What is a commercial finance broker?

Running a business comes with big decisions - one of the biggest is how to secure the right funding to grow, manage cash flow, or invest in new opportunities. 

But with so many lenders, financial products, and application processes, navigating business finance can feel overwhelming.

That’s where a commercial finance broker comes in. 

A commercial finance broker isn’t just a service - it’s an investment in your business’s future. 

By demystifying funding and unlocking opportunities, they could help you grow your business with confidence.

But what exactly do they do, and how could they help your business? 

In this article we’ve partnered with the National Association of Commercial Finance Brokers (NACFB) to help you learn more.

What is the role of a commercial finance broker?

Think of a commercial finance broker as a personal financial matchmaker for a business. 

They’re experts who work for you - not the lenders - to find tailored funding solutions for your business. 

Brokers have in-depth knowledge of the finance market, including loans, grants, and niche products a smaller business might not even know exist. 

Their job is to simplify the process, save you time, and connect you with the best options for your goals.

With bank branches closing across the country, the role of the traditional bank manager - someone who knew your business, understood your needs, and guided you through funding options - has largely disappeared. 

This sometimes means that it’s difficult for a smaller business to find the right person to speak to when it comes to understanding their finance options. 

You may even discover that your bank no longer offers a business finance service directly. 

If they do, they are only able to recommend their own products.

Unlike automated systems or one-size-fits-all solutions, brokers take the time to understand your business, connect you with the right funding, and support you every step of the way. 

That’s not to say they don’t use technology, they do, but crucially, a broker brings human expertise to business finance, making borrowing simpler, smarter, and tailored to your goals.

In short, a broker can act as your advocate, negotiator, and advisor - all rolled into one.

Why should I consider using a commercial finance broker to help my business? 

Securing funding isn’t just about filling out forms. 

It’s about strategy, relationships, and understanding the fine print. 

Here’s why brokers could be useful to your business:

• They could save you time and stress: brokers can handle paperwork, lender negotiations, and jargon-heavy terms, freeing you to focus on running your business
• They open doors: many specialist lenders (like those offering export finance or R&D tax relief) only work through brokers
• They could improve approval odds: brokers know what lenders look for and can structure your application to highlight your strengths
• They could be cost-effective: whilst brokers charge fees, their expertise often leads to better terms and could save your business money in the longer-term.

With in-depth business and industry knowledge, paired with direct connections to a vast array of lenders, a commercial finance broker could support your business to access the finance you need to grow. 

In fact, many owners of smaller businesses are unaware that they stand a greater chance of growing their enterprise, and growing it more quickly, with the right finance in place to support their ambitions. 

But with so many lenders and products on the market, it can be difficult to know where to start. 

That’s where a commercial finance broker could help. 

A good broker will take the time to find out about you, your business, and your aims and ambitions to help determine if borrowing is right for you, what type of finance might work best, and which lenders have the most suitable solutions. 

They will also assist a business when applying for finance and maintain support not just until the funds are in place but, beyond, to help you keep your business moving forward.

What types of finance can a broker help with?

Finance comes in all shapes and sizes. 

Some business owners rely on their personal assets, the generosity of family and friends, or credit cards to fund their business objectives. 

But there are other options, which may be more suitable or cost-effective, and that is where a commercial finance broker could be of assistance.

In whichever industry your business operates, a commercial finance broker could find the best solution for you. 

They can assist with a variety of business finance options, including:

• Working capital loans: helping with day-to-day cash flow needs
• Asset and leasing finance: funding to purchase or lease equipment, vehicles, or machinery
• Invoice finance: unlocking cash tied up in unpaid invoices
• Revolving credit facilities: withdraw funds as needed up to an agreed amount and repay them flexibly
• Commercial mortgages: also known as business mortgages, financing for your business premises or finance for
• Commercial investment mortgages – finance for commercial premises which you lease out to other businesses
• Trade finance – supporting businesses that import or export goods
• Unsecured business loans – flexible funding without the need for assets as security
• Short-term bridging loans – fast finance to bridge funding gaps, often used for property purchases or urgent business needs
• Buy-to-let (BTL) mortgages – specialist finance for property investors and landlords to finance residential property to let out
• Property development finance – specialist finance for property developers and builders to renovate, refurbish, or convert existing properties, or build new ones.

Not sure which finance option suits your business? That’s where a broker’s expertise comes in - they’ll assess your needs and recommend the right route.

How do brokers get paid?

Unlike other professional service providers such as lawyers, accountants, or surveyors, brokers are paid in a variety of different ways:

• some brokers charge you an upfront fee for their service and receive nothing from the lender
• some brokers charge you a fee for their service and receive a fee from the lender – this often happens if you have complex circumstances and/or borrowing requirements
• some brokers charge you nothing; instead, they receive a fee from the lender – this might be a flat amount or a percentage of the loan amount/borrowing
• some brokers may charge you an agreed percentage of the borrowing amount or proceeds of sale (where a business is being sold).

Whichever model is used, brokers should always be transparent about costs, so you are never left guessing how they are compensated.

Is it time to hire a broker? The signs your business is ready

How do you know if a broker could help? You might be ready to work with a broker if:

• you are planning to scale up or invest: expanding operations, buying equipment, or entering new markets often requires tailored funding. Brokers identify loans or grants aligned with your growth plans
• your cash flow gaps are disrupting operations: seasonal slumps, late invoices, or unexpected costs? Brokers recommend solutions like invoice finance or short-term loans to keep cash flowing. Learn more about how to address seasonal cash flow issues
• financial jargon makes your head spin: brokers translate complex terms and compare hundreds of products, so you don’t have to
• you have already been rejected for a loan: Brokers help rebuild your credit case and negotiate with lenders who value your business’s potential, not just your credit score. Learn about the steps you can take if you’re rejected for a loan
• you are unsure which type of finance you need: Asset finance? Business loan? Commercial mortgage? Brokers map your needs to the right solution. If you’re interested in learning which types of finance could solve your business challenge, read our Making Business Finance Work for You guide
• you lack the time to fill in applications: Let brokers handle the paperwork- from cash flow forecasts to lender follow-ups.

How does a commercial finance broker work with a finance provider?

With the decline of the traditional bank manager, many lenders now operate ‘broker panels’ – a group of preferred intermediaries who can present borrowing options to you and facilitate loan application transactions with the lender on your behalf. 

These brokers are pre-vetted by the lender to ensure a certain level of competence and reliability. 

In fact, lenders rely on their panel brokers to act as a type of quality control filter to improve the number of successful borrowing applications and reduce the time and effort spent assessing applications that get declined because the borrower does not meet the lending criteria.

For all types of loan, lenders require you to go through an application process, although the length and scope of this will vary. 

A broker will handle the application for you. 

Once you have discussed your business ambitions and borrowing requirements with your broker, using a combination of knowledge, skill and sometimes, sourcing systems, your broker will identify potential lenders and products. 

They then get to work with the lender to:

• discuss your requirements: to check that they are a good fit for your borrowing requirements
• get a ‘decision in principle’ (DIP): an initial, non-binding indication from a lender of how much they might lend you, based on your initial details and a soft credit check
• iron out any issues: which may arise at any stage both before and during the application process
• submit the application for you: including all the required supporting documentation
• keep the application on track: liaising with all parties to ensure your application progresses smoothly through identity and credit checks, underwriting, credit committee, approval, and draw down keeping you informed every step of the way.

How do I find a commercial finance broker?

You’ll find commercial finance brokers the length and breadth of the country, but how do you find one that’s right for you?  

• ask friends and family – for a recommendation
• search the internet – for a local list
• visit businessfinance.co.uk – a UK-wide directory of NACFB Assured commercial finance brokers.