Commercial Finance Broker UK 2026
A UK commercial finance broker is an independent introducer who matches an SME to the right finance product and provider from a panel: invoice finance, asset finance, business loans, commercial mortgages, bridging finance, trade credit insurance, supply chain finance. The broker is paid commission by the lender, typically 1 to 2% of the facility. A good broker knows each lenders eligibility criteria, speed, sector appetite and pricing well enough to skip the wrong fits and quote you only the right ones. A bad broker just forwards your details to whoever pays the highest commission. This page explains what a UK commercial finance broker actually does, the questions to ask before using one, and how MarketInvoice (which is one) fits.
Founder & Managing Director, Muswell Rose, founder and PSC of Best Business Loans Ltd
Adam is the founder and managing director of Muswell Rose and a founder of Best Business Loans Ltd, the company behind Market Invoice. He spent over three years as managing director of Penny, a UK invoice finance business, and his career runs through insurance, mortgages, commercial finance and fintech lending. He writes the Market Invoice library.
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What a UK commercial finance broker does
- Product-fit assessment. Takes your situation (turnover, sector, debtor mix, security available, urgency) and identifies whether you need invoice finance, a business loan, asset finance, a commercial mortgage, bridging, or a combination.
- Provider matching. Knows each lenders panel position: who quotes at your turnover band, who handles your sector, who is fast vs cheap, who declines your industry. Excludes the wrong fits before you waste time on a decline.
- Quote sourcing. Approaches multiple lenders on your behalf, presents the proposals back to you for comparison. Saves you the time of running each application separately.
- Negotiation. Pushes back on pricing, fees, contract length, debtor concentration limits. A broker with volume across the same lenders has more leverage than a one-off applicant.
- Documentation. Packages the application so each lender sees the right information in the right format. Reduces back-and-forth and accelerates underwriting.
- Post-completion support. Some brokers (the better ones) stay involved through onboarding and review the facility annually for refinancing opportunities.
How UK commercial finance brokers are paid
Most UK commercial finance brokers are paid commission by the lender, typically 1 to 2% of the facility value on completion. Some brokers also charge the borrower a fee, especially for complex deals; this should always be disclosed up front. Pure introducer brokers do not bill the borrower; they earn from the lender on successful introduction.
This model has a structural risk: a broker may be tempted to steer you toward the lender that pays the highest commission rather than the best fit. The defence is to ask the broker which lenders are on their panel and how their commissions vary across the panel.
7 questions to ask a UK commercial finance broker
- How many lenders are on your panel, and which ones?
- Do you have whole-of-market coverage or a restricted panel?
- Do commissions vary across your panel? Which lenders pay you the highest commission?
- Are you FCA-registered? (Required for regulated consumer credit; voluntary but a strong signal for commercial finance.)
- Do you charge the borrower a fee? If so, when and how much?
- How many quotes will you bring me, in what timeframe?
- What happens if the deal does not complete? Do you re-engage if circumstances change?
FCA regulation: when does it apply?
The Financial Conduct Authority regulates consumer credit and certain mortgage activities. Commercial finance for limited companies is mostly unregulated. Sole traders and partnerships borrowing under £25,000 fall under FCA regulation. Brokers handling regulated activities (consumer credit, regulated mortgages) must be FCA-authorised.
Brokers handling only B2B finance for limited companies are not required to be FCA-authorised, but many choose to register as an Appointed Representative or hold their own authorisation as a trust signal. Check the FCA Register.
Commercial finance broker vs going direct to a lender
| Broker | Direct to lender | |
|---|---|---|
| Speed of best-fit identification | Fast (broker knows the panel) | Slow (you research each lender) |
| Multiple quotes | Yes (3 to 5 typical) | One per direct application |
| Cost to you | Typically zero (lender-paid commission) | Zero |
| Conflict-of-interest risk | Commission steering (ask the 7 questions) | None |
| Underwriting | Broker packages the application | You package it |
| When to use which | Most cases: time-saver and quote-comparison | When you already know exactly which lender fits |
How MarketInvoice fits
MarketInvoice is not a broker or a lender. It is an invoice finance comparison site: it lists 87 UK invoice finance providers and compares 27 on full published terms (Bibby, Close Brothers, Aldermore, Skipton, HSBC, Lloyds, NatWest, Ultimate Finance, IGF, Sonovate, Hydr and others). If you ask for quotes, eCapital, our introduction partner, handles your enquiry and comes back to you with quotes. It is free to you: eCapital pays us a fixed fee per introduction. Our guides explain which structure fits, whether that is invoice factoring, confidential invoice discounting or selective invoice finance on a single invoice.
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Free, no obligation. Tell us about your business and eCapital, our introduction partner, handles your enquiry and comes back to you with quotes.
Step 1 of 3 · Your business
Free to you: our introduction partner pays us a fixed fee for each introduction, whether or not you go ahead. See our privacy policy.
How we make money: Market Invoice is an independent comparison service, not a lender. Our introduction partner pays us a fixed fee for each business we introduce, whether or not you go ahead; you never pay us and it is never added to your costs. How we are funded.