What is a broker fee, and who pays it? — Answers

2 min read

Fee or commissionSometimes both

Ask how they're paidBefore you engage

Can add to costFee on top of the loan

Disclosure mattersGet it in writing

How brokers get paid

A commercial finance broker earns money in one of three ways: a fee paid by you, a commission paid by the lender when a deal completes, or a combination. None is inherently wrong, but each creates a different incentive. A lender-paid commission can, in principle, nudge a broker toward the deal that pays them most rather than the one cheapest for you — which is why disclosure is essential.

Why you should ask up front

A good broker will tell you plainly how they are remunerated and disclose any commission before you commit. If a broker is evasive about their fees, treat that as a warning. You want to know: is there a fee to me, how much, when is it payable, and does the lender also pay you? The answers let you judge whether their recommendation is aligned with your interest.

Weighing broker cost against benefit

A broker can add real value — access to lenders you would not find alone, packaging your application well, and negotiating on your behalf. But their fee is part of your total cost of borrowing and belongs in the comparison. A deal sourced by a broker with a 3% fee is only better if it beats what you could get directly by more than that fee. You can always apply direct: Credicorp takes applications directly, with no broker fee.

Fold any broker fee into the total with the true cost calculator, and read broker or direct.

Frequently asked questions

Can I avoid a broker fee by applying directly?

Yes — applying directly to a lender means no broker fee, and many lenders including Credicorp accept applications direct. The trade-off is that a broker may access lenders or terms you would not find alone. Weigh the broker's fee against the benefit; if you already know the lender you want, going direct saves the fee entirely.

Is a broker legally required to disclose commission?

Commercial lending to limited companies sits outside much of the consumer-credit rulebook, so disclosure obligations are lighter than in regulated retail finance. That makes it more important to ask directly. A reputable broker will disclose commission willingly; reluctance to do so is a reason to look elsewhere or apply direct.