In the last financial year, AFCA received a record 4,648 small business complaints, with 2,063 related to finance. However, 21% of these finance-related complaints were closed because the lenders were not AFCA members, leaving business owners without recourse through the authority.
AFCA's lead ombudsman for small business, Suanne Russell, highlighted the growing concern over this trend, emphasizing the importance for SMEs to verify a lender's membership status before securing finance. Businesses can check a lender's membership through AFCA's online resources.
For small business owners, this serves as a crucial reminder to conduct thorough due diligence when seeking financing. Ensuring that a lender is regulated and a member of AFCA can provide a layer of protection and access to dispute resolution services if issues arise.
