Online Small Business Lenders Code
AFIA and Australia’s leading online small business lenders (OSBL) have come together to release a Code of best practice lending principles. The AFIA OSBL Code has been developed with support from the Australian Small Business and Family Enterprise Ombudsman, theBankDoctor.org and FinTech Australia.
The AFIA OSBL Code can be found here.
The AFIA Members having a code-compliant online small
business loan product are Shift, Lumi, Moula, OnDeck and Prospa.
Launched by AFIA in June 2018, the customer-centric Code supports small business borrowers by giving them a tool (the SMART Box™) to easily compare different online lenders’ small business loan product pricing using several metrics standardised in calculation and presentation and providing a clear and concise loan summary sheet before a loan is accepted so they can see the key features of a product.
The level of pricing transparency and disclosure provided by the internationally recognised SMART Box™ tool establishes a new
level of industry best practice in the small business finance segment. This proactive step was taken by the AFIA online lenders as they play an increasingly important role in the Australian economy by
providing much-needed access to credit for small businesses.
For more information about the Code email codes@afia.asn.au.
Code compliant members
Reporting a breach of the Code
You can report an alleged breach of the Code to the Code Compliance Committee (CCC).
The CCC does not provide a complaint resolution service in relation to individual disputes between customers and credit providers. You should contact your lender in the first instance as they are best placed to quickly resolve any concerns about your loan or credit product.
If you are not satisfied with the outcome you can complain to the Australian Financial Complaints Authority (AFCA) at www.afca.org.au or telephone 1800 931 678.
If you want to report an alleged breach of the Code, please use the below form or send an email setting out your contact details and information about your concerns to codes@afia.asn.au
Financial difficulty
If you are experiencing difficulty in meeting your financial obligations to your lender, you should contact them as soon as possible.
If you tell your lender that you are experiencing difficulty in meeting your financial obligations to them, they will work with you in good faith and in accordance with our policies to assist you to meet your ongoing financial obligations to us.
Our OSBL members will treat you fairly, respectfully and consider your specific circumstances. They may also initiate contact to discuss your financial situation. Your lender may do this by negotiating a new and mutually acceptable repayment arrangement with you, having regard to your financial circumstances as a whole at the relevant time as well as your obligations to us. They are not obliged, however, to do so.
If your lender cannot provide you with hardship assistance, they will advise you of your right to take the matter to AFCA.