'Passive' clients. My active retention strategy has kept churn below 8% for the last 24 months, justifying a premium multiplier."
3 Define Use of Funds
Be specific. "General working capital" gets a lower LVR. "Acquiring a $20M book from a retiring broker" gets priority processing.