On this page
On a small screen, scroll the table sideways to see every column.
| Ask the broker | A useful answer covers |
|---|---|
| Which lenders will you consider? | Panel scope, relevant exclusions and any direct-only options. |
| How are you paid? | Fees you pay, lender commissions and other commercial relationships. |
| What will you submit? | Which providers receive the application and when credit checks occur. |
| Why this offer? | Cost, product fit, security and the main alternatives considered. |
| Who handles problems later? | Settlement support, ongoing contact and complaints process. |
When a broker may add value
A complex acquisition, several existing securities or a specialist asset can involve more work than a straightforward small loan. A broker familiar with that type of transaction may help identify suitable providers and coordinate information.
For a simple requirement, obtaining a direct quote from your current bank or another relevant lender may be manageable. Compare the service you actually need with the broker's fees and the potential benefit.
Define the job you are paying for
Ask whether the service includes preparing the funding case, seeking indicative terms, comparing written offers and coordinating settlement. Establish what happens if no suitable offer is found. A service limited to introducing your details has a different value from managing a complicated transaction through to completion.
For a business purchase, useful experience includes understanding the acquisition structure and settlement dependencies. For equipment, it includes knowing which providers accept the asset and supplier. Ask the broker to explain the relevant obstacles in your proposal rather than relying on the number of years stated in a biography.
Keep responsibilities clear. An accountant prepares or explains financial information; a lawyer advises on transaction and security documents; the lender makes its credit decision. A broker may coordinate these parties but should explain which advice is outside the service.
Put every payment to the broker in writing
Request the amount or calculation of fees you pay, when they become due and whether they are refundable if the transaction does not settle. Ask about lender-paid commissions and whether remuneration differs between the offers presented. Where a fee is financed, include its effect on the amount borrowed and interest.
For illustration, a $1,000 fee deducted from a $30,000 advance leaves $29,000 before other deductions. If the business needs the full $30,000, that fee changes the funding requirement. “No upfront payment” does not by itself establish that the service has no cost.
A panel is not the whole market
Ask which providers are accessible for your product and business profile. A large headline panel can include lenders irrelevant to your situation. If only a few will be considered, find out why.
A matching platform may route an enquiry to providers; a broker may offer a more involved service; a direct lender assesses its own products. Businesses can combine these roles, so request a clear explanation of who is doing what.
Ask for the reason behind the recommendation
A useful comparison shows the net advance, repayment schedule, fees, guarantees, security and early payout terms. It should explain what makes the recommended offer suitable for the purpose and where the trade-offs sit.
Ask what happened to other relevant options. A lender may have been excluded because the business was ineligible, settlement was too slow, the cost was higher or it was outside the panel. Those explanations mean different things. The last one leaves open the possibility of obtaining a direct quote yourself.
For a tight settlement deadline, faster finance may justify a higher cost. Have the broker show that difference in dollars and explain the funding conditions still outstanding. “Best” is not a useful conclusion until the scope of the search and the deciding criterion are clear.
Give the broker a brief that can be checked
State the purpose, minimum usable amount, latest funding date and comfortable repayment range. Identify assets you are prepared to offer and any personal guarantee concerns. Include existing debts and relevant difficulties at the outset so the search is based on the actual position.
Ask the broker to distinguish essential requirements from preferences. A lower rate may be useful, but a facility that excludes the required purchase or cannot meet settlement is not an alternative you can use. Conversely, a deadline that can be negotiated should not automatically force an expensive offer.
When an offer is recommended, request the main reasons and material disadvantages in writing. If there is only one viable offer, ask whether that follows from lender policy, the broker's available panel or the time allowed. Those answers help decide whether to proceed, approach a provider directly or change the proposal.
Know where to go once the money is advanced
Confirm who handles account questions, repayment difficulties, variations and complaints after settlement. Some brokers remain involved; others hand the relationship to the lender. Keep the lender's contact details and documents so access does not depend on one intermediary staying available.
If the broker proposes refinancing again later, treat that as a separate future decision. Ask what improvement would justify another set of fees and whether an existing arrangement could serve the same purpose. A continuing relationship should make the business's financing easier to understand, not require frequent borrowing to demonstrate its value.
Control the application process
Read consent wording and ask before multiple submissions are made. Keep a record of the providers approached and the information supplied. Do not assume that every preliminary enquiry is free of a credit check.
Business lending and consumer lending do not have identical regulatory settings. Verify the provider and any relevant licence, membership or complaints arrangements for the service being offered; avoid relying on a generic statement that all brokers have the same obligations.
Choose the service on its relevant experience, clear explanations and disclosed cost. Keep control of where the application goes and retain the offer comparison, submission record and consent terms.
Broker, direct lender or loan-matching service?
| Route | When it can help | What to establish |
|---|---|---|
| Business loan broker | A complex transaction, unusual security or a need to present one coherent funding proposal. | Borrower-paid fee, lender-paid commission, panel coverage, scope of advice and ongoing support. |
| Direct lender | You know the product you need and can prepare the application and compare alternatives yourself. | The full written cost and conditions; a single lender can only offer its own products. |
| Loan-matching service | An initial search across the providers participating in that service. | Who receives the information, whether a hard credit check follows and which lenders are outside the panel. |
SMBLoan is an information publisher. It refers readers to Lend; it does not itself operate a lender marketplace, broker the loan or work directly with the lenders discussed. Read the Lend review for the separate service and its limitations.
Ask for any borrower fee and the timing of payment in writing. “Free to enquire” is not the same as a loan with no charges, and lender-paid commission is different from a fee you pay the broker. For regulated consumer-credit activity, check the relevant licence or authorisation on ASIC’s registers. Commercial-purpose lending has a different regulatory scope; industry membership does not by itself establish licensing or suitability.
Assess a broker by the proposed structure
Trade Funding’s published process moves from the business purpose and profile to matching, validation and presented options. Its range includes working capital, invoice and trade finance, leases and property finance. That breadth can help an owner who has a cash problem but has not identified the right facility; it does not establish that every option is suitable or that the whole market is compared.
Give the broker the payment dates and the receipt expected to repay the debt. Ask why the proposed structure fits better than a relevant alternative, which lenders were considered, what the broker earns and when a credit enquiry occurs. A lower instalment after refinancing is not proof of a saving if the term and total cost increase.
Compare options through Lend
Lend handles the enquiry and lender matching. Check its consent and credit-check information before proceeding.
Compare options with LendSMB Loan publishes information; we are not a lender, broker or loan marketplace. This opens Lend’s enquiry service. We do not work directly with lenders and may receive a referral fee from Lend. Disclosure