Short answer
What matters first
Choose a business finance broker that works with a panel of lenders, presents each option with the lender, amount, term, repayment amount and frequency, fees and total repayable, and explains any security or director's guarantee before you commit. A good broker is clear about how it is paid, reviews your bank statements before talking about amounts, never promises approval in advance and sends your file only to lenders whose policy fits rather than to everyone at once. Check the business is a registered Australian entity on ABN Lookup. Because business-purpose lending is not regulated like consumer credit, these checks matter more than they would for a personal loan.
Detailed explanation
A good broker can save a business days of applications and a string of credit enquiries. A poor one can cost more than the loan itself, through the wrong product, an unaffordable repayment pattern or a credit file cluttered by scattered applications.
This guide sets out what a business finance broker should do, the criteria worth checking, and the red flags that should end the conversation. It also shows how Blackcube Capital, a commercial credit facilitator, measures up against each one.
What a business finance broker actually does
A broker, or commercial credit facilitator, does not lend money. It reviews your business, matches it to lenders whose policies fit, prepares the file so the lender can assess it quickly, and presents the options that come back so you can compare them.
The value is in lender fit and preparation. Lender policies differ widely on trading history, industry, credit history and ATO debt, and a file sent to the wrong lender is usually declined. The business.gov.au guide to choosing funding gives a useful overview of the products a broker will be choosing between.
The criteria that matter
These are the practical tests that separate a broker worth using from one to avoid.
- Works with a panel of lenders, not a single funder
- Shows options side by side: lender, amount, term, repayment amount and frequency, fees and total repayable
- Explains security, director's guarantees and early payout terms in plain English
- Is clear about how it is paid and whether you pay anything
- Reviews your bank statements before discussing amounts
- Sends your file only to well-matched lenders instead of applying everywhere
- Is a registered Australian business you can verify on ABN Lookup
- Gives a straight answer when there is no fit
How business finance brokers are paid
Most commercial brokers are paid a commission by the lender when finance settles. Some also charge the client a fee, either upfront or on approval. Both models exist, so confirm before you proceed whether you will pay the broker anything, and when.
The lender's own costs, such as establishment fees and interest, are separate and should be shown in each option. Compare options on the total repayable, not the rate alone. Our guide to business loan interest rates and costs explains what to include.
Red flags
Walk away, or at least slow down, if you see any of these.
- Approval guaranteed before anyone has reviewed your bank statements
- Upfront fees before any options have been presented
- Options that cannot be compared on total repayable and repayment frequency
- Pressure to sign the same day without time to read the terms
- Offers to remove accurate defaults from your credit file for a fee
- No verifiable ABN or registered business entity
Business lending is regulated differently
Most business-purpose loans fall outside the National Credit Code that protects consumer borrowers, so a business owner carries more of the responsibility for checking terms. Industry codes help: banks follow the Banking Code of Practice, and some online lenders have signed the AFIA Online Small Business Lenders Code.
Directors should also understand their personal exposure. ASIC notes that lenders often require personal guarantees or security when a company borrows. See our guide on whether to sign a director's guarantee.
Illustrative comparison of two brokers
Broker A promises approval within the hour, asks for an upfront fee and sends one offer showing only a weekly repayment. Broker B reviews three months of bank statements first, explains that the business's ATO payment plan narrows the lender options, and presents two options side by side with the lender, term, repayment amount and frequency, fees and total repayable.
Broker B may not be the fastest, but its options can be compared and checked. This is a general illustration, not a description of any particular business or broker.
Caveats
No broker can guarantee approval, and no panel includes every lender. Lenders set the final amount, rate, term and conditions after their own assessment.
This guide is general information, not financial or legal advice. Read every loan document in full before signing.
How Blackcube Capital measures up
Blackcube Capital is a Melbourne-based commercial credit facilitator operated by BLACKCUBE CAPITAL PTY LTD (ABN 83 697 516 788). It is not a lender. We work closely with a panel of third-party lenders, and the lender assesses each application, makes the credit decision and sets the terms.
We never charge clients a fee. If finance settles, the lender pays us a commission. Funding options are compared side by side in the Blackcube Capital Client Portal, showing the amount, term, repayment amount and frequency, rate and fees, and the lender's full terms are provided before anything is signed.
The initial enquiry does not affect your credit score, complete enquiries are typically reviewed within 2 to 3 business hours, and if there is no realistic fit we say so early. You can read more about how we work.
Frequently asked questions
Do I need a broker to get a business loan?
No. You can apply directly to a lender. A broker or facilitator is most useful when you are unsure which lender fits, have something to explain such as ATO debt or a past default, or need to compare several structures quickly.
How are business finance brokers paid?
Most are paid a commission by the lender when finance settles, and some also charge the client a fee. Confirm whether you will pay anything before you proceed. At Blackcube Capital, we never charge clients a fee. If finance settles, the lender pays us a commission.
Does using a broker affect my credit score?
An initial enquiry with a broker usually does not. A credit check normally happens when a formal application goes to a lender. A good broker limits applications to well-matched lenders to avoid unnecessary enquiries.
Is Blackcube Capital a broker or a lender?
Blackcube Capital is a commercial credit facilitator. Like a business finance broker, it works with a panel of third-party lenders and helps businesses compare options. It is not a lender and does not provide loans directly.
Sources and further reading
About the writer: Jeff Gold writes Blackcube Capital's business funding guides. Guides are general information, checked against current lender practice and official sources, and are not financial advice.
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