Commercial Finance Brokers
Commercial finance brokers act as a go-between service for businesses who are looking to raise finance and commercial lenders. They arrange the business loan from start to finish and usually charge a fee or are paid a commission by the lender - sometimes both.
- Funding from £1,000 to £10 million
- Decisions in as little as 1 hour
- Compare funding options from trusted lenders
- Check your eligibility in minutes
It's fast, free and won't affect your credit score
Trusted by Hundreds of Business Owners
- Why use a finance broker?
- What is a finance broker?
- What does a finance broker do?
- Top tips and questions when using commercial finance brokers
- What is the process when applying through a commercial loan broker?
- Who is the main national trade body for commercial finance brokers?
- What areas do we cover as a commercial finance broker platform?
- Commercial finance broker FAQS
Why use a finance broker?
Most business owners use a finance broker because the market has grown too large to search properly on their own. NACFB member brokers alone arranged £33 billion of SME lending across 180,000 transactions in 2025, close to two-thirds of all broker-facilitated business lending in the UK. A commercial finance broker does that shortlisting for you.
Commercial finance brokers can take the hard work out of finding the best business loan that is right for you. Essentially, they look at your lending requirements and match you to the right 'business loan' product and lender. The issue is that the business finance space has become a very crowded marketplace, which is great news for small business owners and SMEs, but inevitably more choices can lead to more confusion.
The Capalona platform has been designed with this in mind. It gives you control when searching the market for the right business loan product, as our intelligent matching service looks at all the relevant eligibility criteria and matches your enquiry with the right loan option for your business. Not only do we look for the most suitable loan product, but you can also be assured that lenders on the Capalona platform will give you competitive quotes too.
A commercial finance broker platform such as Capalona offers some unique features. We have a large panel of lenders in the UK, which gives you a wide market reach. Our brokerage platform doesn't charge you any fees for the service. You may, however, be charged by a traditional commercial finance broker from the start, and it's always a good idea to check first. Our platform is open for business 24 hours a day, seven days a week. So even if you ask for a quote at 3 am on a Sunday, our funding platform is working when you are.
What is a finance broker?
Essentially, when a UK business needs help to choose the best option available and wants to shop around for the best deal without doing too much of the legwork themselves, a commercial finance broker can be a good option. While commercial finance brokers do play a necessary role in the process, it's an important consideration to note that the brokerage and lender industry has changed over the last few years. There are now many more lenders in the space, many of whom have developed a range of products that utilise digital online technologies, software decisions and online case tracking systems.
These new systems have been created to offer customers a faster decision time without the requirement of outdated paperwork applications. These technologies are only becoming faster and more precise, especially with the emergence of Open Banking being even more utilised in the processing of business loan enquiries.
Capalona is a platform designed for business customers to harness the breadth of the commercial finance market and receive quotes best suited to their needs. All the middle work you'd expect from a commercial finance broker, but making the whole process easier and quicker than ever before. And, unlike some brokerage services, we don't charge the business any fees for using the service - it is free to use.
What does a finance broker do?
In practice, the job of a commercial finance broker breaks into a few steps. A broker takes your requirements and your trading position, works out which lenders are realistically likely to say yes, packages the application so it meets that lender's criteria, then manages the case through to offer. A good broker will also tell you when borrowing is the wrong answer for what you are trying to do.
Top tips and questions when using commercial finance brokers
These are the questions worth putting to any business loan broker before you commit to anything.
- Are they regulated by the FCA (Financial Conduct Authority)?
- Find out about any extra broker fees from the start. This is sometimes called a 'Fee Agreement'.
- Understand how these fees become payable and at what point.
- Do they require you to have a meeting?
- Is there a lot of paperwork involved?
- How will they communicate with you?
- Do they compare the market?
- Do they have a Data Protection policy and are they GDPR-compliant?
- How fast is the process from application to loan offer?
- Are they a member of a trade association such as the NACFB?
These are all things to ask and consider when talking to a broker. Reputation is also a good factor, and it would be prudent to ask about recent case studies. Look for real business owners in real situations where the broker and business have been successful in finding the funding required.
In some cases, we see that not all business loan enquiries are straightforward. Some may be more complex than others, whether there are elements of poor/bad credit history, CCJ's or just complicated business situations. Rest assured, we have a team dedicated to helping find the financial solutions to those scenarios.
What is the process when applying through a commercial loan broker?
It depends on the individual or company you are choosing. Business lending brokers vary, and so do their practices. Some independent brokers may require a meeting depending on the size of the necessary loan, they may look to come out to meet you, sit down, and go through the options.
They may look at getting the paperwork together with you and signing a fee agreement or similar instructional contract. You may be asked to find a range of supporting business documents such as business accounts, merchant statements, identification (usually passport and driving licence) and other supporting documents such as landlord references (if required). It can vary depending on the type of funding needed. For example, a merchant cash advance is a type of funding only applicable to those businesses who take card payments from their customers. Therefore, merchant statements are always required to show the lender how the business is performing via their card sales. These documents wouldn't be necessary if the business is applying for invoice finance or development finance, for example but other forms of documentation based on these loan products will be.
Who is the main national trade body for commercial finance brokers?
The UK's trade body flagship is the National Association of Commercial Finance Brokers (NACFB). They provide a level of reassurance for customers who engage with brokers who have a membership with the NACFB. As with any member of the association, there are specific regulatory and best-practice requirements to be accepted as a member.
The association also advises and implements best practice guidelines through communications to brokers and often organises events, meetings and trade expos for the industry to increase the level of professionalism across its member base.
The NACFB has a dedicated compliance team which offers further guidance to brokers who have their internal compliance. The NACFB also provides brokers with advice, training and support necessary for staying fully compliant with UK regulatory requirements and the NACFB Minimum Standards.
Sorodo Limited T/A Capalona is a member of the NACFB here in the UK. We offer a high level of compliance standards throughout our business practices. We are also licensed with the FCA (Financial Conduct Authority) registration number 774781. Sorodo Limited is registered on the Register of Data Controllers with the ICO (Information Commissioner's Office) number ZA160887.
What areas do we cover as a commercial finance broker platform?
We cover the whole of the UK and Northern Ireland. Many regional brokers often look after major cities such as London, Leeds or Birmingham and concentrate on those areas. We have helped to fund small businesses and SMEs from the tip of Scotland to the South Coast and everywhere in between.
What next?
If you are looking to fund your business and you want to access the best loan product that is right for your business, try using our free-to-use service here. The quote form collects a certain amount of data from you to identify what type of loan product would best suit your needs. We then display your results so you can compare your funding options online with ease. Simply select the loan products you'd like to proceed with to request your free, no-obligation quotes directly from the lenders.
Commercial finance broker FAQS
Any firm arranging regulated credit agreements has to be authorised by the Financial Conduct Authority. Plenty of commercial lending falls outside FCA regulation, so authorisation is not automatic, and it is worth checking the register yourself.
A lender puts up the money, whereas a broker introduces you to lenders and manages the application, but does not fund the loan itself. Capalona is a credit broker, not a lender.
You can use a commercial finance broker if your business has bad credit, and it is one of the situations where a broker earns their keep. Knowing which lenders will look past a CCJ saves a string of declined applications that damage your file further, and there are lenders who specialise in business loans for bad credit.
An application through a commercial finance broker takes anywhere from an hour to several weeks, depending on the product. Unsecured lending can produce a decision in around an hour, while secured facilities and property finance run longer because of valuations and legals.
You do not have to accept a quote from a commercial finance broker. Comparing options through Capalona is free, and every quote is presented with no obligation.
About the author
Adrian T
5/5
Amazingly fast, efficient service, minimal paperwork. So much faster than my business bank of twelve years.
FAQs
0330 223 5036