If your business needs funding – whether to buy a property, upgrade equipment, or bridge a cash flow gap – a commercial finance broker can make the process significantly faster and less complicated.
Here’s what they do, how they’re paid, and when it makes sense to use one.
What is a commercial finance broker?
A commercial finance broker is a specialist who works between businesses and lenders. Rather than approaching banks directly, you work with a broker who assesses your situation, identifies suitable lenders, and manages the application on your behalf.
Unlike a bank, a broker isn’t limited to one product suite.
A good commercial finance broker has access to a panel of lenders – including major banks, non-bank lenders, and specialist funders – and can match your needs to the right facility at the right rate.
What types of finance does a commercial broker arrange?
Commercial finance covers a broad range of business funding needs. A commercial finance broker typically works across:
- Commercial property finance: loans to purchase, refinance, or develop commercial real estate, including offices, warehouses, retail premises, and investment properties. If you’re looking for a commercial property finance solution in Sydney, a broker can compare lenders and structures you wouldn’t easily find on your own.
- Equipment and asset finance: funding for machinery, vehicles, technology, or any asset your business needs to operate. This includes chattel mortgages, finance leases, and hire purchase arrangements. Equipment finance structured correctly can also deliver tax advantages worth considering.
- Business loans: unsecured or secured lending for working capital, expansion, or cash flow management. Business loans can be structured as term loans, overdrafts, or lines of credit depending on your situation.
- Cashflow solutions: including invoice finance and trade finance for businesses that need to bridge the gap between invoicing and payment.
How is a commercial finance broker paid?
Most commercial finance brokers are paid by the lender, not by you. They receive a commission when a loan settles.
Some brokers also charge an application or advisory fee, particularly for complex or larger transactions. This should always be disclosed upfront.
The key question to ask any broker is: are you comparing all suitable options or only lenders on a restricted panel?
A reputable broker will be transparent about their lender panel and any conflicts of interest.
When should you use a commercial finance broker?
Using a broker makes the most sense when:
- Your situation isn’t straightforward: self-employed, multiple directorships, or a non-standard asset
- You need to move quickly and don’t have time to approach multiple lenders
- You want access to specialist lenders that don’t deal directly with the public
- You’ve been declined by your bank and need alternatives
- You’re purchasing a commercial property and the deal is time-sensitive
Even if your situation is straightforward, a broker can often negotiate better terms than you’d achieve approaching a lender directly – particularly on rate, fees, and loan structure.
What should you look for in a commercial finance broker?
Look for a broker who holds an Australian Credit Licence (ACL) or is an authorised credit representative, this is a legal requirement.
Beyond licensing, look for demonstrated experience in commercial lending specifically.
Residential mortgage brokers don’t always have the specialist knowledge needed for complex business transactions.
It’s also worth asking how many lenders are on their panel, what their typical turnaround time looks like, and whether they’ve arranged finance for businesses similar to yours.
Some Frequently Asked Questions about Commercial Finance Brokers
Is a commercial finance broker the same as a mortgage broker?
Not exactly. A mortgage broker typically focuses on residential home loans. A commercial finance broker specialises in business and commercial lending, which involves different lender criteria, loan structures, and risk assessments.
How long does it take to arrange commercial finance?
It varies significantly by lender and deal complexity. Simple equipment finance can settle in 24–48 hours. Commercial property loans typically take two to six weeks, depending on the lender’s assessment process and whether a valuation is required.
Do I need a large deposit for commercial property finance?
Most commercial property lenders require a 20–35% deposit, though some specialist lenders will go higher LVR for strong borrowers or well-located properties. A broker can advise on what’s achievable for your specific situation.
Can a commercial finance broker help if I’ve been declined by my bank?
Yes. Non-bank and specialist lenders often have more flexible criteria than major banks. A broker who knows these lenders can identify alternatives that suit your circumstances.