CAFBA Annual Report 20-21

Annual Review 2020-2021 Commercial & Asset Finance Brokers Association of Australia The national peak professional body of Commercial Finance Brokers

l a n t o i n s e s e f m o p r P velo De

ip h rs e y d t i a s r Le ve i D Ma rke tO utl oo k

n o i t a t n e s e r p Re

Our Mission Our work is to grow and support a diverse profession of commercial and asset finance brokers.

Our Vision When our work is done business will have access to finance to start, maintain & grow.

Contents 1.

President's Report

2

2.

CEO's Report

4

3.

CAFBA Board of Directors

6

4.

CAFBA Affiliate Members

8

5.

Legislation, Regulation and Lobbying

9

6.

CAFBA Strategic Direction

13

7.

Commercial Finance - Market Overview 7.1 Commercial Property Debt Market Update 7.2 Commercial Equipment Finance Market

14

8.

CAFBA Membership

17

9.

Women in Leadership Scholarship Program

17

10.

Women’s Networking Forum

20

11.

CLYP Commercial Lending Young Professionals

21

12.

CAFBA Education Council

21

13.

Awards 13.1 Financier of the Year 13.2 Business Development Manager of the Year

22

14.

Financial Summary

29

15.

Honour Board

33

1

Annual Review 2020-2021

President's Report 2021 has been a tough year for many of our members, with lock downs in Melbourne and Sydney, and lockouts in other States and Territories. During these tumultuous times, our members have shown a willingness to band together and support each other. I am incredibly proud of the Commercial & Asset Finance Broker community. benefits for funders, brokers, and clients alike.

Whilst 2021 was challenging, the CAFBA team has been able to achieve a lot.

Education will become even more important as we seek to create career pathways for young, bright, enthusiastic people to enter our profession. This diverse group of people will shape commercial finance and create an exciting future for CAFBA and the industry.

The year started with the board agreeing on the Strategic Plan for the next 3 years. The strategy was designed to ensure we continue to work toward our Vision, “When our work is done, business will have access to finance to start, maintain and grow” and our Mission, “To grow and support a diverse profession of commercial finance brokers.”

CAFBA has held the view for many years that selfregulation, not legislation, ensures the best outcomes for commercial borrowers. Both the Royal Commission into Banking and Finance and the Productivity Commission agreed that our industry has proved itself able to provide suitable customer outcomes, and as such, there has not been any recommendations to regulate it. We are very proud of this, but we also understand that we need to keep evolving. Self-regulation takes many forms, and we are currently reviewing a number of options. It is my view that we need to make Commercial and Asset Finance Broking a recognised profession, no different to an accountant or an engineer. Our self-regulation model must support this evolution. I am looking forward to seeing the recommendations of the Self-Regulation Committee, as I think it could be a watershed moment in the history of our profession.

Guided by these principles, the Strategy and Implementation Plan 2021-2024 was built upon 4 key pillars:

• Education • Self-Regulation • Advocacy • Member Value Much work has been done in each of these areas over the last 12 months, with committees being set up in each individual strategic division. In addition, several sub-committees have been established, made up of CAFBA members with the relevant experience and expertise to assist with the formulating and implementation of the plan.

The Education Council, led by Terry Moody, was formed in partnership with many of our financiers and is laying a foundation for new brokers to enter the industry. It is also providing very clear educational pathways through the industry for experienced brokers, with the Diploma, and the soon to be released Australianised version of the Certified Lease & Finance Professional (CLFP). The continued focus on education ensures that our members are able to deliver market leading service and solutions to their clients. This has many

2021 saw the establishment of the Advocacy Committee, chaired by David Gandolfo. There has been a concerted effort to engage with both sides of politics, regulators & funders. We have had many meetings over the last 12 months, covering a wide range of topics. Some of these include:

• The impact of regulation such as AML and KYC on SME lending;

2

Annual Review 2020-2021

• The creep of responsible lending regulations into commercial finance; • The extension of the instant asset write off; • Cyber crime; • Tax incentives for energy efficient vehicles; • The role of AFCA and the process for making complaints. We are concerned the current process unfairly burdens our members with costs, even if the claim is found to be baseless.

CAFBA is very proud of the relationships we have with our funders. I would like to acknowledge and thank them for their support of CAFBA and our industry. The partnership with our lenders ensures we can deliver market leading training solutions. This allows our members to deliver the appropriate solutions to the customer and helps CAFBA to deliver on our mission and vision.

Lastly, I would like to thank the Board and our CEO, David Gill, for their tireless work in 2021. It has been a privilege to work with each of you. 2022 promises to be a great year.

I hope you enjoy a well-deserved break over summer with your family and friends. Merry Xmas and Happy New Year!

Matthew Atkin CAFBA President

3

Annual Review 2020-2021

CEO's Report The year started with fresh optimism, as we believed that the worst COVID disruptions were behind us. Events were planned, and we were able to hold our Women's Forum and CLYP events in March, golf days in Sydney and Melbourne, and Professional Development Days in the mainland capitals in May. All these events were very well attended as everyone enjoyed the opportunity to reconnect and network after the restrictions of 2020.

To further assist with member value, we have begun scoping a member engagement and community platform system called Higher Logic.

The platform will effectively transform the way we engage with the industry and our members and provide a valuable member benefit. We are looking to launch the Higher Logic Platform in the first quarter of 2022.

This all changed in June with further outbreaks of COVID and subsequent extended lockdowns in Sydney, Melbourne, and the ACT. This second wave of restrictions appeared worse than those of 2020, as the emotional toll of additional lockdowns was felt. However, our industry once again displayed its resilience. Virtual meetings became the new normal and through innovation and persistence, we got on with the tasks at hand.

A key tenet of the Plan is to maintain a selfregulating industry whilst increasing our professionalism. As the association of commercial finance brokers, it is incumbent on us to set and maintain standards that would be expected of a professional industry. As part of this, there has been much discussion on professionalism and how it is measured, particularly in the context of self-regulation.

CAFBA as an organisation continues to grow and evolve, and each year brings new initiatives as we strive to further professionalise the industry. 2021 is the first year of our new three-year Strategic Plan, and whilst the goals are ambitious, they represent community expectations of what a professional industry should look like.

The Annual Review deals with the Strategy in more detail, however, from a planning perspective, the board had to first decide on how we would deliver meaningful outcomes to ensure the Strategy's success. An important consideration was to utilise our available resources. Fortunately, we have a very talented and committed board, who all run their own successful businesses, and their commitment is such that they willingly gave their time to oversee the implementation. In January, committees were formed to oversee each aspect of the Plan, and 12 months in we have made significant progress.

KPMG has started work on our data survey, which will be an invaluable resource for the commercial finance industry. An integral part of this process is the broker survey, which will provide data, unavailable to date, to better assist how we shape the industry.

One of the options we are considering is the Professional Standards Scheme (PSS). For the purposes of regulation in Australia, one way of determining whether a group is a profession is to see if they operate under a Professional Standards Scheme. If they do, they have proved their selfregulatory capacity, and have been recognised by the combined Australian governments' Professional Standards Council.

A Professional Standards Scheme is a legal instrument that binds associations to monitor, enforce and improve the professional standards of their members, and to protect consumers of professional services.

Any Australian professional association that meets the definitions and criteria outlined in professional standard legislation can apply for a

4

Annual Review 2020-2021

Professional Standards Scheme. The Councils decide whether to approve such an application after considering a range of matters related to demonstrating commitment to professional standards and self-regulation.

re-appointed to the Board of the Council of Small Business Organisations of Australia (COSBOA) this year. We are very fortunate to have David's expertise and passion advocating on behalf of the industry.

In return for these commitments, Professional Standards Schemes cap the civil liability or damages that professionals who take part in an association's scheme may be required to pay if a court upholds a claim against them. Many other industry associations, such as the CPA, operate under this model, which provides government recognition of the industry's professional standards and capability. Whilst this is a longterm project, it is under active consideration by the board.

I would also like to acknowledge the work of the board this year, led by Matt Atkin in his first year as President and Domenic Lo Surdo as Vice President, both of whom have made significant contributions, particularly around strategy and direction. Sharon Piening as Treasurer and a leader with the Women's Networking Forum, has been exceptional, as have the entire board. A special mention also goes to Ian Elkner, who stepped down this year after many years of service. Ian has been a tireless worker on behalf of CAFBA.

Over the past 12 months the Education Council, under the stewardship of Terry Moody, has been developing a Continuing Professional Development and Compliance platform that will be used to verify and authenticate courses and ensure they are consistent to industry standards.

The Council has been discussing its vision of a structured Mentoring program which will ensure any new entrant to commercial and asset finance is capable of effectively delivering a commercial finance product. Both these tasks are viewed as key steps in our further professionalisation of the industry. We also acknowledge the work and assistance of Gerard Hermens and the Institute of Strategic Management (ISM), which, as our Registered Training Organisation, has been instrumental in assisting and developing our educational capabilities.

As an association, CAFBA has come a long way, and there is still much to be done to achieve our goals. With our very capable board and qualified membership, I am confident we are in good shape to continue in our mission of growing and supporting a diverse profession of commercial finance brokers.

David Gill CAFBA CEO

Advocacy has always been an integral part of CAFBA's activities, and we are very fortunate to have David Gandolfo continue to lead this as our Advocacy Chair. David has maintained CAFBA's practice of engaging equally with both sides of the political aisle, to ensure a government or potential government understands our policy, as well as government regulators, to ensure best customer outcomes are achieved. David was also

5

Annual Review 2020-2021

Patrons Chair of Education Terry Moody Moody Kiddell & Partners Asset Finance Pty Ltd NEW SOUTH WALES

Chair of Advocacy David Gandolfo Quantum Business Finance VICTORIA

Board of Directors President Matthew Atkin Atlas Equipment Finance VICTORIA

Vice President Domenic Lo Surdo Stamford Capital Australia Pty Ltd NEW SOUTH WALES

Treasurer Sharon Piening The 500 Group VICTORIA

Secretary Ian Elkner Centrepoint Finance VICTORIA

Chief Executive Officer David Gill CAFBA 6

Annual Review 2020-2021

Board of Directors Director Neil Ferguson Ledge Finance Limited WESTERN AUSTRALIA

Director Rebecca Mansfield Loan Market NEW SOUTH WALES

Director Max McFarlane Skyward Financial NEW SOUTH WALES

Committee Member Director Renee Tocco George Karam Loanezi BF Money QUEENSLAND Resigned September 2021 NEW SOUTH WALES Director Tina Clark Laurentide NEW SOUTH WALES Appointed September 2021 Director Mike Steel RLA Finance Australia QUEENSLAND

7

Annual Review 2020-2021

Affiliate Members & Support Services Provider Platinum Affiliate

Gold Affiliate

Gold Support Services

Valuation Services

Silver Affiliate Apricity Finance Group P/L Briqwise P/L Credit Sense Australia P/L Finance One Commercial P/L Grow Finance

Silver Support Services Hermes Business Capital Judo Capital P/L Limba Loans NFC Aggregation Ownright P/L t/a FUNDA

Bronze Affiliate Angle Finance Astute Financial Management P/L Australian Finance Group Ltd Banjo Loans Business Fuel Cashflow Finance Australia P/L & Classic Funding Group P/L Trading as earlypay Cathro & Partners P/L Commercial Equity Group Ebury Partners Australia P/L Finance New Zealand Limited Fin One P/L T/A Finance One Grenke Australia Iron Capital Group

LoanQ Technologies P/L

Bronze Support Services La Trobe Financial Services P/L Lend Capital P/L Lumi Financial Management P/L MoneyTech Finance P/L Morris Finance Ltd Multipli P/L Oak Capital Octet Finance Private Mortgages Australia Quest Finance Australia Resimac Asset Finance TruePillars Vow Financial P/L Your Client Matters

8

Credit Fix Solutions Odessa O'Maras Optimum Insurance Services Institute of Strategic Management Send FX P/L

Annual Review 2020-2021

Economics Legislation Committee's inquiry into the National Consumer Credit Protection Amendment Bill 2020. The bill largely focuses on amending credit laws so that they remove responsible lending obligations (RLOs) and extend the best interests duty to more credit assistance providers. The chief intention of the removal of the RLOs, as set out by the federal government, is to reduce the time it takes for individuals and small businesses to access credit and streamline lending regulation.

5. Legislation, Regulation and Lobbying While Covid-19 and the resulting lockdowns meant that it was another year of interruption and uncertainty for many businesses throughout Australia, there was no pause to CAFBA's advocacy work. At the forefront of this work was CAFBA's involvement with the National Consumer Credit Protection Amendment Bill 2020 (NCCP). CAFBA also made submissions to the Review of the Australian Financial Complaints Authority; proposed changes to the Consumer Data Right (CDR) Rules; and a pre-budget statement of priorities for the 2021 budget.

At the hearing, CAFBA stressed that the proposed changes to responsible lending should not affect commercial brokers, as the explanatory notes are clear that it only affects regulated consumer transactions.

CAFBA called on the Senate to ensure that any changes to lending laws provide a clear delineation between consumer and business lending.

In coordination with these submissions, CAFBA leveraged its strong relationship with both sides of the aisle of Federal Parliament, key regulators, and our membership of the Council of Small Business Organisations of Australia (COSBOA), to ensure that any new legislative changes did not inhibit the important work of commercial finance brokers, particularly when it came to the ability of the industry to self-regulate.

CAFBA has long argued that there has been NCCP policy creep, in which, as a precaution many banks have overlaid consumer credit regulations into the small-business market, and the consumer style assessment of credit has started to be applied to business lending. Small-business finance is significantly more complex than consumer loans and should be assessed accordingly. CAFBA advocated that the committee specifically make it clear that any finding they make over NCCP does not apply to commercial lending.

CAFBA maintained it's close relationship with The Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and the important work they do advocating for the nation's small business owners, many of whom are the clients our industry serves.

CAFBA was pleased with the appointment of Bruce Billson as the new Ombudsman in March. Mr Billson is a former Federal Minister for Small Business with a distinguished parliamentary and private sector career.

CAFBA has enjoyed a long and successful working relationship with Mr Billson, and former CAFBA President, David Gandolfo, was an advisor to Mr Billson's Ministerial Advisory Council in 2014 and 2015.

Summary of Australian Financial Complaints Authority (AFCA) Submission CAFBA's Position It is a condition of CAFBA membership that commercial equipment finance brokers must belong to AFCA.

We would also like to take this opportunity to pay tribute to Kate Carnell AO, the inaugural ASBFEO Ombudsman who retired after serving with distinction from March 2016. CAFBA thanks Ms Carnell for her outstanding work and for the level of access and collaboration that CAFBA has enjoyed with the ASBFEO at all levels over that period.

While CAFBA believes AFCA's role is important to the continuing protection of consumers and small business, it is our view that the legislation is too heavily weighted towards the complainant.

Key Points There is a financial incentive available to making a complaint, as there are no associated pecuniary costs if the complaint is not upheld. The costs for any complaint are borne by the AFCA member.

CAFBA would also like to recognize and thank our Chair of Advocacy, and former president, David Gandolfo, for the tireless work he does advocating for the commercial broking industry. David's ability to liaise with political parties and regulators and communicate the needs of small business and commercial brokers is an invaluable asset to the industry.

We have had many instances of member feedback that whilst the complaint has eventually been determined in favour of the AFCA member, it has nevertheless come at considerable cost to the member in time and legal advice.

In February of 2021, David, alongside CAFBA president Matthew Atkin, appeared before the Senate

9

Annual Review 2020-2021

In addition to this, if a person has two years' experience with a Licensee that holds the same authorisations that the person is seeking and they (including their organisation) have compliance arrangements and systems in place that meet the requirements of AS/ISO19600-2014 (Compliance Management), then that person meets the requirements for obtaining an ACL.

The issue for CAFBA members, as commercial brokers who introduce loans to lenders, is exacerbated by the fact that not all lenders are AFCA members. If the lender does not belong to AFCA, the complaint is subsequently lodged against the broker, whereas the issue should rest with the lender.

Recommendations There should be a sharing of costs where complaints are made. At present there is a disincentive to belong to AFCA due to the unfair apportionment of costs involved.

All commercial brokers, Australian Credit Licence (ACL) holders or not, operate under the same framework.

Therefore, for CAFBA members who are not licensed, we seek acceptance of them as a 'trusted advisor'.

Summary of Consumer Data Right Rules Amendments Submission

Recommendations

CAFBA's Position

To include CAFBA commercial brokers as a Trusted Advisor. This is consistent with changes intended “to facilitate current consumer practices of sharing their data with trusted third parties in order to receive advice or a service and increase convenience and control for consumers by enabling them to use the CDR to share their data with their chosen trusted advisers. In turn, this will encourage greater participation in the CDR by accommodating existing and new use cases which rely on the ability to disclose data to third parties to be accommodated in the CDR” – as stated in the explanatory statement.

CAFBA is keen to ensure that the proposed CDR Rule changes enable SMEs in Australia to have greater flexibility in access to finance.

This submission supports the proposed changes; however, CAFBA wants to ensure that professional commercial finance brokers, who operate under strict self-regulatory guidelines, are included under the legislation as a Trusted Advisor.

Key Points The explanatory statement to the rule changes states that 'the trusted adviser model will allow consumers to consent to an Accredited Data Recipient (ADR) disclosing their CDR data outside the CDR system with professionals that are sufficiently regulated to receive CDR data.’

Summary of Pre-Budget Submission 2020-2021 CAFBA's Position CAFBA recognises the work the Government have done during the COVID pandemic in aiding Australian businesses and workers. CAFBA members are not only financial service providers, but also small business owners who are actively involved in our community.

The key to this is the concept of 'sufficiently regulated'.

All licensed brokers (which includes a number of CAFBA members) should qualify, given the nature of their licensing obligations: honest, efficient and fair conduct, responsible lending, no conflicts of interest to consumer disadvantage, adequate resources, compliance, insurance, AFCA membership.

The members of CAFBA believe the government must continue to support economic growth and pursue policies that allow businesses in Australia to survive this pandemic and then continue a course of growth.

Successful businesses need access to finance, a tax environment that encourages investment, and the capacity to reach out and receive services that assist them to grow when needed.

In 2017 QED Risk Services independently verified CAFBA's membership standards and concluded that CAFBA's requirements for membership either meet or exceed the requirements under the National Consumer Credit Protection Act 2009 and the regulatory guidance of the Australian Securities and Investments Commission (ASIC) for a person to meet the “fit and proper person” test for an Australian Credit Licence (ACL).

Key Points & Recommendations

1. Establish a long-term and means-tested instant asset tax write-off CAFBA has consistently advocated for and supported the Australian Government's instant asset tax write-off

10

Annual Review 2020-2021

scheme. We believe, however, that the Government must establish this as a long-term provision for a minimum of three (3) years and extended annually to provide certainty and to encourage businesses to continually upgrade and enhance their operations.

This would capitalise on and strengthen the existing success of this policy.

5. More support for the access of credit for small business

A long-term approach to this instant asset tax writeoff would provide businesses with more certainty in their planning for investments in the long-term.

We support the Government's draft legislation to repeal Responsible Lending Obligations under NCCP, and whilst these apply to consumer lending only, for some time lenders have been applying the same principles to small business lending, which has had the effect of making new credit difficult to access and a slowing down of the approval process, at a time when business needs funding.

2. Develop a range of business investment allowances

Summary of Consumer Credit Reforms Submission

CAFBA acknowledges and commends the investment allowances outlined in the 2020 budget. The investment allowances, however, should be for a minimum of 3 years to provide business with certainty and confidence. CAFBA believes it will have a greater incentive value than a small reduction in company tax, which is difficult to quantify and has far less impact on day to day operations.

CAFBA's Position It has been CAFBA's contention for some time that RLO, designed for consumer lending, has morphed into business lending in a “one size fits all” approach by lenders, which has affected access to finance for small business.

Key Points CAFBA represents both commercial and asset finance brokers in Australia and so our activities, industry sector, and clients are vastly different from that of the personal finance, mortgage broking and NCCP regulated credit environment. This was acknowledged in the Recommendations of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry, that consumer lending laws should not be applied to small business lending.

CAFBA believes an investment allowance that has longevity will provide confidence and have the necessary positive impact on the economy to increase capital expenditure, with the flow on effect of increasing employment and therefore government revenue.

3. Amend legislation to make available tax incentives to all company structures.

We have for some time requested clarity around the unintended consequences that may be attached with the Immediate Tax write-off initiative. According to the Australian Taxation Office rules, excluded assets include “assets that are expected to be leased out, for more than 50% of the time on a depreciating asset lease”.

CAFBA believes that the difference between household and domestic use and SME lending needs to be both emphasised and understood. CAFBA upholds the right of all consumers and every business to be protected from unjust practices and to have ready access to fair remedies; however, there is a clear distinction between the needs of consumers and businesses when seeking to borrow money, and responsible lending laws have not assisted this distinction, and in fact caused difficulties in obtaining finance for small business, due to the unnecessary application of responsible lending laws by lenders for small business.

We understand that the intent of this rule is to stop large hire companies from taking advantage of the incentive, however, it appears that this rule may be detrimental to an SME trying to take advantage of the government incentive, from which they are currently excluded from participating.

Many businesses in Australia have expressed frustration at the complexity and barriers that they face when seeking a loan. Some of this is due to lenders applying consumer lending laws to commercial loans, which is inappropriate and an obstacle to good credit decisioning. It is essential that we allow small businesses the opportunity to invest in and expand their businesses.

4. Deferral of the superannuation guarantee The superannuation guarantee is set to rise from 9.5% to 10%, and then eventually to 12% in 2024. In the current COVID-19 economic environment, it is CAFBA's strong view that the proposed increase in the superannuation guarantee should be deferred until the economy has recovered.

11

Annual Review 2020-2021

Leaders Forum Luncheon in May

David Gandolfo & Kate Carnell

CAFBA President Matt Atkin with CEO David Gill

Shadow Assistant Treasurer Stephen Jones Anthony Albanese speaking with Board Members Rebecca Mansfield, at the Labor Business Forum Renee Tocco and Sharon Piening

12

Kate Carnell and Peter Strong with Board Members

Annual Review 2020-2021

6. Introduction to the CAFBA Strategy & Implementation Plan 2021-2024 In December of 2020, the Board met to conduct a strategy workshop for its second formal strategic review, which sets the course for the association to follow for the next three years. The December meeting was the culmination of many months of research and was held in collaboration with approximately 20 internal and external stakeholders, including the CAFBA Chair and CEO, CAFBA board members and members at large, Federal policymakers, the Office of the Australian Small Business and Family Enterprise Ombudsman, government relations advisors, and other small business and finance associations.

From the results of the research and the workshop, the Strategy and Implementation Plan 2021-2024 was drafted, with further feedback and revisions incorporated. The aim of this process was to ensure that CAFBA continues to grow and support a diverse profession of commercial finance brokers within the economic and political context of the designated three-year period.

coordinated commitment to higher education and self-regulation. The previous strategic plan, from 2017-2020, provided the association with the direction it needed to achieve our goals. We believe the current iteration will provide a similarly robust platform for the coming three years, from which we will continue to grow and evolve.

The 2021-2024 strategy encourages CAFBA to be industry leaders on many issues and, through our use of white papers, we have the opportunity to influence policy makers. The plan utilises the diverse skills within our membership, forming working groups to consider issues and develop solutions which will help us to reach our goals more efficiently. CAFBA members with the relevant expertise are encouraged to assist with the implementation of the plan. To do this the board has formed several sub-committees to oversee these strategies: 1. Compliance Committee (which includes AML/CTF, Annual Privacy, Digital signatures and fraud) Chaired by Neil Ferguson will investigate and resolve compliance issues that affect access to commercial finance.

Four key strategic goals emerged as priorities for the next three years: 1.

Education: Higher educational standards are to be adopted across the entire commercial financial sector;

2.

Self-Regulation: Education, not regulation, is seen as the best way to manage practice rights within the commercial broking industry;

3.

Advocacy: CAFBA uses its influential policy voice to support brokers, small and medium-sized businesses and the Australian economy;

4.

Member Value: CAFBA articulates a compelling value proposition that attracts current and new entrants to the profession to join the association.

The objectives of the committee include: developing a consistent interpretation of AUSTRAC legislation; investigating issues relating to fraud and developing procedures to assist members identify these and protect their clients; developing widespread acceptance of digital signatures.

2. Industry & Member Intelligence Committee (including industry data and member surveys) coChaired by Max McFarlane and Domenic Lo Surdo will address the lack of data in commercial finance and create commercial broker sentiment surveys that can be analysed to determine trends and future needs.

Data sets will cover: Industry level data, bank and non-bank lending volumes and values; aggregator surveys; and member surveys for demographic data, sentiment, and benchmarking.

The Strategy and Implementation Plan 2021-2024 will play a central role in the commercial finance industry's ability to further professionalise through a

13

Annual Review 2020-2021

3. D i v e r s i t y, I n c l u s i o n & D i g i t i s a t i o n Committee Chaired by Sharon Piening will address matters of equality, inclusion and diversity within the commercial finance industry to enable employees to reach their full potential, and to embrace diverse cultural perspectives which can spur innovation and creativity.

The objectives of the committee include educating our members on how to leverage the benefits of diversity, inclusion and digitisation to maximise growth and opportunity within their firms; to create more resilient businesses that can both endure and drive change through diversity and inclusion; and to provide resources and professional guidance on all aspects of diversity.

4. Self-Regulation Committee Chaired by George Karam will evaluate and implement a model that is best practice based and maintains self-regulation in commercial finance. The committee will engage with other professional bodies to understand different models, which include licensing.

5. Accreditation Standards Committee Chaired by Rebecca Mansfield will create minimum standards to practice as a commercial finance broker with industry acceptance and look to develop a standards framework that will protect both the commercial finance industry and our customers.

growth in the housing market (as opposed to apartments) has been unprecedented.

Latest data to September shows the annual average house price across Australia has increased by 21.9%, with significant growth across all major capital cities.

Some city markets have seen growth of over 30%, including Sydney, Hobart and Darwin. This same strength has not yet flowed through to the apartment markets, with annual growth to September 2021 of just 6.8%, however, I do expect this to rebalance over the next 12 months or so and for the apartment markets to rise given the price differential that has resulted. We are now at an historical high in terms of the gap between median house price and medium apartment prices in the major capital cities according to domain.com.au.

The real winner from Covid recovery has been the regional markets, with these markets experiencing extraordinary gains as people (and businesses) reassess their requirement to live and work in major metropolitan centres and be close to work. For example, in the year ended September 2021, Melbourne and Sydney accounted for 48% and 47% respectively of all net outflows to regional markets. This theme will continue to have a bearing on markets for some time in my view, albeit there has been recent press about the regional market prices having peaked – little wonder given their meteoric rise.

In a bid to further professionalise the industry, the committee will provide an ongoing forum in which to continue the dialogue on standards, and to promote CAFBA membership as a key criteria for accreditation.

The Strategy and Implementation Plan 2021 – 2024 can be found online and we encourage you to read it and be part of CAFBA's journey, as the plan's outcomes will benefit the entire CAFBA membership and the commercial finance industry at large.

7. Commercial Finance Market Overview 7.1 Commercial Property Debt Market Update The property party continues!

The 2021 financial year in property was extraordinary. It was a year that will unlikely to be repeated for quite some time in residential markets. In particular, the price

We have seen very little medium density built from development come to market over the last 2 years as a direct impact of Covid and closure of international borders.

As borders open up next year, and as foreign students (and potentially foreign buyers) make their inevitable returns to Australian shores, I expect that we will see significant growth in the appetite of developers to deliver medium density stock (townhouses and apartments) with a strong rebound starting from the 1st

14

Annual Review 2020-2021

calendar quarter of 2022 – this will provide even more opportunity for the broker market to continue to offer service and differentiated lending product to markets. I am of the view that presales will return next year (we are starting to see the early signs of this in some markets like SE Qld) and this will result in the banks playing more aggressively – again something which we are starting to see already.

In the commercial markets we continue to witness assets trading at historic low yields / high prices despite some challenging circumstances and deteriorating fundamentals. We have record high vacancies, very high incentives and real uncertainty about the future of core CBD office space. However, assets continue trading on record high prices. That's very hard to reconcile but to only conclude that it is the sheer weight of capital currently in the market driving this outcome. Similar observations can be made about the retail and the hotel (accommodation) markets.

The darling of the commercial markets, and this looks likely to continue through 2022, are industrial assets.

The once unloved / boring / considered too high-risk given single tenant exposure asset has swung right back into favour and continues to strengthen with yields showing no signs of softening. As online shopping and the internet become more intertwined in our daily lives, this is the one asset class whose fundamentals support the observed value growth. This same comment applies to data centres, aged care, fast food and fuel assets, all of which performed strongly through Covid.

The one constant discussion point is on inflation and interest rates. I will leave this for the experts, however, any significant increase in inflation and interest rates will have a material impact on asset prices – residential and commercial, given the strong credit growth we have experienced in these assets over the Covid period.

Perhaps more likely to impact is the withdrawal of the massive amount of liquidity that the global governments have pumped into markets since the onset of Covid. As inflation rises, governments around the world (including the Reserve Bank) will have no choice but to taper the bond buying programs and reduce liquidity. In my view, this is far more likely to impact commercial property than interest rates. It's liquidity withdrawal and the reduction in money supply that will be felt more acutely in real estate markets than interest rates. Let's see how things unfold through 2022/2023.

In the credit and lending markets, there is almost an insatiable appetite from nonbank lenders to continue to

penetrate markets. Banks now consider nonbank lenders genuine competitors; a view they did not have 12-18 months ago. There has even been some market noise about the nonbank market being regulated more closely given the competitive advantage that the nonbank lenders have in terms of being able to lend on more aggressive terms than the APRA regulated banks. This is definitively a space to watch over the next few years – I am sure we will hear more from the Banks on this front!

We are seeing the banks become more aggressive in terms of building out specialised property finance teams and better resourcing brokers as the key distribution source of potential deal flow. The banks are continuing to realise that the third party channel is the best way to originate deals and that this trend will continue.

In my view what is more encouraging is that, as we approach the end of the 2021 calendar year and think about the 2022 year ahead, the growth in credit (bank and non-bank) in the property markets will continue into next year.

I can honestly say that there has never been a better time to be a commercial property broker (never in my career anyway). In order for clients to know they are getting the best deal for their project, their need to engage with an advisor / broker has never been so compelling. This presents all brokers active in commercial property markets, or even considering the commercial property markets, with an extraordinary opportunity to assist their clients and add real value to them in that process.

Domenic Lo Surdo Stamford Capital Australia Pty Ltd

7.2 Commercial Finance - Market Overview The Delta outbreak temporarily weighed on business investment Non-mining business investment rose strongly prior to the 2021 lockdowns. Machinery & equipment investment increased to be well above its pre-pandemic level, supported by strong growth in profits throughout the pandemic, the rapid recovery in domestic activity and the Australian Government's tax incentives for investment (Graph 2.13). Non-mining non-residential construction activity had also turned around in the first half of the year, reflecting growth in investment in renewable energy projects and logistics buildings such as warehouses.

15

Annual Review 2020-2021

Mining investment was little changed in June, as firms did not adjust capital expenditure plans despite high commodity prices. Investment activity, particularly construction, was disrupted during the September quarter as states with large outbreaks of the virus placed restrictions on construction site activity. As a result, business investment is expected to have contracted sharply in the September quarter. However, a range of partial indicators suggest that this will be a temporary setback, and that business investment will regain its positive momentum following the lifting of restrictions in states affected by outbreaks. Non-mining firms upgraded their investment expectations in the most recent ABS Capital Expenditure (Capex) survey, conducted in July and the first half of August. Many firms in the Bank's liaison program have remained optimistic about the outlook in recent months and have generally not cancelled capital expenditure plans. That said, the impact has been highly varied across firms of different sizes and operating in different industries. Firms in the construction sector have indicated there could be scope to catch up on missed non-residential construction work. Surveyed measures of business conditions declined from the very strong levels seen in the first half of the year, but remain broadly around average as business confidence rebounds, particularly in New South Wales (Graph 2.14).

Extract sourced from Statement on Monetary Policy November 2021 - Reserve Bank of Australia

16

Annual Review 2020-2021

Growth can also be attributed to the need of members for an advocacy body to represent them in difficult times.

We have continually stated that it is the aim of CAFBA to be the most relevant association for commercial finance brokers and membership numbers reflect the success of that relevance.

Whilst it is pleasing that existing commercial brokers are joining from other associations, a key strategy of CAFBA is to provide resources and assistance to brokers that are new to the industry. With the introduction of the Certificate IV and Diploma in Commercial Finance, many new-to-industry brokers will, over time, join CAFBA with the right credentials to be professional commercial brokers. As of 1st July 2020, CAFBA also introduced a new category of membership called Provisional Member, to cater for those members who needed to obtain the new educational requirement of the Diploma. Provisional members have 12 months to meet this higher educational standard.

Equipment Finance Industry Aggregates Volume ($bn) 2019/20 2020/21 General Equipment Finance $38.9 $34.0 Fleet leasing $6.7 $6.4 Total Equipment Finance $45.6 $40.4

General Equipment Finance

Receivables ($bn) 2019/20 2020/21 $86.7 $80.6

Data sourced from Australian Finance Industry Association (AFIA)

9. CAFBA Women in Leadership Scholarship Program

8. CAFBA Membership

A core strategy of CAFBA is to increase the representation of women in commercial finance. One of CAFBA's greatest achievements over the past several years has been the success of the Women and Leadership Australia (WLA) Scholarship Program.

CAFBA membership again grew throughout the 20202021 financial year, during a difficult period. Whilst this in some way reflects the decision to expand membership to all commercial brokers, it also reflects many existing brokers’ view that CAFBA is more aligned to their activities, and better represents the issues that a commercial finance broker faces. Hence many new members have joined from other associations.

This is the sixth year in which CAFBA has undertaken this initiative, and so far fifty-nine women have completed the courses, with outstanding success. The recipients of these scholarships over the last six years have spoken about how beneficial the program has been, both personally and professionally. From 2017 2020, CAFBA female membership increased from 8% to 27%, and we believe these programs have significantly contributed to this uptake.

The aim of the WLA courses is to unlock the potential of women working in commercial finance by providing opportunities for them to learn from women in leadership roles within finance and other industries, so

17

Annual Review 2020-2021

The importance of framing conflict in a positive light and seeing conflict as an opportunity resonated with me. I am also inspired by the thought of building trust by creating safe spaces for engagement with conflict.

that the commercial finance industry can better reflect the community we serve.

The scholarships are arranged through WLA, and the courses are conducted in conjunction with the Australian School of Applied Management. The scholarships were available to women across WLA's three leadership development programs. The scholarships cover part of the cost of the course, however, as in the past, we needed sponsors to assist with the balance of the program fees. CAFBA can only provide these scholarships with the assistance of our affiliate members, and we are incredibly grateful to the following who generously invested in these scholarships this year:

The course so far has allowed me to develop my ability to influence others by nurturing their strengths and talents. It has also given me the courage to work and perform outside of my comfort zone. The building of the “toolkit” to allow me to better navigate adaptive challenges and lead authentically is priceless and will be used throughout the rest of my career.

Apart from the continuous self-development, I listed my top 5 learnings to date:

· Flexicommercial · NAB

· Embrace a transformational 'leader as learner' mindset.

Denise Jackson

· Employ data to track the progress of individual and collective growth.

It was a great honour to be awarded a scholarship and take part in the WLA Executive Ready Program. I really would like to thank CAFBA for giving me the opportunity to take part in the course.

· Identify and respond to the challenges facing female leaders. · Apply the learning gained from scenarios and adaptive leadership principles to broader contexts. · Facilitate leadership growth in others.

“Thanks to all the sponsors and to CAFBA for providing me with the opportunity to participate in a highly relevant and beneficial education programme”.

The course content was very relevant to developing my leadership skills and it has given me confidence in myself as a leader. The course participants were inspirational, from various industries and stages of their careers. Learning from their experiences was invaluable and I formed some wonderful relationships.

Michelle Towt I found the WLA Leading Edge program to be really well composed and presented. I liked the flow of each module and found the content to be very thought provoking, impactful and interesting. I particularly enjoyed the live webinars and workshop days.

I have learned a lot from this course that I will apply in my career as I grow.

“I would highly recommend this course to anyone that is looking to develop as a Leader”.

Donelle Brooks

Our course facilitator, Lara, was a great facilitator and I really enjoyed listening to her personal stories and experiences. Lara has so much knowledge to share and is really genuine - I always looked forward to the insights she shared in the webinars and via feedback on submissions.

I was honoured and humbled to have received a CAFBA Scholarship to participate in the Advanced Leadership Program. When starting the ALP, I wanted to further develop my skills to be an effective leader and soon realised that by participating in this I was going to achieve so much more.

My absolute favourite part of the course was the reallife applications. It is one thing to be 'taught' the content, but it is another thing altogether to be

18

Annual Review 2020-2021

'taught' how to apply this to the real world. Leading Edge did a fantastic job of providing opportunities for both types of learning – this is the key that made all the difference in making this course so beneficial to me.

Rebecca Mansfield Being awarded one of the CAFBA Women in Leadership Scholarships has been an extremely thought provoking, educational and inspiring experience! I can't speak more highly of the program and the facilitators.

This program has helped me to feel more confident in myself and my abilities. It has helped me to look at leadership from a different perspective. It has helped me to 'back myself.' Lastly, it has provided me with countless opportunities to reflect, grow and assess what I really want from my career.

Over the past 10 months I have been undertaking the 'Advanced Leadership Program'. This program is a high-impact and challenging developmental course for elite female leaders.

“I would recommend the course to anyone looking to learn more about themselves and their leadership style”.

The course has been excellent so far. The content and the facilitators really encourage deep exploration of our own strengths and weaknesses. The content is at times confrontational and challenging, but the tools provided assist with developing critical thinking abilities to assist in unlocking our full potential.

Marie Boyagi I was fortunate enough to be selected as a recipient of the 2021 WLA Executive Ready scholarship program provided by CAFBA.

For me, this program could not have come at a more opportune time. I am going through a growth phase in my business, bringing on my first employees and scaling a business. The course has encouraged me to look first at myself, my values, my leadership style and what my role is. The course then takes you on a journey of how to be an authentic leader, how to encourage overall team wellbeing, communication styles for managing different types of employees and how to manage conflict and change. All these modules are topics I've heard about, but not spent the time to really deep dive into.

If I could describe the program in three words, it would be practical, relevant, and empowering.

It taught us lifelong skills like what it means to be a leader, how to communicate effectively, be present and have influence. What is great about these skills is that they can not only be applied in the workplace, but also in social and personal settings.

Amongst all of the insightful topics that we discussed throughout the course, the one that resonated with me the most was the “leading innovation and change” module. This was particularly valuable and timely, as I could apply the skills I learnt instantaneously to help our company rebrand from GetCapital to Shift.

I am so grateful for the opportunity to participate in this fantastic program. Not only will the skills I have learnt assist me now, but I can see that in the future, during different stages of my leadership journey, I will always refer back to the content for inspiration on becoming a more successful leader.

On top of the content, what I truly enjoyed about the course was the chance to meet the facilitators and an amazing group of women who also participated. They reminded me how important supporting each other on our individual journey is. It is through this support that we achieve the best outcomes we can. This was vital at a time where a lot of us were in lockdown and low on motivation.

Not only is the course content fantastic, but it's also the network of other successful, motivating women you meet. There is a diverse range of participants, from a range of industries and at various different stages in their careers. True inspirational women to be connected with.

This was an amazing and rewarding opportunity that would not have been possible without the support of CAFBA, the WLA and my organisation, Shift.

“Thanks CAFBA for this amazing opportunity.”

“If anyone is considering this course, I encourage you to take that step - it is one that you won't regret”.

19

Annual Review 2020-2021

The aim of CAFBA's Women's Networking Forums is to help women be cognisant of the career pathways available in commercial and asset finance, to feel supported and encouraged to take the next step in their career journey.

10. Women's Networking Forum

CAFBA recognises gender equality to be one of the biggest hurdles to shared prosperity in Australia.

The reality is that women amount to 46.9% of the workforce in Australia, 13.7% of chair positions, 25.8% of directorships, 30.5% of key management and 17.1% of CEO's. These figures show that women are still underrepresented in decision making levels across corporate and public sectors in Australia.

The greater diversity we can create within our industry, the more sustainable it will become and the more opportunities it will deliver, so it is important for women to join the scholarship programs and networking forums and play an active role in leading our industry.

The tools in these programs are designed to stretch women in commercial finance beyond their comfort zone. They challenge participants to develop their critical thinking abilities and unlock their full potential.

At the forums we welcome not only female brokers but also female support staff and female staff from lenders, so women in the industry can form their own networks and relationships and begin to break down the barriers women often find when entering the industry.

When a lack of diversity exists within any area of society, fundamental problems arise; when businesses, institutions or governments are not reflective of the communities they serve, they fail to serve them well.

It is no different in the commercial and asset finance industry.

When a lack of diversity exists, it can lead to incorrect assumptions being made about the needs of the sector we are serving.

From a business perspective, it is difficult to properly understand and service a community that doesn't have a voice. It also means the insights and opportunities that come from different perspectives are invariably foregone. Simply put, diversity makes good business sense.

While the Women's Networking Events continue to be a core fixture on the CAFBA calendar, this year, as part of CAFBA's Strategy and Implementation Plan 2021-2024, we established the Diversity, Inclusion & Digitisation Committee.

The committee was formed to address matters of equality, inclusion and diversity within the commercial finance industry to enable employees to reach their full potential, and to embrace diverse cultural perspectives which can spur innovation and creativity.

The objectives of the committee include educating our members on how to leverage the benefits of

20

Annual Review 2020-2021

diversity, inclusion and digitisation to maximise growth and opportunity within their firms; to create more resilient businesses that can both endure and drive change through diversity and inclusion; and to provide resources and professional guidance on all aspects of diversity.

and more diverse entrants into the profession, which includes young people. An important step to achieve this is to create an educational pathway for new entrants to professionally train and upskill to become commercial finance professionals. With the courses developed so far, the Certificate IV and Diploma, we have achieved a major component of this goal.

Another key component is to provide networking and support, which is the genesis of CLYP. CLYP continues to be extremely well led by Max McFarlane, and we thank him for his continued support.

Like everything, CLYP progress was hampered by COVID, although some in-person events were able to proceed, others were held virtually. Informative and educative sessions are being planned for 2022, together with the all-important networking.

The work of CLYP is essential to the succession plans of CAFBA and the industry, and their work is key to CAFBA's strategy of diversity.

11. CLYP Commercial Lending Young Professionals

CLYP (Commercial Lending Young Professionals) is CAFBA’s national networking group for people working in commercial finance who are under the age of 40. CLYP aims to connect and support young professionals in commercial finance through networking and professional development opportunities and foster generational change within the industry.

12. CAFBA Education Council

The CAFBA Education Council was founded in 2020 as a joint initiative between CAFBA and some of the leading financiers in the Australian commercial finance market. Established to oversee the structure, content and delivery of education in the commercial finance sector, the Education Council's aim is to advance education as a means of best practices for the industry.

The need for an educated commercial finance sector with designated credentials has never been greater. In the aftermath of the Royal Commission into banking and the financial sector, and operating in a selfregulating industry, education plays a key role in demonstrating the ability of our industry to uphold professional standards.

The Education Council expands CAFBA's professional education program with the introduction of the Certified Lease & Finance Professional (CLFP) designation, the preeminent credential for equipment leasing and finance professionals throughout the world. CLFP designees demonstrate competency through testing of knowledge, continuing education and a commitment to their business practices and dedication to the industry.

CAFBA recognises that the commercial finance industry is aging, and a core strategy is to attract new

Previously it took a trip to the United States to sit the examination which related to US legislative, legal, and accounting standards. CAFBA negotiated with CLFP to

21

Annual Review 2020-2021

obtain the rights to create Australian content for this internationally recognised designation. Converting the US curriculum was acknowledged to be a massive undertaking and the funding required was received from major industry stakeholders. With great thanks to them the Australian CLFP process is underway.

Traditionally, professional organizations such as CPA and CA accounting bodies lend weight to professional qualification by requiring additional development and training, and it is CAFBA's goal for the Education Council to continue to expand and tailor its professional education program.

By their nature, these credentials require annual updates and certified professional development activities to maintain professional accreditation.

Universities tend not to focus on these aspects and generally deliver the baseline qualification – post nominal – with an expectation that graduates join a professional association.

The courses are: ·

Certificate IV in Financial Services (FNS41815): Specialising in Commercial & Asset Finance

·

Diploma of Financial Services (FNS51815) Complex Issues in Commercial Lending

·

An Australianised version of the US Certified Lease and Finance Professional course

In formulating the curriculum content, CAFBA evaluated several Registered Training Organisations programs and capabilities. The overarching philosophy was to provide a learning program that had practical outcomes and was relevant to industry best practice. Initially we began reviewing several RTO's training material, however, it became clear that the content was not rigorous enough to meet our objectives and standards. After further consultation with industry participants, we were introduced to the Institute of Strategic Management (ISM), and began scoping the course content, which quickly became apparent would meet our educational requirements.

CAFBA and ISM subsequently formed a partnership to deliver industry relevant curriculums. With this development CAFBA also organised lender roundtables to ensure the curriculum met the needs of the lender and was relevant for their staff. This input was invaluable in formulating the final content. It is essential that the industry has recognised qualifications that reflect knowledge and experience.

The term “education” has become popular over the past few years but it must be the right education.

Lender seminars and workshops (or masterclasses) are important to increase knowledge, but they only go

part of the way. They cannot be the substitute for a formal education stream.

We also believe that by offering credentials we provide a structured career path into the commercial and asset finance profession which will help attract new and more diverse entrants. CAFBA's research showed that expanded educational offerings can attract a new generation of commercial financiers for whom a credential is a necessary first step. Gen Y and millennials are attracted to a profession that offers a credential and structured career path.

The Education Council is made up of representatives of the Foundation Partners, who, along with CAFBA, include Commonwealth Bank of Australia, National Australia Bank, Westpac, FAST, Scottish Pacific, AFG, Get Capital, Connective, Flexi Commercial, Macquarie Bank, and Australian Finance Industry Association.

These members work together in alignment as key industry participants to foster education as a foundation to facilitate professional standards and maintain trust within our sector. The goal of The Education Council is for Lenders and CAFBA to have better educated and professional workforces, leading to better customer outcomes.

The Education Council will continually review content in all courses to ensure compliance, relevance and continued development, and investigate a structured mentoring program to ensure any new entrant is educated, qualified and capable to effectively deliver the commercial finance product.

As the education programme is industry specific, not broker specific, our industry partners sit on committees for content, course development, mentor programme development, government traineeships, CLFP conversion and finance. We are also creating an online portal for the recording and certification of Continuing Professional Development (CPD).

There is much to be done and we greatly appreciate the tremendous support we have received. Our end goal is to create an education programme of rigorous scholarship resulting in commercial and asset finance participants who best serve Australian businesses.

13. Awards This year we had grand plans to hold the Annual Conference and Awards night in August in Melbourne.

With the Covid outbreaks in the middle of the year we decided to postpone the event to November, but unfortunately Covid again changed these plans. The 2021 CAFBA Awards were therefore held virtually in November with a lavish online production. Although we

22

Annual Review 2020-2021

could not meet in person, the Virtual Awards were a terrific event to honour the work of those in our industry who have excelled over the past year. CAFBA would like to congratulate all the award winners and nominees and thank this year's sponsor Westpac for their invaluable support. We would also like to pay tribute to our events team whose expert ability to adapt to the changing landscape imposed by Covid-19 restrictions was crucial to the success of the 2021 Awards. If you missed the event, hosted by the wonderfully funny Michael Pope, make sure to catch some of the highlights which will be featured on CAFBA's social media accounts.

important service to the broker community. CAFBA recognises this contribution and works closely with the financiers for the benefit of the commercial and equipment finance industry.

The Financier of the Year award is keenly sought by the commercial finance lenders. The voting categories of these awards have remained the same since their inception. The categories to vote on the Financier of the Year are: • Service • Documentation

Joel Quartermaine

Pacific Finance Aust

Second

Paul Drummond

Translease

Third

Sean Fowler

Equipfin

Gino Defeo

Second Jake Girke Third

Milena Franjic

Quantum Business Finance Access Capital

Women in Leadership Milena Franjic

QPF Finance Group

Second

Tina Clarke

Laurentide Financial Services

Third

Sharon Piening Yakka Financial

Second

iFin Capital Group

The 500 Group

Stamford Capital Australia

Second

Quantum Business Finance

Third

Ledge Finance

Broker Firm of the Year (less than 5 business writers)

Metro Finance

Third

FlexiCommercial

First

Metro Finance

Second

Westpac Equipment Finance

Third

Angle Finance

First

Metro Finance

Second

BOQ Finance

Third

FlexiCommercial

First

Connective

Second

COG Aggregation

Third

FAST

FinTech of the Year

Broker Firm of the Year (more than 5 business writers) First

Second

Aggregator of the Year

Emerging Broker Firm of the Year First

Westpac Equipment Finance

Credit Team of the Year

Queensland Pacific Finance

First

First

Settlement Team of the Year

Emerging Broker of the Year First

Attitude Pricing

Financier of the Year

Broker of the Year First

• •

First

Get Capital

Second

Moula

Third

Prospa Advance

CAFBA would like to congratulate not only the recipients, but all our Affiliate Members for their contribution.

First

Danforth Finance

Second

The 500 Group

13.2 BDM of the Year

Third

Geeps Financial Services

CAFBA also awards a Business Development Manager (BDM) of the Year in each State, to acknowledge the work and service that the BDM's of the Lenders provide to the commercial brokers. Over time we believe this award will become just as prestigious and as keenly sought as the Financier of the Year.

13.1 Financier of the Year CAFBA surveys members annually to ascertain the CAFBA Financier of the Year. All the major Australian financiers are Affiliate Members of CAFBA, who provide an

23

Annual Review 2020-2021

New South Wales First

Courtney Brush

Angle Finance

Second

Patrick Netrayana

FlexiCommercial

Third

Jamie Mercer

NAB

First

Nicholas Gleeson

Westpac

Second

Tony Nichol

Metro Finance

Third

Mykolas Kalacius

FlexiCommercial

Queensland

South Australia First

Hayden Lever

Westpac

Second

Gary Walker

BOQ Finance

First

Nathan Evans

Angle Finance

Second

Chris Vogias

Capital Finance

Second

Narelle Bruni

Pepper Money

Victoria

Western Australia First

Tony Salvia

CBA

Second

Damian Hatchley

NAB

Third

Wayne O’Brien

ScotPac

Tasmania First

Jim Giles

ANZ

24

Annual Review 2020-2021

Awards

Broker of the Year Joel Quartermaine

WA BDM of the YEAR Tony Salvia

SA BDM of the Year Hayden Lever

TAS BDM of the Year Jim Giles

NSW BDM of the Year Courtney Brush

QLD BDM of the Year Nicholas Gleeson

25

Emerging Broker of the Year Gino Defeo

VIC BDM of the Year Nathan Evans

Women in Leadership Milena Franjic

Annual Review 2020-2021

PD Days

SA PD Day at National Wine Centre of Australia Adelaide

NSW PD Day at Parkroyal Parramatta

QLD PD Day at Victoria Park Herston

VIC PD Day at Crown Towers Southbank

WA PD Day at Hyatt Regency Perth

26

Annual Review 2020-2021

NSW Golf Day

27

Annual Review 2020-2021

NSW Golf Day

28

Annual Review 2020-2021

Financial Summary Statement of Financial Position as at 30th June 2021 2021 $

2020 $

976,034

716,191

24,595

825

55,292

38,525

Total Current Assets

1,055,921

755,541

Total Assets

1,055,921

755,541

NOTE

Current Assets Cash Assets Receivables Prepayments

3

Current Liabilities Creditors & Accrued Expenses Income Received In Advance Income Tax Payable GST Liabilities

23,499

9,496

473,701

356,295

26,236

18,203

25,805

20,695

Total Current Liabilities

549,241

404,689

Total Liabilities

549,241

404,689

Net Assets

506,680

350,852

Equity Retained Surplus

506,680

350,852

Total Equity

506,680

350,852

29

Annual Review 2020-2021

Statement of Profit or Loss and Other Comprehensive Income for the Financial Year ended 30th June 2021 2021 $

2020 $

1,059,960

959,316

(70,980)

(256,053)

(19,355)

(32,665)

(6,200)

(3,000)

(93,069)

(97,401)

(37,177)

(19,635)

(288,216)

(266,998)

(27,784)

(38,607)

(47,379)

(27,839)

(75,790)

(97,810)

(48,810)

-

(49,366)

-

(77,067)

(77,067)

(877,896)

(917,075)

Surplus before Income Tax

182,064

42,241

Income Tax attributable to Operating Profit/(Loss)

(26,236)

(18,203)

Operating Profit/(Loss) after Income Tax

155,828

24,038

Total Comprehensive Income

155,828

24,038

NOTE

Revenue from Ordinary Activities

2

Award and Conference Expenses Consultancy Fees Donations Event Expenses Professional Development Professional Fees Project Expenses Promotion Expenses Scholarships & Education Education Council Funding Employee Benefits Expense Administration Expenses Total Expenses from Ordinary Activities

30

Annual Review 2020-2021

Statement of Changes in Equity for the Financial Year ended 30th June 2021 2021 $

2020 $

Balance at the beginning of the Financial Period Total Comprehensive Income attributable to the entity Transfer from Members Funds Reserve

350,852

326,814

155,828

24,038

–

–

Balance at the end of the Financial Period

506,680

350,852

Equity Retained Surplus

31

Annual Review 2020-2021

Statement of Cash Flows for the Financial Year ended 30th June 2021 2021 $

2020 $

1,158,401

1,233,562

305

1,551

(18,203)

–

(880,660)

(1,003,311)

Cash Flows from Operating Activities

259,843

231,802

Cash Flows from Financing Activities

–

–

Cash Flows from Investing Activities

–

–

Net Cash Inflows/(Outflows)

259,843

231,802

Opening Cash on Hand Net Cash Inflows/(Outflows)

716,191

484,389

259,843

231,802

Cash at end of Financial Year

976,034

716,191

NOTE

Cash Flows from Operating Activities Receipts from Members and Others Interest Received Income Tax Paid Payments to Suppliers and employees

32

Annual Review 2020-2021

CAFBA Honour Board CAFBA Financier of the Year AAFA/CAFBA Award Winners

PAST PRESIDENTS 2008/09

David Gandolfo

2009/10

David Gandolfo

2010/11

Mark Rayson

2011/12

Mark Rayson

2012/13

Terry Moody

2013/14

Terry Moody

2014/15

Terry Moody

2015/16

David Gandolfo

2016/17

David Gandolfo

2017/18

David Gandolfo

2018/19

David Gandolfo

2019/20

David Gandolfo

2020/21

Matthew Atkin

1999

CBFC

2000

CBFC

2001

Suncorp Metway

2002

Westpac Equipment Finance

2003

Westpac Equipment Finance

2004

Macquarie Leasing

2005

Capital Finance Australia

2006

BOQ Equipment Finance

2007

BOQ Equipment Finance

2008

Westpac Equipment Finance

2009

BOQ Equipment Finance

2010

Macquarie Leasing

2011

Macquarie Leasing

2012

Capital Finance Australia

2013

Macquarie Leasing

2014

Westpac Equipment Finance

2015

Westpac Equipment Finance

SERVICE TO THE INDUSTRY AWARD

2016

Westpac Equipment Finance

2014

Geoff Wallace

2017

Westpac Equipment Finance

2016

Joe Terlato

2018

Capital Finance

2017

Ron Hardaker

2019

Westpac Equipment Finance

2017

John Bills

2020

Westpac Equipment Finance

2019

Barry Clarke

2021

Westpac Equipment Finance

2020

Phil Botsis

LIFE MEMBERS 2013

Terry Moody

2013

David Gandolfo

2013

Kathryn Bordonaro

Contribution to CAFBA Award 2014

Glenda Boschert

2018

Daryl Raggatt

2019

Mark Caddy

2019

Greg Moylan

33

Annual Review 2020-2021

Commercial & Asset Finance Brokers Association of Australia

CONTACT DETAILS Registered Office: Level 3, 33-35 Atchison Street, St Leonards NSW 2065 Mail Address: PO Box 576 Crows Nest NSW 1585 Auditor: Paul Andrew Fox, Registered Company Auditor No 295584 PO Box 552 Dromana VIC 3936 Legal Counsel: Steve Edwards - CreditWise Pty Ltd ABN 55 097 768 799 14 Haigh Place Castle Hill NSW Australia 2154 Telephone: 02 9885 7097 Follow us on Twitter @CAFBA1

Join us on