The National Association of Commercial Finance Brokers (NACFB) has amended 94% of lender agreements to protect brokers.
The trade body said it has changed 131 broker agreement forms from lenders in the past year, “addressing systemic imbalances in contractual terms that disproportionately burdened brokers”.
The initiative is spearheaded by a dedicated contract specialist and ensures fairer risk-sharing and clearer obligations across the commercial finance sector.
The NACFB introduced a contract review role in 2023 to “tackle growing concerns over opaque and inequitable clauses in broker-lender agreements”.
The reviews shows “widespread issues”, according to the trade body, from “ambiguous dispute resolution processes to overly punitive liability terms”.
The NACFB said that by working directly with lenders, which includes 98 existing patron lenders and 33 new entrants, the trade body has “rewritten or clarified clauses in nearly all agreements reviewed.”
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Sarah Cunningham, NACFB’s head of compliance, said: “The NACFB observed how brokers were increasingly bearing risks beyond their control, stifling their ability to serve SMEs effectively. We dedicated specific resource to ensure agreements align with regulatory standards and mutual accountability. Our efforts have not been about diminishing broker responsibilities – more about creating greater fairness and clarity so all parties can thrive.
“By standardising notice clauses and refining monitoring requirements, the trade body has sought to reduce procedural friction. The NACFB’s model prioritises partnership over confrontation. Lenders receive tailored recommendations to amend terms, with some even adopting the trade body’s own template to pre-empt inequities.”
Jim Higginbotham, NACFB’s CEO, added: “Fair agreements are the foundation of a healthy commercial finance ecosystem. When brokers and lenders share risks transparently, SMEs gain faster access to capital, fuelling economic growth. We’re really proud of this work; it underscores our role as a unifying force – ensuring no party is unfairly disadvantaged.
“With the Supreme Court ruling on broker commission disclosure and informed consent expected in the first half of the year, commercial lenders will likely look to make further addendums to their introducer agreement. The team will be on hand to review any changes through the appropriate lens to ensure fair and transparent expectations for brokers.”
Earlier this month, Colenko became the latest firm to join the NACFB.
