RED TAPE REDUCTION
In carrying out its mission and statutory object, the CEFC makes finance available to Australian business that would not otherwise exist. To that end, the CEFC-administered legislation (the CEFC Act) is a net benefit to business.
The CEFC conducts its business like a commercial enterprise, such as a bank. The CEFC can talk to clients about their proposals at any stage of the investment process. Applications for finance can be accepted at any time, and the CEFC keeps application forms as simple as possible. Where the CEFC runs funding rounds and tender requests and the process doesn’t suit, proponents are free to pick up the phone or lodge an application outside the process via the website.
To avoid wasting precious CEFC and client funds, much of the documentation and diligence necessary to support a transaction (sometimes totalling in the hundreds of thousands of dollars) is only performed after the proposal is deemed eligible, viable and Board approved, but before it is contracted and any funds drawn.
In performing this diligence, the information the CEFC collects is typically the same that any diligent financier would seek before funding a project. Often the information requested is crucial to justifying the business case, and gives clients additional security that their project will succeed.
The CEFC is conscious that it is a young organisation and has adopted an approach of continuous improvement. Where the CEFC can automate and improve processes to reduce the burden on clients without compromising investment integrity, the CEFC will continue to do so.