Craigs Investment Partners broker Chris Timms said, over time, the partnership could generate up to $50million of additional receivables for Turners, which had receivables of $125million in the 2016 financial year.
Turners would provide a non-recourse lending product to MTF's network of franchisees numbering about 250.
Importantly, there was minimal additional cost investment required to capture the opportunity available through the relationship, he said.
About 90% of the loans were expected to be for consumer purchase of motor vehicles with the balance as commercial lending - mainly on trucks and machinery.
Craigs estimated Turners was about 10% of MTF's loan volume, as well as being an 8% shareholder in the dealer co-operative.
''The step change opportunity for both parties has been for Turners' Dorchester assets to provide MTF with a non-recourse lending product to extend to MTF's dealer network.''
All loans would be fully secured and eligible for Turners' securitisation programme, which was in development and expected to be launched early next year, Mr Timms said.
At present, for any non-recourse loans - in which the dealer was not willing to take on the risk of the loan - MTF dealers must go outside the MTF product offering in order to provide funding for a vehicle purchase.
The introduction of a non-recourse product would provide dealers with a single method for all financing - significantly increasing convenience and lowering processing times, he said.
The partnership was initially for a two-year term, with the right to extend. Turners had the support of its banking partner BNZ. A trial of the new loan product would start next month.
MTF chief executive Glen Todd said that for the first time, MTF would have access to a non-recourse product through the Dunedin company's lending platform.
The addition of a non-recourse product gave franchisees and dealers greater choice to meet their individual appetite for risk and return, without exposing MTF shareholders to any additional risk.
