CAFBA is the country’s peak professional body representing Commercial and Asset Finance Brokers. Our member’s assist in helping small and medium sized businesses obtain commercial, equipment and vehicle finance that help their businesses grow. Our member firms arrange finance in excess of $8 billion of funding to businesses annually.
Originally established in 2008 following the amalgamation of two industry associations, CAFBA works on behalf of its members to proactively collaborate with government and regulatory bodies on legislative issues that affect access to business finance for member clients and the wider business community.
CAFBA is a leader in developing education courses specific to our members and also provides assistance to members through professional development days and regular communication on changes effecting the Commercial and Asset Finance industry.
Our work is to grow and support a diverse profession of commercial and asset finance brokers.
When our work is done business will have access to finance to start, maintain and grow.
• To be the association of choice for all commercial and asset finance brokers.
• We have a membership that is representative of the entire commercial finance brokerage profession.
• Developing and promoting education, creating pathways into and through commercial and asset finance broking.
• Encouraging new and more diverse entrants into the profession.
• Alerting our members to potential regulatory or legislative issues in a timely manner.
• Proactively advocating on behalf of our Members.
If you’re a Commercial or Asset Finance Broker that seeks an association that truly supports your profession we invite you to apply for membership here.
CAFBA lobbies and advocates on behalf of the commercial and asset finance industry in Australia with Federal and State Government and regulators.
CAFBA has directly developed strong relationships with the federal parliament and key regulators and leverages its membership of the Council of Small Business Organisations of Australia (COSBOA) to drive positive outcomes for legislation and regulation.
CAFBA is frequently consulted on financial industry issues and developments and contributed at the 2019 Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry. As a result, it was pleasing that it was noted in Commissioner Hayne’s final report that there was no market failure in the commercial broker channel which CAFBA represents.
It had been CAFBA policy for many years that National Consumer Credit Protection Act should not extend to small business lending, and also the Point of Sale Exemption should be removed, and therefore CAFBA was very pleased that the Royal Commission endorsed both these policies for the sector.
CAFBA made a submission the Productivity Commission’s report into Competition in the Australian Financial System in 2018, with the following comments and recommendations in the final report:
The Commercial and Asset Finance Brokers Association of Australia (CAFBA) (sub. DR92), noted that its members, in arranging consumer finance, were bound by the legislation whereas retailers acting as POS vendors were not subject to the legislation. This could provide the opportunity for high risk consumer finance to be provided to the detriment of consumers and with limited options for redress. It said:
The exemption, therefore, does not provide any means of adequately regulating or controlling the activities of POS vendor introducers who may cause loss or damage to consumers, despite their linked credit providers/lessors being responsible for their conduct. (sub. DR92, p. 7)
The Commission therefore made the following Recommendation:
RECOMMENDATION 15.2 REVIEW OF NCCP ACT EXEMPTIONS: The Treasury should complete its 2013 review into the current exemption of retailers from the National Consumer Credit Protection Act 2009 (Cth), with a view to removing or reforming the exemption. The report should be made public on completion.
The Commercial and Asset Finance Brokers Association of Australia noted the incentives that these risk weightings provided to lenders to use residential property as security: Due to the low-risk weightings on home loans and high-risk weighting on commercial loans, it is more economic for banks to focus on using the family home as security for finance in preference to SME loans or commercial equipment finance (sub. DR92, p. 4)
The Commission made the following recommendation:
RECOMMENDATION 16.1 STANDARDISED RISK WEIGHTINGS FOR SMALL BUSINESS LENDING: Instead of applying a single risk weight to all small and medium business lending not secured by a residence, APRA should provide for a broader schedule of risk weights in its Australian Prudential Standard (APS 112). It should take into account the different risk profile and the type of lending (such as the value of the loans made to an individual business and alternative forms of loan security including commercial property and differing loan to value ratios on this security) to better reflect the Basel Committee’s standardised risk weightings.
The CAFBA Board carefully monitor and address emerging issues in the industry to ensure that the commercial finance industry is appropriately recognised and fairly regulated.
CAFBA is committed to professional standards that promote the competency and integrity of its membership and which results in client and lender confidence in our members and the services they provide.
Please visit here for our Professional Standards Document.
CAFBA is very proud to be a supporter of Camp Quality.
Camp Quality is “Creating a better life for children living with cancer”, and we are proud to be able to support this truly valuable cause. Our fund raising allows not only the child but their whole family to have some relief from their daily battle of this illness by providing day excursions / outings, camps for the children and their siblings, educational programs for the schools to help their classmates understand what is happening to their friend and a great deal of support in general for the parents.
CAFBA members have the opportunity to contribute at various events and activities CAFBA undertakes each year, or may donate to Camp Quality at any time.