What is VBI?
Volume Bonus Incentive (VBI), also known as Aggregator Commission, is a commission paid to Connective by Asset Finance lenders. It is typically calculated based on the total value of Asset Finance settlements written by all Connective-accredited brokers in a given month.
Connective shares a portion of this commission with brokers whose own settlement volumes reach certain monthly thresholds.
Note: VBI does not apply to QuickAF deals, and QuickAF settlements are not included when calculating VBI thresholds.
How VBI is calculated
VBI is generally calculated as a percentage of the total settled loan volume. The commission received by Connective varies by lender, product and month.
Most lenders pay a percentage of settled volume. Typically:
Rates range between 0.4% and 2.5%
The average rate is approximately 1%
Some lenders instead pay a fixed aggregator fee per deal. These payments are shared with brokers in the same way as volume-based VBI.
Because rates vary and are subject to lender agreements, Connective does not publish individual lender VBI rates.
Factors that can influence VBI rates include:
Total monthly settlement volume across all Connective brokers
Lender promotions
Clawbacks or quality metrics applied across the network
Product type and loan terms
How VBI is shared with brokers
Connective shares VBI with brokers based on their total monthly settlement volume across all Asset Finance lenders.
The broker share is a fixed percentage applied to the VBI received on the deals they wrote during that month.
VBI sharing thresholds
Broker settlement volume (monthly) | Broker share |
$250,000 – $749,999 | 50% |
$750,000 – $1,249,999 | 65% |
$1,250,000 – $2,999,999 | 80% |
$3,000,000+ | 90% |
All rates are applied from dollar one. This means the applicable percentage applies to all deals settled in that month, not just the amount above the threshold.
Thresholds are applied at the partner group level, not per individual loan writer. For example, if two writers in the same partner group each settle $700,000 in a month, the combined volume of $1.4 million determines a 65% share.
The determined percentage is applied on a deal-by-deal basis to the actual VBI received from the lender. Because lender VBI rates vary, the amount paid to brokers may differ between deals.
When VBI is paid
Most lenders pay VBI monthly in arrears, although some lenders pay quarterly.
Connective aims to process and pay each month’s VBI before the end of the month following settlement. For example, VBI for March settlements is generally paid before the end of April.
Payments are typically made in the last few working days of the month.
Statements and RCTIs
VBI payments are accompanied by a Recipient Created Tax Invoice (RCTI), which is sent by email to the director of the partner group at the time of payment.
VBI RCTIs and historical statements are not currently available in Mercury.
To request copies of RCTIs or historical VBI information, raise a commission enquiry via Mercury or email [email protected].
Late deals and adjustments
While most VBI is processed in the month following settlement, delays or adjustments can occur.
If late-reported settlements or adjustments move a broker group into a different sharing threshold, an adjustment will be applied to the VBI for all deals settled in that month.
Missing deals and queries
Where deals are submitted directly to lenders, Connective may not automatically be aware of the settlement.
If a deal is missing from your VBI payment or RCTI, raise a commission enquiry via Mercury or email [email protected].
VBI clawbacks
Some lenders claw back VBI if a loan is repaid early, refinanced or defaults.
Where a broker has already received a share of VBI that is later clawed back by the lender, Connective will apply a proportional clawback.
For example, if 50% of the VBI is clawed back by the lender, 50% of the amount paid to the broker will also be clawed back.
Need help?
If you have questions about Asset Finance VBI payments, contact your Partnership Manager or email [email protected].