A commercial finance broker arranges business finance on your behalf by matching your deal to suitable lenders on their panel. Brokers do not lend their own money. In most commercial deals the lender pays the broker a commission when the loan settles, and any fee that applies to you should be disclosed upfront and in writing.
What does a commercial finance broker actually do?
A broker scopes your funding need, packages the file for lenders, approaches the lenders most likely to say yes, compares the offers and manages the process through to settlement. The credit itself is always provided by the lender, not the broker.
The value is access and fit. Every lender has a different appetite for industries, deal sizes, security types and credit histories. A broker with a wide panel can match a deal to the lender whose criteria it actually suits, rather than you trying lenders one at a time.
How do commercial finance brokers get paid?
Most commonly the lender pays the broker a commission on settlement, usually calculated as a percentage of the amount funded. Some deals, particularly complex or time-intensive ones, may also involve a fee payable by the client.
Whichever applies, you should be told how the broker is paid before you proceed. Ask directly, and ask for it in writing. A broker who is paid only when your loan settles has a strong incentive to find a structure that actually gets approved.
When should a business owner use a broker instead of going to the bank?
A broker is most useful when the deal is not a simple fit for one bank.
- The bank has declined the deal or taken a long time to respond
- The deal is complex, such as an acquisition, property cash-out, ATO debt or a turnaround
- You want to compare several lenders without making several applications
- You need speed, or a lender type the major banks do not offer, such as invoice finance or private credit
Is a broker regulated in Australia?
Brokers arranging consumer credit must hold an Australian Credit Licence or be authorised under one, and must be a member of an external dispute resolution scheme such as AFCA. Commercial-only lending has a lighter regulatory footprint, so it is worth confirming a broker's licence, aggregator and dispute resolution membership before you engage them.
Finstead Capital Pty Ltd holds Australian Credit Licence 530764 and is a member of AFCA.
Frequently asked questions
Not usually. In most commercial deals the lender pays the broker a commission, so the rate and fees you are quoted are generally the same as going direct. Where a fee applies to you it should be disclosed upfront and in writing.
Related
General information only, not financial advice. Lender criteria vary and approval is at the lender's discretion. Finstead is a broker, not a lender. Last updated 2026-10-29.