BRIDGING THE COMMERCIAL FINANCE SKILL GAP

A Strategic Roadmap for CAFBA Accreditation and Enterprise Structuring Mastery

Pillar 1: The Fundamental Shift

Residential is Consumer-Focused (NCCP/BID).

Commercial is Enterprise-Focused (Viability/Cash Flow).

The **Commercial Finance Skill Gap** demands specialized knowledge in business risk and loan structuring.

Pillar 2: Formalizing Expertise & Market Growth

31%

YoY Growth in Settled Value

($22.69 Billion)

7,023

Active Commercial Brokers

(24% YoY Increase)

Non-Banks

Ascendancy

Driving flexibility and tailored solutions.

CAFBA PACE Premium: The Core Knowledge Repository

  • •
    **Loan Structuring:** Beyond mortgages; tailored repayment cycles & secured/unsecured balancing.
  • •
    **Risk Assessment:** Mastery of full financial statements (Balance Sheets, P&L, Cash Flow).
  • •
    **Specialized Finance:** Development Finance (Build-to-Sell/Rent) & Asset-Based Lending (ABL).
  • •
    **Regulatory Compliance:** Adherence to non-NCCP obligations specific to commercial security.

Pillar 3: Strategic Asset Targeting ("Flight to Quality")

Lender appetite is highly stratified. Prioritize the highest-ranked sectors to maximize deal success.

#1

Industrial & Logistics

Infrastructure & Trade Growth

#2

Residential Build-to-Sell

Capitalizes on Housing Undersupply

#7

Office – Stabilised

Lowest Preference, Highly Selective

Pillar 4: Mastering Legal Risk & Security

The Exemption

The statutory **NCCP/BID** safety net is largely absent. Responsibility shifts entirely to the broker's self-imposed **professional standards** and expertise.

PPSA is Mandatory

For Asset-Based Lending (ABL) and equipment finance, **PPSA compliance is the operational step that validates security**. Failure to register exposes the loan to critical legal risk.

Pillar 5: Core Skill - Cash Flow Diagnosis

The Cash Flow Statement is the Single Most Important Document.

Profitability $\neq$ Liquidity (Capacity to service debt).

Structured Cash Flow Forecasting Checklist:

1.

Starting Point:

Opening Bank Balance (Establishes baseline liquidity)

2.

Cash Incoming:

Sales & Debtor Receipts (Assesses revenue reliability)

3.

Cash Outgoing:

Operating Costs (Evaluates necessary cost burden)

4.

Closing Balance:

Predicts future liquidity and ability to cover debt.

**Operational Efficiency Audit:** Proactive brokers stabilize cash flow by identifying and fixing poor habits (e.g., slow invoicing, lax debt collection) before approaching a lender.