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Knowing our Customers

Living in the CBD for the past few years I enjoy a cosmopolitan life style. Six years ago a young husband and wife couple opened a coffee shop just down the road from our home. This was their first business they had owned and operated – all though the family had a history in the food industry”. Basically to establish this business they had to put all they had on the line. As a Finance Broker we all know how difficult it can be to raise funds for such people. Over the next four to five years they developed the business to where on some days they would serve over 2000 cups of coffee along with light meals etc. They also through this venture provided employment for up to eight staff per shift /two shifts a day seven days a week. Not an insignificant contribution to the local economy. After five years of seven days a week 15 hours a day they made the decision to sell the business. The new owners take over with the same staff, same coffee and food within a month the business had slowed substantially. The question is why? The original owners possessed that unqualified quantity that built a thriving business . The new owners took on a proven formula – did nothing particularly wrong but never the less the business slowed significantly. Whilst this article is talking about a coffee shop over the years we have seen many examples over many industries where a change of ownership (including generational change) has had a dramatic effect (both positive and negative) on the business. From...

CAFBA’s Response to the Productivity Commission

CAFBA has now put forward our second submission to the Productivity Commission, which concentrated on three key areas. CAFBA had previously acknowledged the work of the Commission in regard to distinguishing consumer and commercial finance. CAFBA particularly brought to the Commissions attention the unfavourable risk weighting currently attributed to small business lending, which could have the effect of banks recommending loan products that used the family home as security, as this provided a more favourable risk weighting. This should be addressed by APRA with APS 112, where a more favourable weighting could be attributed, particularly for equipment finance where the underlying asset has real intrinsic value. CAFBA also again highlighted the Point of Sale Exemption contained in the NCCP Act, which CAFBA believes could lead to poor consumer outcomes. CAFBA has been advocating the removal of the exemption for many years. It is pleasing that the POS Exemption was today raised at the Royal Commission into banks, and CAFBA looks forward to continuing engagement with Government, the Productivity Commission and the Royal Commission for a sensible outcome on this issue. To view CAFBA’s full response - click...

International Women’s Day- CAFBA’s Women in Leadership Program

CAFBA celebrates the women that have progressed their career after undertaking the scholarships in 2016 & 2017 - their participation and mentoring of other women in the industry is important to improve diversity. We would also like to recognise the women currently undertaking the scholarships, with the generous support of Macquarie, Capital Finance, TL Rentals, FAST, Thorn, Flexi, Westpac, NAB, BOQ, Get Capital and ANZ.       Kristina Alexopoulos, Moody Kiddell & Partners VIC Kristina has been with Moody Kiddell & Partners for the past five months as an analyst. She graduated from Monash University with a double degree in Commerce and Arts (Global), majoring in Finance and International Studies. She is passionate about using the rapidly changing business environment of today to find new opportunities and improvements for both her clients and colleagues. As a graduate, she is eager to gain skills to succeed in asset finance and become well known in the industry as a dependable and trusted advocate for her clients. Kristina has participated in Proforce sales training, AML certification and has completed a financial accounting certificate in her time at Moody Kiddell. She looks forward to beginning her Diploma of Finance and Mortgage and Mortgage Broking Management. Her goal is to find success as the leading broker in the country and follow in the footsteps of her colleague, Gareth Powell who won young broker of the year from BOQ. Kristina aspires to lead by example and one day leading her own team and inspiring a culture of success around her. She is honored to be a part of the CAFBA Women in Leadership Scholarship program and...

Cost of Energy – Case Studies Requested 

The Council of Small Business Organisations of Australia (COSBOA) is undertaking research on the impact of increasing energy prices on small business and is seeking real information on the effect of increased energy costs on businesses. They are developing case studies to highlight the changes that have taken place and the effects of price increases. Using these case studies, COSBOA can lobby for better support for small businesses affected by price increases or by the disruption to business caused by power outages. ‘Real life’ examples make politicians and the media very interested. Using this information, supporters such as the federal Small Business Ombudsman and the state commissioners can also apply pressure on government and on suppliers for better policy and better business support.   COSBOA needs our help.   To develop the case studies, they request the following: The name of the business effected by cost increases This would be for our records and would only be released with approval of the business Information on the change in costs Using invoices for information –  over 6 months, 12 months or longer where possible. Copies of invoices With the business name redacted unless otherwise stated by the business. Examples of decisions made as a result of the increase in costs ie: changes to business plans; reduction in staff or staff hours; new purchases; longer time worked by business owners; changes to the way energy is used; changes to operating hours, etc. They note: Even if we just have copies of energy invoices twelve months apart we can do the rest.   Importantly, if we also had information on job losses, effect on profit,...

2018 CAFBA Scholarship Program for Women in Equipment Finance

CAFBA is once again very pleased to announce its Scholarship Program for Women in Equipment Finance for 2018, and is seeking expressions of interest from members or their staff to apply for one of the fifteen (15) available scholarships. This is the third year now CAFBA has undertaken this initiative to address the gender imbalance in our industry. The recipients of these scholarships over the last two years have spoken about how beneficial the program has been, both personally and professionally. Much of the aim of these courses is to unlock potential, and we encourage you to nominate members of your staff who want to take the next step in their careers. The scholarships are arranged through Women in Leadership Australia, and the courses conducted through the Australian School of Applied Management. Five Scholarships are available to women in each of the three key management levels: Experienced senior and executive leaders are eligible to apply for an $8,000 scholarship to assist their participation in the Advanced Leadership Program. Mid-level managers are eligible to apply for a $4,000 scholarship to assist their participation in the Executive Ready Program. Early career managers are eligible to apply for a $3,000 scholarship to assist their participation in the Accelerated Leadership Performance Program. The Scholarships will cover part of the cost of the Course, however as in the past CAFBA will endeavour to find sponsors to assist with the balance of the cost. Could you please forward your expression of interest to ceo@cafba.com.au and we will be pleased to provide additional information. If you would like to speak with one of the previous scholarship recipients to gain a better understanding we will be pleased...

The benefits of having a mentor

When we started our business we were not sure what the future would hold. Our business started with 4 partners, all friends, but having never had to make decisions together it took us a while to learn how to do it. Right from the start we decided to have monthly meetings for operational discussions and quarterly meetings for strategic ones. I believe this constant discussion around the different elements of our business has been the cornerstone to it’s success to date, however, it was also responsible for slowing our growth in the first 3 years. When we started we hadn’t worked out what our respective strengths and weaknesses were as business owners. We would discuss points and go around and around in circles when trying to make decisions or do anything. Management by committee on all decisions is very hard and we recognized that this was hampering our business, so we decided to get help. Help came in the form of an experienced, considered and successful business person who had no experience in equipment finance or broking generally. The lack of industry experience was what we sought as we wanted a fresh set of eyes to help us create our own identity. We recognized we needed someone to help structure our business, teach us to make decisions, and most important of all to believe in ourselves and the direction we wanted to take. That is not to say we don’t continue to make mistakes, we do. The difference is we don’t get caught up in the fear of making a decision and getting it wrong. Having an experienced mentor...