How much do business loan brokers charge?

Many are paid a commission by the funder, commonly a few percent of the amount funded, which is part of the cost of the financing. Some also charge the business a fee. A reputable broker says which, and how much, before you sign.

How can I tell if a business funding broker is legitimate?

A legitimate broker reads your statements before talking about approval, names the funder behind each offer, puts the full cost in writing, and does not ask for money before an approval. Be wary of guarantees and same-day pressure.

Do brokers get better terms than going direct?

Sometimes. A broker who places a lot of business with a funder, and who sends a complete file, can often get a faster answer and better terms than a first-time applicant would. The comparison of several offers is where most of the value is.

Should I use a broker or go straight to a lender?

Go direct when the right lender is obvious and you clearly qualify. Use a broker when your bank has declined, the need is unusual, or you want several offers compared.

Guides

Business loan broker or direct lender?

Going straight to a lender makes sense when you already know which one fits and you qualify comfortably, such as your own bank for a loan it wants to make. A broker earns its place when the right funder is not obvious: when the bank has said no, when the need is unusual, or when you want several offers compared side by side. A good broker tells you how they are paid and puts the full cost of each option in writing.

Updated October 29, 2026

What a broker does

A broker takes one application to the funders most likely to approve it, on the terms that fit, and compares what comes back. The value is in knowing which funders take which kinds of business, and in presenting the file so that it is decided quickly. A broker does not lend; the funder approves, closes and funds.

When a direct lender is the better route

If your bank knows the business, the request is ordinary, and you clearly qualify, going straight to the bank is often simplest. The same holds for a well-known online lender whose product is exactly what you need.

How brokers are paid

Most brokers are paid by the funder when a financing closes, as a commission on the amount funded, and that commission is part of the funder's cost of the deal. Some brokers also charge the business a fee, at application or at closing. Either way, a reputable broker will tell you how and by whom they are paid before you sign. Hollis Bay Capital may receive compensation from the funding providers whose financing it arranges, and the terms we present show the full cost of each option.

Warning signs

A fee is required before any approval
Approval is guaranteed before anyone has read your statements
You are pressed to sign the same day
The broker will not say which funder is making the offer
The terms are not put in writing
You are told to stop paying your current funders

Questions owners ask

How much do business loan brokers charge?: Many are paid a commission by the funder, commonly a few percent of the amount funded, which is part of the cost of the financing. Some also charge the business a fee. A reputable broker says which, and how much, before you sign.
How can I tell if a business funding broker is legitimate?: A legitimate broker reads your statements before talking about approval, names the funder behind each offer, puts the full cost in writing, and does not ask for money before an approval. Be wary of guarantees and same-day pressure.
Do brokers get better terms than going direct?: Sometimes. A broker who places a lot of business with a funder, and who sends a complete file, can often get a faster answer and better terms than a first-time applicant would. The comparison of several offers is where most of the value is.
Should I use a broker or go straight to a lender?: Go direct when the right lender is obvious and you clearly qualify. Use a broker when your bank has declined, the need is unusual, or you want several offers compared.

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