Brokers handed new playbook to spot SME stress early

CAFBA and the MFAA noted that small businesses account for more than 97 per cent of Australian firms and employ millions of people, at a time when many are juggling pressures across both their business and household balance sheets.

They said the pack would give brokers a more structured way to approach difficult conversations to help clients act before problems potentially harden into arrears, defaults, or forced exits.

What’s in the new broker toolkit

The two peak bodies noted that the joint resource set out practical prompts to open up conversations about emerging pressures, list early indicators of financial strain, and map out suggested next steps brokers can take when those signs appear.

Key themes running through the guidance include:

• Encouraging contact with clients earlier and more proactively.
• Recognising that business and personal finances are often tightly intertwined for small operators.
• Focusing on whether facilities are structured appropriately and sustainably.
• Watching for red flags such as persistent cash flow gaps, growing reliance on short‑term facilities, or mounting tax debts.
• Connecting clients with accountants, bookkeepers, or restructuring and insolvency specialists when issues sit beyond funding.

The document also highlighted the gatekeeping role brokers can play when clients are confronted with unsolicited, high‑risk offers, or potential scams.

Gandolfo says brokers see pressure build in real time

CAFBA chair of advocacy, David Gandolfo OAM, said the new material reflected what the industry had long observed on the ground – this being that brokers were often the first to spot shifts in a client’s position.

“Commercial and asset finance brokers are often at the frontline of supporting small businesses through periods of change,” he said.

“Brokers are uniquely positioned to see early signs of stress, whether that’s tightening cash flow, increased reliance on short-term funding or difficulty managing tax obligations.”

Gandolfo also underlined how much difference timing could make to the range of solutions available.

“By engaging early, brokers can help clients explore options such as restructuring, refinancing or adjusting funding strategies before those pressures become more acute and while there is still a broader range of options to address them,” he outlined.

Pannek: Advice and timing central to resilience

MFAA CEO Anja Pannek said the joint initiative recognised that small business finances rarely sat in neat silos and that brokers were increasingly being asked to help clients interpret that complexity.

“Small business clients often manage interconnected financial pressures across their business and household. In that environment, timing matters,” Pannek said.

“Brokers play a critical role in helping clients navigate that complexity, not just by arranging finance, but by helping them understand their options, manage risk and make more informed decisions.”

She added that the new resource was designed to turn that principle into a usable toolkit in day‑to‑day conversations.

“In a more complex environment, access to the right advice at the right time can make a meaningful difference,” she said.

“This resource is about equipping brokers with practical tools to support better conversations, earlier action and ultimately better outcomes for their clients.”

The resource is available to members via the MFAA and CAFBA websites.

[Related: MFAA touts 10-day discharges as productivity fix]