What Is the NACFB and Why Does It Matter?
Kyrelos Khir
Manager · May 19, 2024 · 5 min read
The NACFB (National Association of Commercial Finance Brokers) is the UK's trade body for commercial finance brokers. Membership indicates that a broker has met the association's standards for professional conduct, regulatory compliance, and client treatment. Here is what it means and why it is relevant when choosing a broker.
Ready to compare your options?
Check your eligibility across 100+ UK lenders in 60 seconds.
What the NACFB does
The NACFB represents over 2,000 commercial finance brokers and 100+ lenders in the UK. It sets standards of professional conduct for its members through its code of practice, which includes requirements around FCA compliance, transparent fee disclosure, professional indemnity insurance, and fair treatment of customers. Members are subject to regular reviews against these standards.
The NACFB also provides market intelligence, professional development, and an accreditation framework for individual brokers and their staff. It lobbies government and regulators on behalf of the commercial finance broking sector and maintains relationships with the major lender associations.
Does NACFB membership matter?
NACFB membership is not a regulatory requirement; FCA authorisation is the legal baseline. However, NACFB membership signals an additional voluntary commitment to professional standards above the regulatory minimum. Many lenders on the commercial finance market prefer to work with NACFB member brokers, which can affect access to certain products and lender relationships.
When evaluating a broker, NACFB membership alongside FCA authorisation gives you additional confidence in their professional standing. It does not guarantee quality of service, but it provides an additional accountability structure. Spark Finance is an NACFB member and FCA authorised (FRN 958123).
"FCA authorisation is the legal floor. NACFB membership sits above it as a voluntary professional standard. Together they represent the baseline you should expect from any reputable commercial finance broker."
- Kyrelos Khir, Manager
The bottom line
When choosing a business finance broker, verify FCA authorisation on the FCA Register and look for NACFB membership as an additional indicator of professional standing. Spark Finance meets both criteria.
Check your eligibilityAbout the author
Kyrelos Khir
Manager
Kyrelos is a finance manager at Spark Finance with a focus on invoice finance and working capital solutions for UK businesses. He helps businesses in professional services, recruitment, and manufacturing unlock cash tied up in their debtor books through factoring and discounting facilities.
