What business finance brokers do

Business finance brokers arrange funding for companies: term loans, asset finance, invoice finance, commercial mortgages, bridging and development finance, and merchant cash advances. Regulation here is split. Lending to limited companies is generally outside the FCA perimeter, but consumer credit rules capture lending to sole traders and small partnerships up to £25,000, and regulated mortgage rules capture loans secured on residential property. A broker arranging FCA-regulated agreements needs FCA authorisation or appointed representative status; a broker dealing purely in unregulated corporate lending does not. Many firms in this index therefore operate legitimately without FCA authorisation, which makes understanding the boundary, and checking the firm against it, part of basic due diligence.

Regulation, and how to verify a firm

First establish whether your borrowing is a regulated agreement: if you are a sole trader or small partnership, or the loan is secured on your home, FCA authorisation is required and the firm must appear on register.fca.org.uk. For unregulated corporate lending, check the company on Companies House for active status and filing history, and look for membership of the National Association of Commercial Finance Brokers (NACFB), whose members carry professional indemnity insurance and follow a code of practice. Ask which lenders the broker has agency agreements with, and whether it is a broker or in fact a lender or lead-generator presenting as one.

Fees and commission

Commercial finance brokers are paid by lender commission, client fees, or both. Commission on unregulated business lending does not carry the disclosure obligations of regulated credit, so ask directly: what commission does the lender pay you on this facility, and does it vary between the options presented? Watch for arrangement fees charged upfront before an offer is secured, and for personal guarantees: a guarantee converts company borrowing into personal exposure and deserves independent legal advice before signature.

Questions to ask before instructing a firm

Is my borrowing FCA-regulated, and if so what is your firm reference number? What commission do you receive from each lender you have quoted? Are you a NACFB member with professional indemnity cover? Do you charge any fee before an offer is issued? Does this facility require a personal guarantee or a debenture over the company?

How this index is compiled

Every firm in this index is drawn from public records and verified against the Companies House register for incorporation, registered office and active status. Where a sector is FCA-regulated, firms are cross-referenced against the Financial Services Register; where it is not, the listing states what verification is available instead. Each firm has a single dedicated page showing its registered details, and firms can claim their listing to correct or extend the public record. The index is refreshed as Companies House filings change, and firms that dissolve or cease trading are removed. Inclusion is free and automatic from public data: no firm can pay to enter, leave or reorder the editorial index, and paid tiers change presentation on a firm’s own page only. Errors can be reported through the contact page and are corrected against the primary record.

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