Using a broker

Last checked: 9 October 2026

What a broker does

A finance broker does not lend you money. It finds lenders for you, helps with the application and passes it on. Some brokers cover many lenders; others work with only a few. Accountants, equipment dealers and comparison websites can also act as introducers, passing you on to a lender they work with.

How brokers are paid

Most brokers are paid commission by the lender they place you with. Some also charge you a fee. Commission can differ from lender to lender, so a broker can earn more by sending you to one lender rather than another. That is not always the cheapest option for you.

What the rules say

Introducing someone to a lender is called credit broking. The FCA regulates it when the borrower is an individual (including a sole trader), a partnership of two or three people, or an unincorporated body such as a club or association (articles 36A, 60B and 60L of the Regulated Activities Order). In those cases the broker must:

• tell you, in good time before you sign, about any commission or fee from the lender that could affect its impartiality or your decision (FCA rule CONC 4.5.3);
• say whether it works with one or more particular lenders or works independently (FCA rule CONC 3.7.3).

If your business is a limited company, finding it a lender is not credit broking, so these rules do not apply. Ask the same questions anyway.

Questions to ask a broker

• Which lenders do you work with: the whole market, or a panel? How many lenders will you approach for me?
• How are you paid? How much commission will you receive, and does it differ between lenders?
• Will I pay you a fee? How much, and when: up front, or only if I take a loan?
• Will you show me every offer you receive, or only the one you suggest?
• Are you on the FCA Register with permission for credit broking? You can check any firm's permissions on the FCA Register.

Before you sign, compare any offer with the cheaper rungs of the ladder.

Why the directory does not list brokers

Brokers are paid by the lenders they place businesses with. Fundladder earns nothing from any route or provider (see the impartiality policy), and listing named brokers would send people towards a paid intermediary. So the provider directory lists the firms that provide the finance, and this page explains how to use a broker well if you choose one.

Sources

• The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, article 36A: credit broking (read 9 October 2026)
• The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, article 60B: regulated credit agreements (read 9 October 2026)
• The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, article 60L: definitions (read 9 October 2026)
• FCA Handbook, CONC 4.5: Commissions (read 9 October 2026)
• FCA Handbook, CONC 3.7: Financial promotions and communications: credit brokers (read 9 October 2026)