Business loan broker or direct to the lender?
Go direct when you already know which lender and which product you want, and your case is plain: an established company, filed accounts, a director who owns a home, and an amount the lender advertises. Use a broker when any of that is missing, because the cost of a wrong application is a hard search on the company's file and a fortnight lost. We are a broker ourselves, so weigh what follows with that in mind; the section on going direct is there because it is sometimes the right answer.
The mechanical difference is small. A broker takes one set of information from you and puts it to the lenders whose published criteria it fits, instead of you applying to each in turn. On our panel that means one enquiry reaching a panel of 200+ UK lenders (checked September 2026), of which the lenders actually approached are the few whose rules match the case. The lender pays the broker on completion; the borrower does not.
What changes with a broker in the middle
Four things, and one of them is a cost.
| Direct | Through a broker | |
|---|---|---|
| Who chooses the lender | You, from the ones you have heard of | The broker, from the ones whose criteria fit |
| Credit searches | A hard search per application with most lenders | Enquiring does not affect your credit score; a hard search happens only when a lender you have chosen goes to full application |
| Who prepares the case | You | The broker, who knows what the lender will ask next |
| Who pays | Nobody extra; the lender's price is the lender's price | The lender pays the broker a commission on completion. The model and amount differ by lender and are disclosed to you on request and before you sign |
| Does the rate change | No | Not because a broker is involved; some lenders pay commission linked to the rate, which is why the amount is disclosed |
When going direct is the right call
A broker adds nothing to a case that does not need choosing or preparing.
- You have a lender relationship that works. A bank that has held your account for years and lent before knows things about you that no application form captures.
- The product is a single-provider scheme. The government-backed Start Up Loan, for instance, is a personal loan through the scheme's own delivery partners; no broker is involved and none should be.
- The amount is small and the lender is online. A few thousand pounds from a lender that quotes on its own website in minutes is not a case that needs a broker.
- You already hold a written offer. Going to a broker at that point is a second opinion, which is fine, but say so, and do not let anyone submit a fresh application without your say-so.
When a broker earns its place
The case has something in it that a lender's front page does not mention.
- Trading history under two years. 21 of the 55 unsecured lenders on our panel accept a business trading under a year; the other 34 set a longer minimum. Knowing which is which is most of the job.
- Adverse credit. 24 unsecured lenders accept defaults or CCJs older than two years and 8 will look at repeated recent ones. Applying to the wrong one adds a hard search to a file that did not need another.
- Property in the deal. Commercial mortgages, bridging and development lending are decided on loan-to-value, use, covenant and exit, and the lists of lenders for each are different. A broker's value here is in the lender selection, not the form-filling.
- More than one product in play. A van on hire purchase, stock on a working capital loan and a VAT bill spread over the quarter are three lenders and three sets of criteria. One conversation replaces three applications.
- A decline you do not understand. Lenders rarely say why. A broker that has placed cases with that lender usually can, and knows which lender takes the case the first one turned down.
What the panel says
Counts are distinct lenders on our panel with a live product for each criterion, checked September 2026. They describe the panel, not an offer to you, and composition changes over time.
- 200+ lenders and 1,800+ products across eight categories.
- 55 unsecured lenders, of which 21 accept a business trading under a year and 24 accept minor adverse credit.
- 38 asset finance lenders, 45 commercial mortgage lenders, 53 bridging lenders.
How to check a broker before you share anything
Five minutes. Find the firm on the Financial Services Register at register.fca.org.uk, either as an authorised firm or as an appointed representative of one, and check the name on the register matches the name on the website. Find the company at Companies House and check the registered office matches the address in the footer. Ask how the broker is paid and whether the amount can differ by lender; a good answer names the models and offers to disclose the figure for your deal. Ask whether enquiring affects your credit score. And ask which lenders it will not go to and why. A broker that answers all five in plain terms is doing the job.
We arrange finance for UK limited companies, LLPs, sole traders and partnerships through the lenders on our panel whose criteria the case fits, as a credit broker, not a lender. We do not advise; we put the options side by side and you decide. This page is general information, not advice.
Frequently asked questions
Does using a broker make the loan more expensive?
The lender's pricing is the lender's pricing. What a broker is paid comes from the lender, and where a lender's commission is linked to the rate, the rules require that to be disclosed to you, which is why we tell you the model and the amount for your deal before you sign. If a broker charges you a fee as well, it must say so up front.
Will a broker send my details to every lender?
A good one will not, and you should ask before you share anything. On our panel the case goes only to the lenders whose published criteria it fits, enquiring does not affect your credit score, and nothing goes to a lender until you have said which one.
Can I use a broker and still apply direct?
Yes, but tell both. Two applications for the same loan at the same lender look like something is wrong, and two hard searches in a week make the file worse for both.
What is the difference between a broker and a lead generator?
A lead generator sells your details; a broker places your case. The tell is what happens after the form: a lead generator's next contact is from firms you have never heard of, a broker's is from a named person at the broker who has read your numbers.
More funding questions answered
- How much deposit do I need for asset finance?Nothing to 20 percent, plus the VAT on hire purchase unless a lender defers it.
- Can a construction company get invoice finance?Yes, at 70 to 85 percent from specialist funders; why applications and retentions change the product.
- What documents do I need for a business loan?What lenders ask for by product, why some skip the accounts, and what to have ready on day one.
- Can I repay a merchant cash advance early?Usually yes, but the fee is fixed at signing, so it rarely cuts the total.
- What happens if I default on a merchant cash advance?What default means, how a personal guarantee works, and where to get free debt help.
- What counts as bad credit for a business?CCJs, defaults, late payments and thin files, and how long each stays on record.
Not sure which lender?
Tell us the amount, what it is for and how long you have traded. We say which lenders on the panel fit, and we say if direct is the better route for you.
Sources
Checked September 2026. Commission disclosure follows the rules that apply to credit broking; the amount for any deal is available on request.
Important information
CapExpand Ltd (FRN 1060885) is an Appointed Representative of White Rose Finance Group Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630772). We are a credit broker, not a lender, and we do not provide financial, tax or legal advice. We work with a panel of lenders whose particulars are available on request. If a deal completes the lender pays us a commission, at no cost to you; different lenders pay different amounts under different models, and we will tell you the amount for your deal on request. All lending is subject to status, valuation where applicable and the lender's own checks.
Registered office: Pure Offices, Lake View Drive, Annesley, Nottingham, NG15 0DT. Company No. 14433858.
CapExpand Ltd (FRN 1060885) is an Appointed Representative of White Rose Finance Group Limited, which is authorised and regulated by the Financial Conduct Authority (FRN 630772). We are a credit broker, not a lender. We do not provide financial advice.