The National Association of Commercial Finance Brokers (NACFB) has reviewed 131 broker agreements from lenders over the past year, leading to amendments in 94% of contracts to create fairer terms for brokers.
The initiative, launched in 2023 with a dedicated contract review role, has tackled systemic imbalances that placed disproportionate risks on brokers.
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The review process identified widespread issues, including unclear dispute resolution mechanisms and overly punitive liability clauses. Working with 98 existing Patron lenders and 33 new entrants, the NACFB has successfully rewritten or clarified terms in nearly all agreements reviewed.
Sarah Cunningham, NACFB’s head of compliance, explained the motivation behind the initiative: “Brokers were increasingly bearing risks beyond their control, which limited their ability to serve SMEs effectively. Our focus has been on ensuring contracts align with regulatory standards and foster mutual accountability, rather than shifting responsibilities unfairly.”
The NACFB has prioritised practical improvements, including standardising notice clauses and refining monitoring requirements to reduce procedural friction. Some lenders have even adopted the trade body’s template to pre-empt contractual inequities.
NACFB CEO Jim Higginbotham highlighted the broader impact: “Fair agreements form the foundation of a healthy commercial finance ecosystem. When brokers and lenders share risks transparently, SMEs gain faster access to capital, supporting economic growth.”
With a Supreme Court ruling on broker commission disclosure and informed consent expected later this year, further amendments to introducer agreements are likely. The NACFB has committed to reviewing any changes to ensure continued fairness and transparency for brokers.
