Guide

How do business funding brokers get paid, and does it cost you?

Not by you. Introducers in this market are paid by the funding side — some per application introduced, some as a commission when a deal funds — and both arrangements are ordinary. What is never ordinary is being asked for money before you have any: an application fee, a processing fee, an insurance deposit. That is the oldest scam in this industry.

How the money actually moves

Money flows from the funding side, not from you. Depending on the arrangement, an introducer is paid when it passes on a qualified application, or when a funder writes the deal, or both.

The commission is a real cost and it is reflected in your pricing, in the sense that a funder prices a brokered deal knowing it pays a commission on it. That is worth understanding, not worth hiding.

Which is why the question worth asking is not whether someone is paid — everyone is — but who pays them, how many parties end up with your details, and whether they will tell you both without hedging.

The advance-fee scam

The pattern is always the same: an approval that seems too good, then a fee required before release. It is described as insurance, a processing charge, a first payment, or a good-faith deposit.

Legitimate funding takes fees out of the advance or builds them into the terms. Nobody needs money from you before you have money from them.

If you have paid one, report it to the FTC. It is a common enough fraud that reporting genuinely feeds enforcement.

What to ask any broker

Who pays you, and how much on this deal? A straight answer is a good sign; evasion is information.

How many funders will see my application, and will you tell me which? You are entitled to know where your details go.

How many companies will end up with my details, and can you name them? This is the question that actually predicts how many calls you get, and it is the one evasive operators dislike most.

Is there any fee I pay directly, in any circumstance?

Sources

Related questions.

Does using a broker cost me more than going direct?
Not usually in a way you can capture — funders price brokered and direct deals from the same sheet, and a broker shopping several funders often produces a better offer than one direct approach.
Are any upfront fees legitimate?
In small-business funding of this kind, essentially none. Some SBA and commercial mortgage processes have genuine third-party costs, but a broker asking for money to release an approval is not one of them.
How do I check someone is real?
Ask for the legal entity name and address, look for a real privacy policy naming who data is shared with, and search the name alongside the word complaint before you send anything.

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