Quick answer
To use a finance broker well for a business loan, check their credentials and dispute scheme membership, ask how many lenders they actually use for your type of loan and how they're paid, then give them complete, honest documents and a clear brief: amount, purpose, deadline and security. Let one broker run the file, ask for options in writing, and make the final lender decision yourself.
Key points
- Commercial brokers don't carry the mortgage broker best interests duty, so your vetting matters
- Ask how many lenders on their panel genuinely do your kind of loan, not the total panel size
- Most brokers are paid by the lender; some also charge you a fee, which should be agreed in writing
- A full, accurate pack on day one is the biggest thing you control
- Using several brokers at once usually means duplicate credit enquiries and confused lenders
A good broker can save you weeks and a few thousand dollars. A poor one can burn your credit file and your patience. The difference often comes down to how you choose and brief them, which is the part most owners skip. They ring the first name a mate recommends, send half the documents, and hope.
This guide sets out how to pick a broker, what to give them, how to keep the process on track and when going direct makes more sense. If you’re still deciding between the two routes, our head-to-head on using a broker versus a direct lender is the place to start.
What is a business finance broker’s job, exactly?
A broker sits between you and a panel of lenders. They work out what you need, match it to lenders likely to say yes, package the application, negotiate where there’s room, and manage the paperwork through to settlement. Many work under an aggregator, a larger group that provides their lender accreditations, software and compliance support.
What they don’t do is lend. They can only place you with lenders that will accept their submissions, and their knowledge of each lender’s appetite is the real product you’re buying.
Is a broker held to a best interests duty on a business loan?
This surprises a lot of people. Since 2021, mortgage brokers arranging home loans for consumers must act in the borrower’s best interests under the national credit laws. That duty sits inside the consumer credit regime, and credit used wholly or mainly for business purposes generally falls outside that regime. ASIC’s guidance on credit licensing explains that the National Credit Act and Code usually don’t reach business-purpose credit, even when the borrower is an individual.
So a broker arranging your equipment finance or unsecured working capital loan may not need an Australian credit licence at all, and isn’t bound by the home loan best interests duty for that deal. Plenty of excellent commercial brokers hold a licence anyway, belong to an industry body and behave exactly as if the duty applied. The point is simply that the law isn’t checking for you, so a few minutes of your own checking goes a long way.
How do you choose the right broker?
Treat it like hiring a contractor for a job you can’t easily redo. Interview two or three, and ask each the same questions.
Credentials and accountability
- Are you on the ASIC register? ASIC’s free professional registers search shows credit licensees and credit representatives. A business-only broker may legitimately not appear, but if they say they’re licensed, you can confirm it in a minute.
- Which industry association do you belong to? The main ones in Australia are the MFAA, the FBAA and, for commercial and asset finance, CAFBA. CAFBA and the MFAA both make membership of an external dispute resolution scheme a condition of joining.
- Which dispute scheme can I complain to? Usually AFCA. If they can’t name one, that’s a gap worth thinking about.
Fit for your deal
- How many lenders on your panel actually do this type of loan? A panel of sixty sounds impressive, but if only four do caveat loans or invoice finance, four is the real number.
- What share of your work looks like mine? A broker who mainly writes home loans may be less sure-footed with debtor finance or a second mortgage for a trust.
- Who will I actually deal with? Some brokerages hand files to junior staff after the first meeting. Fine, if you know.
Money
- How are you paid on this deal? Most commercial brokers receive an upfront commission from the lender and sometimes a trail. Some also charge the borrower a fee. Ask for both figures in dollars, and whether any fee is payable if the loan doesn’t settle. Our guide on how brokers get paid explains the common structures.
- Do you receive anything extra from particular lenders? Volume bonuses and preferred-panel arrangements exist. A straight answer is a good sign.
What should you give a broker?
The quality of your pack decides the speed of everything that follows. A broker can only present what you hand over, and lenders lose confidence fast when facts change halfway through.
| What to provide | Why it matters |
|---|---|
| Amount, purpose and the date you need funds | Rules out lenders that can’t meet the timeline |
| ID for all directors and guarantors | Needed for every submission |
| Six months of business bank statements | Most lenders assess cash flow from these first |
| Latest BAS and financial statements | Shows turnover trend and profit |
| An ATO portal statement | Lenders will find any tax debt anyway; disclosing it first preserves trust |
| Property details, if offering security | Value estimate, existing loans and ownership structure |
| Anything awkward: defaults, declines, late lodgements | Lets the broker steer away from lenders that won’t accept it |
For the extras each loan type adds, see the business loan documents checklist.
The last row is the one owners resist. But if a broker submits to a lender that later discovers an undisclosed default or an ATO garnishee, you’ve used up a credit enquiry and possibly that broker’s goodwill with the lender. Telling the broker everything at the start costs you nothing.
Already have your statements and BAS to hand? You can start an enquiry with us in about a minute without anything appearing on your credit file.
How do you keep the process moving?
Set a clear brief and a check-in rhythm
Agree what success looks like: amount, maximum repayment you’re comfortable with, the latest settlement date, and whether you’ll offer property as security. Then agree when you’ll hear back. Twice a week is reasonable for an urgent file; weekly for a standard one.
Ask for options in writing
Before anything is submitted, ask the broker which lender they propose and why, and what alternatives they considered. Once an indicative offer comes back, ask for the total repayable in dollars, every fee, the early payout cost and the security and guarantees required. Our list of questions to ask before you sign works just as well put to a broker.
Approve each submission
Ask the broker to confirm with you before each lender submission. Each one can mean a credit enquiry, and lenders get nervous when they see a cluster of them within a few weeks. Our page on business loans with too many credit enquiries explains why.
Why is one broker usually better than three?
It feels sensible to put three brokers on the job and take the best result. In practice it backfires. Brokers often share lender panels, so the same lender can receive your file two or three times. Each submission can create a credit enquiry. Lenders may decline to proceed until they know which broker represents you, and some won’t deal with the file at all. The brokers, sensing they’re in a race, may present your file faster and less carefully.
Interview several, choose one and give them a fair window, say ten business days for a straightforward unsecured loan. If they haven’t delivered or communicated by then, move on cleanly and tell them you have.
When is going direct the better move?
A broker isn’t always necessary. Consider going straight to the lender when:
- your own bank already knows the business, you fit its criteria comfortably and the loan is straightforward
- you need a small, fast unsecured facility and you’ve already compared two or three online lenders yourself
- you want an equipment loan through the supplier’s finance partner and the terms stack up
Banks are often the cheapest source of business credit, and if yours is willing, that offer deserves serious attention. A broker earns their keep when your situation is less standard: a bank decline, property held in a trust, tax debt, short trading history, or a deadline banks can’t meet. Where the bank has already turned you down, see what to do when declined by the bank for the realistic next steps.
A short example
A Hobart physiotherapy practice needed $85k to fit out a second room and buy equipment. The owner rang three brokers in one afternoon. Two said they’d “get it out to the market” without asking about the practice’s ATO payment plan. The third asked for the ATO portal statement, noted the plan was up to date, and recommended two lenders comfortable with active payment arrangements. That broker also disclosed a $1,100 fee alongside the lender’s commission and explained it wasn’t payable unless the loan settled.
The owner chose the third broker. The first lender approved within a week. One submission, one credit enquiry, one settlement.
Ready for someone to look at your situation?
If you’ve read this far, you already know what a careful process looks like: one point of contact, honest information on day one, and options explained in writing before anything is lodged. That’s how we prefer to work too.
The enquiry is short, about sixty seconds, and sending it won’t leave a footprint on your credit report. We won’t shop your file around dozens of lenders or have strangers ringing you all week. A real member of our team reviews what you’ve told us and gives you a call. The more precisely you describe your figures and any rough patches, the quicker the right lender surfaces.
Frequently asked questions
Does a finance broker cost me anything for a business loan?
Often not directly, because lenders usually pay brokers a commission. Some commercial brokers also charge a fee to the borrower, especially for complex, urgent or private lending deals. Any fee should be agreed in writing before work starts, and you should know whether it's payable if the loan doesn't settle.
Do business finance brokers need a credit licence?
Not always. Credit used wholly or mainly for business purposes generally falls outside the National Credit Act, so a broker working only on business-purpose loans may not need an Australian credit licence. Many hold one anyway because they also arrange consumer or home loans. Membership of an industry association and a dispute resolution scheme is the more useful check.
Can a broker get a better deal than going direct to a lender?
Sometimes. A good broker knows which lenders accept your situation, how to present it and where price or terms can move. But a broker can only place you with lenders on their panel, and for a simple loan with your own bank, going direct can be just as good.
Should I use more than one broker?
It's usually better not to run two at once. If both submit to the same lenders, you can end up with duplicate credit enquiries and lenders unsure who represents you. Interview a few, pick one, and give them a fair window to deliver.
What should I do if I'm unhappy with my broker?
Raise it with the broker first, in writing. If that doesn't resolve it, use the dispute scheme they belong to. Most broker associations require members to belong to an external dispute resolution scheme, which is why checking membership at the start is worthwhile.