Ask how they are paid before anything else
Fees come from three places: the lender, the borrower, or both. None of those is wrong, but you should know which applies before you share a single document. A broker who cannot answer plainly is telling you something.
Be careful with upfront fees. Charging for work before any offer exists shifts all the risk onto you. A success based model puts the broker on the same side of the table, because they are only paid when funding is actually in place.
Reach matters more than volume
Some brokers work with a handful of lenders who pay the best commission. Others hold relationships across banks, funds, leasing companies and specialist financiers. Ask how many providers they can approach for your specific structure, not how many they claim in total.
Then ask how they select. The answer should describe credit policy, sector appetite, ticket size and jurisdiction. If the answer is that they submit everywhere and see what comes back, expect a trail of declines.
What happens to your information
Your accounts, ledger and bank statements are commercially sensitive. Establish who receives them, whether anonymised summaries go out first, and whether any credit search happens without your consent. A properly run process presents a redacted summary to gauge appetite before full disclosure.
Multiple hard searches in a short window damage your position. A broker who understands the market will avoid them by qualifying appetite in conversation first.
Judge the questions, not the pitch
The strongest signal is the quality of the questions you get asked in the first call. Where does repayment come from, what does the cash cycle look like, what security is unencumbered, who are the largest customers and what is the deadline. Anyone leading with a rate before understanding the business is selling, not advising.
Ask what they would do if the request is not fundable in the form you have described. A credible answer involves restructuring the request, not pushing it out regardless.
Check the paperwork you sign
Read the terms of business for exclusivity periods, tail fees on lenders you already approached, and the definition of a successful introduction. These clauses decide what you owe if you complete elsewhere months later.
Confirm regulatory status where your jurisdiction requires it, and check that any commission received from a lender is disclosed to you in writing before you accept an offer.
Frequently asked questions
Should I pay a broker upfront?
You do not need to. Plenty of experienced firms, including ours, work on success terms only, with charges due once funding is in place.
Can I approach lenders myself as well?
You can, but tell your broker which ones. Duplicate submissions to the same credit team damage the request.
How much does a broker cost?
Typically one to three per cent of the facility, sometimes shared with a lender commission. Ask for the total in writing before you proceed.
Last reviewed: 2026-09-01