What does a business loan broker do?
A business loan 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, etc.)
- Submits your application to matched lenders
- Manages communication with lenders on your behalf
- Presents offers and explains the terms clearly
In the UK, business loan brokers must be FCA authorised (or Appointed Representatives of an FCA-authorised firm).
Do 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.
How to evaluate a 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.
FCA status: check the FCA register (register.fca.org.uk) to confirm the broker is authorised. Never use an unregulated broker for business lending.
Speed: how quickly do they present initial offers? 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 to prepare before applying
- 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 — no impact on your credit score.
Apply through Fundably to compare business loan offers from 50+ lenders.