What does a Business Finance Broker do?
Whether you have been told to speak to a broker or you are comparing your options, this guide covers the full picture — what we do, how the process works, what to watch out for, and the right questions to ask before you engage anyone.
What a business finance broker actually does
As a business finance broker, my job is to sit between your business and the lending market and do what most business owners simply do not have the time, contacts, or industry access to do themselves. I assess your financial situation, identify the right lenders from our panel of 60+ lenders, prepare and submit your application, negotiate on your behalf, and manage everything through to settlement.
The part that matters most is actually the least visible. Before I approach a single lender, I am making a series of deliberate decisions about how your application is positioned. Which lender is the right fit for your specific situation right now. What information to lead with. How to present the complexities in your file (self-employment, a short trading history, unusual security) in a way that addresses the lender's concerns rather than triggering them. This is application positioning, and it is why a well-prepared submission through a specialist broker frequently succeeds where a direct approach to the same lender does not.
My role does not stop at settlement either. I stay in touch, flag when your facility needs reviewing, and let you know when market conditions have shifted in your favour or when a refinance would make genuine financial sense. That ongoing relationship is what separates a specialist broker from one who simply moves on to the next transaction.
What a business finance broker can arrange
The term business finance broker covers a wider range of finance types than most people realise. Here is what I can arrange for you across the two areas I specialise in, plus the specialist structures that sit alongside them.
Commercial property finance
For businesses purchasing, refinancing, or developing commercial property in Australia.
Business loans and working capital
For businesses needing funding to operate, grow, acquire, or manage cash flow.
Specialist business finance
Asset-backed and cashflow-based structures for specific business funding needs.
This breadth matters because many business owners come to me thinking they need one specific product, and we end up identifying a combination of facilities that achieves their goals more efficiently. If you are not sure what you need, that is exactly where the conversation should start.
How a business finance broker is paid
This is one of the first questions I encourage every client to ask, because the answer directly affects how you should think about using a broker. In the majority of commercial and business finance transactions, I am paid by the lender via a commission once your loan settles. That commission is absorbed by the lender and does not add to your interest rate or loan costs. You pay nothing directly for the brokering service in most cases.
This arrangement is fully disclosed as part of our engagement — it is a legal requirement under Australian credit law, and it is something I am happy to walk you through clearly before any work begins. You will never be presented with an unexpected fee at the end of a process.
Because I am compensated by whichever lender your loan settles with, my incentive is to find the right lender for your situation, not to favour any particular one. A broker who pushes you toward one lender regardless of your circumstances is a broker worth questioning.
There are two situations where a fee may apply. The first is where a transaction is highly complex or non-standard and no lender commission applies. The second is where your application requires a business plan or cash flow projections as part of the lender's credit assessment. Unlike most brokers, I can prepare these documents in-house rather than leaving you to source them elsewhere. In both cases, any cost is quoted and agreed before work begins. You decide whether to proceed.
If you would like to understand what your specific situation would involve before committing to anything, the starting point is always a free, no-obligation conversation. No paperwork, no commitment.
Business finance broker versus going direct to a bank
This is one of the most common questions I hear from business owners who have not used a broker before. The honest answer is that it depends on your situation, but for most commercial and business finance transactions, working with a specialist broker will get you a better outcome than approaching a bank directly. Here is why.
Access to the full market, not just one institution
A bank can only offer its own products. Through my panel of 60+ lenders I can identify which institution is actively competing for your loan type, at your loan size, with your security profile, right now. Lender appetite shifts constantly. A lender that was restrictive six months ago may be the best option today, and I see that in real time through the transactions I am working on daily.
Application positioning makes a measurable difference
When you walk into a bank, their credit team assesses your application with no input from you on how it is presented. I prepare your application before it goes anywhere: what to lead with, how to frame your position, how to address anything that might raise questions. A well-positioned application to the right lender gets approved. The same information submitted without that preparation often does not.
Your credit file stays clean during the research phase
Every direct application to a lender triggers a hard credit enquiry. Multiple enquiries in a short period register as a pattern lenders associate with financial stress. When you work with me, research and shortlisting happens before any enquiry is placed. Your credit file is only touched when I am ready to submit to a lender already identified as the right fit.
Speed where it matters
I know which lenders are moving quickly and which are backed up. If your transaction has a time constraint, routing your application to the right lender at the right time makes a real difference. Non-bank lenders in particular can move considerably faster than the major banks, and they are often a better fit for business finance than most borrowers realise.
When going direct makes sense
If your transaction is genuinely straightforward, your existing bank relationship is strong, and you have one lender clearly in mind with competitive terms, going direct may be perfectly appropriate. A good broker will tell you this honestly rather than inserting themselves where they cannot add clear value. If you are not sure which situation you are in, that is what the initial conversation is for.
What the process looks like from first call to settlement
One of the most useful things I can do upfront is set accurate expectations. Here is what working with me typically looks like.
Conversation and assessment
We start with a brief conversation. No paperwork, no commitment. I need to understand your situation, what you need, and why. From there I assess your financial position and identify the right lenders for your specific circumstances. No credit enquiry is placed at this stage. If I cannot add clear value, I will tell you honestly rather than proceeding.
Application preparation and submission
I prepare your full application package: financial statements, tax returns, bank statements, and property details where relevant. Where a lender requires a business plan or cash flow projections, I prepare those in-house rather than leaving you to source them elsewhere. Once the application is positioned correctly, I submit it and manage all lender communication. Non-bank lenders often move in 24 to 72 hours. Commercial property transactions through major banks typically take three to six weeks.
Approval, settlement, and ongoing
Once approved, I walk you through the loan documents, flag anything worth querying, and manage settlement. My involvement does not stop there. I stay in touch after settlement, flag when your facility should be reviewed, and let you know when refinancing would make genuine financial sense. That ongoing relationship is what most borrowers do not expect and end up valuing most.
A note on timelines: these are guides, not guarantees. The speed of any transaction depends on the lender, the loan type, and how quickly documentation can be gathered. I will always give you an honest estimate once I understand your situation.
Talk directly to a specialist
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How to choose the right business finance broker
Not all business finance brokers are equal. A mortgage broker who occasionally handles business loans is a fundamentally different proposition to a specialist who has spent 15 years exclusively in commercial and business lending. Here is how to tell the difference before you commit to working with anyone.
Questions to ask a broker before engaging
Are you properly authorised to provide credit assistance in Australia?
Under Australian law, anyone providing credit assistance must either hold their own Australian Credit Licence (ACL) or operate as an authorised representative under an ACL held by a licensee such as an aggregator. Both are legitimate structures. Ask which applies, who the licence holder is, and request the ACL number so you can verify it at moneysmart.gov.au. A legitimate broker will provide this without hesitation.
Are you a member of the MFAA or FBAA?
Membership of the Mortgage and Finance Association of Australia or the Finance Brokers Association of Australia requires ongoing professional development, professional indemnity insurance, and adherence to a member code of practice. It is not mandatory, but a reputable professional broker will hold one.
Do you specialise in commercial and business finance, or is it a secondary part of your practice?
This is the question most people do not think to ask. A broker whose core business is residential home loans operates in a fundamentally different environment to one who primarily arranges commercial property and business finance. Ask specifically what percentage of their settled loans are commercial or business versus residential.
How many lenders are on your panel, and does it include non-bank lenders?
A broader panel gives you more options, particularly for complex or unusual transactions. Ask not just the number but whether the panel includes specialist and non-bank lenders. Many of the best outcomes in business finance come from lenders that are not household names.
If my lender requires a business plan or financial projections, can you help with that?
Most brokers will say no. This is a genuine service gap in the industry. If your lender requires these documents and your broker cannot produce them, you are left to source them elsewhere, or go without, which often means a declined application. Ask this upfront.
How do you charge, and when?
A straightforward question that every reputable broker should answer clearly in under a minute. Commission structure, whether a fee might apply, and what triggers it. If the answer is vague or changes when pushed, that tells you something important.
What information will you need from me, and how long will the process realistically take?
This tells you two things: whether the broker has a clear process, and whether their timeline expectations are realistic for your situation. A broker who promises an unrealistically fast outcome to win your business is not setting you up for a good experience.
Green flags and red flags
- MFAA or FBAA member with verified authorisation
- Primarily a commercial and business finance specialist
- Transparent about commission and fees before work begins
- Sets realistic timelines rather than promising speed
- Asks thorough questions before making any recommendations
- Tells you honestly if a broker is not the right solution for your situation
- Cannot or will not confirm their credit authorisation
- Primarily residential, business loans are a secondary add-on
- Guarantees approval before knowing your full position
- Vague about lender panel size or which lenders are actually on it
- Commission structure is unclear or disclosed only when pushed
- Pressure to sign quickly or move faster than the process warrants
What happens if your application is declined
A declined application is not the end of the process. It means that specific lender, at that point in time, was not the right match for your situation. In my experience, this is more common than most people expect, and it rarely means the transaction cannot be done.
When an application comes back declined, the first thing I do is identify why. There are two distinct types of decline, and they require different responses. A lender-specific decline means the application did not fit that lender's current credit policy, appetite, or criteria, but it may be perfectly suitable for another lender on our panel. A structural decline means there is something in the application itself that needs to change: a documentation gap, a serviceability issue, or a trading history that needs more time. In that case, I will give you an honest picture of what needs to change and over what timeframe, rather than pushing you toward a solution that is not right yet.
The most important thing after any decline is to not submit further direct applications to other lenders. Each one places another hard credit enquiry on your file, making subsequent applications progressively harder to approve. If your application through a bank has been declined, the single best step is to speak with a specialist broker before approaching anyone else. There is often a clear path forward. It just needs to be identified correctly before the next move is made.
Why Smart Business Plans
I have been arranging commercial property and business finance since 2009. In that time I have worked with more than 3,300 Australian business owners and property investors, across transactions ranging from straightforward business loans to complex commercial property acquisitions and SMSF lending structures. Everything in this guide reflects what I see and do in practice, not theory.
One thing that separates Smart Business Plans from most brokers is the ability to prepare business plans and cash flow projections in-house when a lender requires them. Most brokers will tell you this is your responsibility to source elsewhere. For complex business finance applications, this document is often the difference between an approval and a decline. Having it prepared by the same specialist who understands your lender's assessment criteria is a significant advantage.
Every engagement starts with a free conversation. No paperwork, no commitment. You explain your situation, I give you an honest view of your options, including whether a broker is the right path for your specific circumstances. If we are the right fit, we move forward. If we are not, I will tell you that too.
- MFAA Accredited member
- Authorised representative of LMG (ACL 517192)
- Business plans and cash flow prepared in-house
- Commercial and business finance specialist, not a generalist
- Free initial consultation, no obligation
