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The Short-Term and Bridging Finance industry is undergoing a maturing process in Australia with initiatives underway to provide access to cheaper, more flexible sources of capital than those provided by way of Debentures, Notes or Preference Shares. These facilities will be available to legitimate business lenders with established track records.
This follows a general push by legitimate lenders to promote client-focussed improvements in the industry to separate out so-called ‘fringe finance’ providers. In tandem with this the Short-Term and Bridging Finance Association (SBFA) is in the process of establishment as an affiliate of the Australian Finance Conference (AFC) to encourage the adoption of best practices in the industry.
Members of the SBFA are committed to the following responsibilities:
a. To lend only in situations where the client can demonstrate an expectation of achieving a beneficial outcome by borrowing;
b. To have the highest regard for a client’s capacity to repay and or refinance within the terms and time-frame of the loan contract;
c. To provide information that allows clients to make fully informed choices;
d. To ensure that clients are provided all necessary information to make a consideration as to the cost benefit of borrowing;
e. To provide accuracy of information and simplicity of language wherever possible in all documentation provided;
f. To treat client information with confidentiality to the highest standards of privacy;
g. To act in a courteous and professional manner;
h. To work towards maintaining and improving the reputation of the Association, its members and its market sector; and
i. To act in the spirit and intentions, actual or implied, of the Code of Ethics and to encourage others in the industry to do likewise.
For further information on matters related to new funding initiatives for short-term or bridging finance providers or for information on the SBFA, please call the incumbent SBFA Chairman Andrew Way in Sydney on 02 97646711.
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