What does a business loan broker do?
A commercial finance broker acts as an intermediary between a business seeking finance and the lenders who provide it. Rather than applying to each lender individually, you apply once through a broker and they match you to the most appropriate lenders from their panel.
A good broker:
- Assesses your business’s eligibility across their lender panel
- Recommends the most appropriate product type (term loan, MCA, invoice finance and so on)
- Submits your application to matched lenders
- Manages communication with lenders on your behalf
- Presents offers and explains the terms clearly
In the UK, commercial credit broking to incorporated businesses (Ltd companies) sits outside the FCA regulated perimeter. Reputable brokers are typically members of the NACFB (National Association of Commercial Finance Brokers).
Do business loan brokers charge fees?
Most business loan brokers earn their fee from the lender, not the borrower. The lender pays the broker an arrangement fee on funding, typically 2–7% of the loan amount. You usually pay nothing to apply through a broker.
Some brokers also charge the borrower an origination or arrangement fee. Ask explicitly before applying whether there is any cost to the business.
Fundably charges businesses nothing to apply. Our fee comes from the lender on completion.
What should you look for in a business loan broker?
Lender panel size: a larger panel means more options and potentially better rates. A broker with 50+ lenders covers significantly more credit appetites than one with 10.
Product breadth: does the broker cover term loans, MCAs, invoice finance, RBF, asset finance and startup loans, or only one type? A broker with limited product breadth may direct you to a product that isn’t the best fit.
NACFB membership: check the broker is a NACFB member (the National Association of Commercial Finance Brokers maintains a public membership directory). NACFB membership signals adherence to a code of practice on disclosure, suitability and complaints handling.
Speed: how quickly do they present initial offers? The best brokers return indicative offers within hours of a completed application.
Soft vs hard search: confirm the initial application uses a soft credit search. Hard searches at the matching stage can affect your credit score unnecessarily.
Transparency: do they clearly explain what commission they earn from lenders? A reputable broker discloses this.
Major UK business loan brokers at a glance
| Broker | Lender panel | Application cost to business | Turnaround |
|---|---|---|---|
| Fundably | 50+ | Free | Hours |
| Funding Circle | Direct lender | Free | Days–weeks |
| Capitalise | 100+ (via platform) | Free via accountants | Hours |
| Swoop | 1,000+ sources | Free | Varies |
| iwoca (direct) | 1 (itself) | Free | Hours |
| Tide (Funding Options) | Multi-lender | Free | Hours |
What do you need to apply through a broker?
- Company registration number
- 3–6 months business bank statements (or Open Banking link)
- Approximate monthly / annual revenue
- Amount required and purpose
- Whether your business has any existing finance outstanding
Most reputable brokers complete the initial matching with a soft credit check, with no impact on your credit score. Fundably’s broker panel covers term loans, MCAs, invoice finance, revenue-based finance and asset finance, so you can compare business loans across every major product type in one application.
How long does broker matching take?
Fundably typically returns indicative offers within hours of a completed application, since the platform checks your business against 50+ lender criteria in parallel rather than submitting one application at a time. A single direct application to one lender can take anywhere from a few hours to several days for a decision, and if that lender declines you, you then have to start the process again elsewhere. Going through a broker with a large panel removes that sequential delay: instead of applying, waiting, and re-applying, you see the range of offers available across the whole market in one pass.
Turnaround varies by product. Straightforward unsecured term loans and MCAs are usually the fastest to quote, often same-day. Asset finance, invoice finance and larger secured facilities typically take longer because the lender needs to review collateral or existing debtor books, so expect a few days to a couple of weeks for those product types even through a broker.
What red flags should make you walk away from a broker?
Not every business loan broker operates to the same standard. A few warning signs are worth checking for before you share your bank statements or sign anything:
- Upfront fees before any offer is made. A legitimate broker earns its fee from the lender on completion, not from you before you’ve seen a single offer.
- No NACFB membership and no public panel of lenders. If a broker can’t name who they work with or point to a trade body membership, you have no way to verify their claims.
- Pressure to accept an offer quickly without time to compare it against alternatives, especially on factor-rate products like MCAs where the true cost of credit is easy to obscure.
- Vague answers about whether the initial check is a soft or hard search. This should be a simple, direct answer — see our guide on soft versus hard credit checks for why this matters.
- No dedicated point of contact. A broker who can’t tell you who is handling your application, or takes days to respond, is unlikely to move quickly once you need a decision.
A broker that is transparent about its panel, its fees and its process is generally a safer bet than one that is vague on any of these points.
Apply through Fundably to compare business loan offers from 50+ lenders.
