Short answer
What matters first
Before proceeding with a business finance broker, ask who the lender is, what the total repayable is including every fee, whether repayments are daily, weekly or monthly and how much each one is, how long the term is and whether paying early saves money, whether a director's guarantee or security over property is required, whether you pay the broker anything, and how many lenders your file will be sent to. A good broker answers each question clearly before you sign. Treat promises of guaranteed approval, upfront fees before any options, or options that cannot be compared on total cost as red flags.
Detailed explanation
The right questions take ten minutes and can save a business from a facility that looks fast and cheap but strains cash flow for months.
Use this list with any broker, facilitator or lender. Each question includes why it matters and what a good answer looks like.
About the lender
Ask who the lender is and whether it is a bank or a non-bank lender. Lenders differ in pricing, repayment frequency, flexibility and how they handle hardship, so the name matters.
A good answer names the lender in the option itself, so you can read its terms and check its business details on ABN Lookup.
About the total cost
Ask for the total repayable over the term, including establishment fees, ongoing fees and any other charges, not only the interest or factor rate. Two offers with similar rates can cost very different amounts once fees and term are included.
Our business loan calculator converts factor-rate offers into an annualised rate so you can compare like with like.
About repayments
Ask whether repayments are daily, weekly, fortnightly or monthly, how much each one is, and on what days they are debited. Then test that amount against your slowest month, not your best.
See our guide to daily, weekly and monthly repayments for how frequency changes cash flow pressure.
About security, guarantees and early payout
Ask whether a director's guarantee is required, whether it is limited or unlimited, and whether any property is taken as security. ASIC warns directors that a guarantee can make them personally liable if the company cannot repay.
Ask what happens if you pay the loan off early. Some facilities save interest on early payout; others charge the full cost regardless. Our guide on paying off a business loan early explains the difference.
About the broker
Ask whether you will pay the broker anything and when, which lenders it works with, and how many lenders your file will be sent to. A broker that sends your file everywhere at once can leave a trail of credit enquiries.
- Will I pay you a fee, and if so, when?
- Which lenders do you work with?
- How many lenders will see my application?
- Will a formal application run a credit check, and when?
Illustrative comparison of two offers
Two offers arrive for the same $50,000. Offer A has the lower headline rate but is repaid weekly over 12 months with a large establishment fee. Offer B has a slightly higher rate, is repaid monthly over 24 months and carries smaller fees. Only the total repayable and the size of each repayment show which one actually costs less and which one the business can carry in a slow month.
This illustrates why the questions matter. It is not a quote or a prediction of any lender's pricing.
Caveats
Answers differ between lenders and products, and terms can change until loan documents are issued. Rely on the final documents, not on earlier summaries.
This guide is general information, not financial or legal advice.
How Blackcube Capital answers these
Blackcube Capital is a commercial credit facilitator, not a lender. We work closely with a panel of third-party lenders and approach only those whose policy fits the business. We never charge clients a fee. If finance settles, the lender pays us a commission.
Options are compared side by side in the 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.
Frequently asked questions
What is the most important question to ask a broker?
Ask for the total repayable and the repayment frequency of each option. Together they show the real cost and whether your cash flow can carry it.
What answers should worry me?
A promise of guaranteed approval before your statements are reviewed, a request for an upfront fee before any options, or options that cannot be compared on total cost.
Should I get the answers in writing?
Yes. The lender's terms and loan documents should confirm every figure before you sign, and you should read them in full.
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.
Business Funding Support
Want clear answers before you commit?
Tell us what you need. We will compare realistic options side by side so you can see the full picture before deciding.