How to choose a commercial finance broker
Choosing a commercial finance broker comes down to six checks you can make yourself, most of them in under an hour and none of them needing the broker’s help: the firm’s entry on the Financial Services Register, its record at Companies House, any trade body it says it belongs to, how it is paid, whether a personal guarantee will be asked for, and the total amount repayable on any offer, in writing. A broker that is happy for you to make every one of them is telling you something. One that hurries you past them is telling you something too.
We are a broker ourselves, so read this with that in mind. Nothing here says which broker to use; which firm a business works with is its own decision, and the checks below apply to us exactly as they apply to anyone else.
1. Find the firm on the Financial Services Register
Search the register at register.fca.org.uk by the firm’s name or its Firm Reference Number, the FRN, which a firm in this market normally prints in its website footer. The entry will show it either as authorised in its own right or as an appointed representative, and an appointed representative’s entry names its principal, the authorised firm that has taken responsibility for it under section 39 of the Financial Services and Markets Act 2000. Open the principal’s entry as well and check that it is current.
Then compare the details. The legal name, the trading names and the address on the register should match the website. Telephone the firm on the number the register gives, not the one in an email or an advert: the FCA warns that clone firms copy a real firm’s name and FRN and change only the contact details. A firm that is on the FCA Warning List, or that cannot be found at all, is one to stop with.
2. Check the company at Companies House
Every limited company is on the public register at Companies House, which is searchable at no charge. Look at the incorporation date, the registered office, the directors and the filing history. Under the Companies Act 2006 a private company files accounts within nine months of its year end (section 442) and a confirmation statement at least once every twelve months (section 853A), so a run of overdue filings or a recent strike-off notice is worth asking about before anything else.
Check that the company number on the website matches the register, and that the people you are dealing with are the directors or employees of that company. A trading name with no company behind it, or a director with a string of dissolved companies in the same line of work, is a question to put to the firm directly.
3. Confirm any trade body membership
Some commercial finance brokers belong to a trade body such as the NACFB, the National Association of Commercial Finance Brokers, which publishes a code of practice and a member directory. Membership is voluntary and plenty of firms are not members, so its absence proves nothing. Its presence is worth checking, though: if a website shows a trade body’s logo, search that body’s own directory for the firm rather than relying on the badge.
4. Ask how the broker is paid
Ask in writing, before you send any documents, and expect a plain answer to each of these.
- Does the firm receive commission from the lender, and does the amount differ from one lender to another?
- Will the firm charge you a fee as well? If so, how much, when is it payable, and is any of it due if no loan completes?
- Will the commission model and the amount for your deal be disclosed before you sign?
- Has the firm asked for any payment up front? The FCA warns about loan fee fraud, where a business is asked to pay a fee to release a loan that never arrives.
5. Ask whether a personal guarantee will be needed
Many lenders ask a company’s directors to guarantee its borrowing personally, so that if the company cannot repay, the lender can pursue the directors themselves. Ask early whether a guarantee is likely, whether it covers the whole debt or a capped amount, whether it is secured on a home, and whether it continues after the loan is refinanced.
Read the guarantee itself, not a summary of it. Some lenders ask a guarantor to take independent legal advice before signing, and a solicitor who acts for you and not for the lender or the broker is the person to explain what it commits you to.
6. Get the total amount repayable in writing
A monthly payment is not a price. Before you accept any offer, ask for it in writing and check that it states each of the following, so that two offers can be compared line by line.
| What to find on the offer | Why it matters |
|---|---|
| The amount advanced and the total amount repayable | The difference between them is the whole cost of the borrowing |
| Every fee and who receives it | Arrangement, exit, valuation, legal and any broker fee can sit outside the rate |
| The term and the repayment profile | Monthly, seasonal, interest only or a single repayment at the end change the cash needed |
| Security and guarantees | What the lender can take, and from whom, if repayments stop |
| Early repayment terms | What it costs to repay or refinance before the end of the term |
Signs to stop and check again
None of these proves a firm is acting in bad faith, but each one is a reason to pause, go back to the register and ask a direct question.
- An approval promised before anyone has seen your accounts or bank statements.
- A fee requested before any work has been done, or a request to pay into a personal account.
- Pressure to sign the same day, or an offer that expires within hours.
- A broker that will not name the lender until after you have signed something.
- Contact you did not ask for, from a firm whose number does not match its register entry.
Our own details, so you can run the checks on us
CapExpand Ltd (FRN 1060885) is a credit broker and an Appointed Representative of White Rose Finance Group Limited (FRN 630772), which is directly authorised and regulated by the Financial Conduct Authority. We are a broker, not a lender. Our register entry is at https://register.fca.org.uk/s/search?q=1060885, and CapExpand Ltd is company number 14433858 at Companies House, incorporated on 21 October 2022. We work with UK limited companies and LLPs only, for business and commercial purposes.
We will receive commission from lenders. On some cases we also charge a fee, which we set out in writing and agree with you before you proceed. Enquiring does not affect your credit score. If you apply to a lender, it runs its own credit search, which may be recorded on your file. This page is general information, not advice.
Frequently asked questions
Is a commercial finance broker the same as a lender?
No. A lender advances its own money and makes the credit decision. A broker arranges the finance by putting the case to lenders, and each lender decides for itself. Check which one a firm is before you apply: the register entry and the firm’s own terms will say.
Can I ask a broker which lenders it will approach?
Yes, and it is a fair question to ask before anything is sent. Ask which lenders the case will go to, and ask for nothing to reach a lender until you have agreed to it. A broker that wants a signature before it will say is one of the signs above.
How do I find out what a broker will earn from my loan?
Ask before you send documents, and ask for the answer in writing. A broker should be able to tell you whether it receives commission, whether it also charges you a fee, and when you will see the amount for your deal. We will receive commission from lenders; the commission model, calculation and amount will be disclosed to you throughout your customer journey.
Will contacting a broker affect my credit score?
Ask each broker that question directly, because practice varies. For us: Enquiring does not affect your credit score. If you apply to a lender, it runs its own credit search, which may be recorded on your file.
Related pages
More funding questions answered
- Can a construction company get invoice finance?Yes, from specialist funders, each publishing its own advance rate; why applications and retentions change the product.
- How to apply for a business loanThe eight steps from deciding the amount to drawdown, and which of them sit with the applicant.
- How to get a commercial mortgageThe seven steps from the property to completion: eligibility, the criteria check, the valuation, the offer, the legal work and the registrations.
- What is a debenture?The security document behind most secured lending to a company: fixed and floating charges, registration, ranking and enforcement.
- What is a legal charge?The form of mortgage over land in England and Wales: what it gives the lender, first and second charges, registration and discharge.
- What is loan to value?The loan as a percentage of the lender’s valuation, worked on round numbers, and why the valuation rather than the price decides it.
Check your options
Tell us the amount, what it is for and how long you have traded. We check the case against the published criteria of the lenders we can access, and the choice of lender is yours.
Sources
Checked 27 October 2026. We will receive commission from lenders. On some cases we also charge a fee, which we set out in writing and agree with you before you proceed.
- Financial Conduct Authority: the Financial Services Register
- Financial Conduct Authority: ScamSmart, clone firms, the Warning List and loan fee fraud
- Financial Services and Markets Act 2000, section 39: exemption of appointed representatives
- Companies House: find and update company information
- Companies Act 2006, section 442: period allowed for filing accounts
- Companies Act 2006, section 853A: duty to deliver a confirmation statement
- NACFB: the National Association of Commercial Finance Brokers, its code of practice and member directory
CapExpand Ltd (FRN 1060885) is a credit broker and an Appointed Representative of White Rose Finance Group Limited (FRN 630772), which is directly authorised and regulated by the Financial Conduct Authority. We are a broker, not a lender. We work with UK limited companies and LLPs only, for business and commercial purposes. We do not provide financial advice.