1. Most borrowers don’t know they paid a broker fee
The majority of small businesses that get funded through a broker never see the fee as a line item. They see a rate, sign a contract, receive capital, and start repaying. Somewhere in that transaction, a broker collected 3–8% of the deal for connecting them to the lender.
This arrangement isn’t inherently wrong. But it’s worth understanding what it costs you — because that cost isn’t disclosed by default.
2. How broker fees actually show up
Broker compensation usually gets embedded into the deal in a few ways:
- Rate markup. The lender offers 10%. The broker presents it to you at 14% and keeps the spread.
- Point fees. The broker charges 3–5 origination points, funded at close out of your proceeds.
- Deal stacking. Some brokers place multiple products simultaneously, generating a fee on each — regardless of whether the combination is in your interest.
The business owner typically sees only the final number: funded amount and total repayment. The math works well enough that they sign. The broker’s margin is already baked in.
One of our customers saved $10,000 on their last deal by coming to us directly after going through a broker the time before. The rate wasn’t meaningfully different. The intermediary markup was gone.
3. When a broker actually makes sense
To be fair, there are situations where a broker earns their fee:
- Complex credit situations. A broker with deep lender relationships may be able to place a deal with a specialized lender you wouldn’t have found on your own.
- Very large or structured deals. If you’re looking for $2M+ across multiple products, someone who can negotiate across lenders and structure a package may save you more than they cost.
- First-time applicants who need guidance. If you’ve never done this and feel genuinely lost, a trustworthy broker can serve as an informed guide.
Outside of those situations, the math usually favors going direct.
4. What our pricing looks like with no middleman
| Product | Starting Rate |
|---|---|
| Term Loans | 6% |
| Lines of Credit | Prime + 1.75% |
| Merchant Cash Advances | 12% factor rate |
No hidden markup. No intermediary margin. Modest one-time origination fees, disclosed upfront.
And unlike most lenders, we offer discounts for paying early instead of penalties:
| Early Payoff Window | Discount |
|---|---|
| Within 30 days | 12% off remaining balance |
| Within 60 days | 8% off remaining balance |
| Within 90 days | 5% off remaining balance |
That structure rewards healthy businesses that generate cash faster than projected. Most lending is structured the opposite way.
5. Questions worth asking any lender
Before signing anything, ask directly:
- Are you the lender, or are you placing this deal with someone else?
- What origination fees apply, and who receives them?
- What is the full total repayment amount, not just the advance?
- Is there a prepayment penalty — or a prepayment discount?
A direct lender answers all of these without hesitation. Evasion or redirection on any of them is worth paying attention to.
6. The bottom line
Brokers have a legitimate role in the market. But if you already understand what you need, know roughly what you qualify for, and want the lowest total cost of capital — cutting out the intermediary layer is usually the right move.
We’ve been doing this for 13+ years and processed $16M in deal flow in 2025 alone. The process is straightforward, the pricing is stated plainly, and there’s nobody in between taking a cut.