In short
- Business funding brokers and referral services are usually paid in one of three ways: a fee from the borrower, a referral fee or commission from the lender, or both.
- celerfunding.com never charges business owners a fee. Our terms say lenders and funding companies may pay us a fee or commission when a business we refer receives funding. This may affect which offers you see.
- Ask any broker, in writing, who pays them, how much and when, before you share documents or sign.
- Be wary of anyone who asks for a fee before you receive your funding.
Business funding brokers get paid in one of three common ways: the borrower pays them a fee, the lender pays them a referral fee or commission, or both. celerfunding.com is a referral service, not a lender, and never charges business owners a fee; our terms state that lenders and funding companies may pay us a fee or commission when a business we refer receives funding. This may affect which offers you see.
How a broker is paid matters because it affects what you pay in total and whose interests the broker is weighing. Below are the common models, the questions to ask, and the warning signs. For the difference between a lender, a broker and a marketplace, see what is a business funding marketplace.
The common ways brokers are paid
| Model | Who pays | How it usually shows up | What to check |
|---|---|---|---|
| Borrower-paid fee | You | A flat fee or a percentage of the amount funded, often taken from the funds at closing | The exact amount, when it is due, and whether it is owed if you are not funded |
| Lender-paid referral fee or commission | The lender or funding company | Paid by the lender to the broker after the deal funds; you do not pay the broker directly | Whether the lender's price to you includes that cost, and which lenders the broker works with |
| Both | You and the lender | A fee from you plus compensation from the lender | The total paid to the broker from both sides |
| Upfront or application fee | You, before funding | Money requested before any funds arrive | Treat with caution; see red flags below |
The US Consumer Financial Protection Bureau, writing about home loans, puts the basic split plainly: a lender makes direct loans, while a broker does not lend money and helps you find lenders; when you work with a broker, you pay them a loan-specific fee for their services. It also notes that some institutions act as both lender and broker, so you should ask whether a broker is involved (CFPB: lender vs broker). Business funding has no single fee rule across Canada and the US, which is why asking matters.
For SBA-backed loans in the US, the SBA uses a dedicated form, the Fee Disclosure and Compensation Agreement (SBA Form 159), with its 7(a) and 504 programs (SBA Form 159). If someone helps you with an SBA loan, ask whether this form applies.
How celerfunding.com is paid
We say this in our terms of use and on about us, and repeat it here:
- You never pay us. celerfunding.com never charges business owners a fee, at any step.
- Lenders may pay us. This may affect which offers you see. Lenders and funding companies may pay celerfunding.com a fee or commission when a business we refer receives funding. This may affect which offers you see.
- We do not lend or decide. We are not a lender and do not make credit decisions. The lender sets the rate, the cost and the terms, and approves or declines.
Because lenders may pay us, it is fair to ask any lender we introduce you to how its pricing is set, and to compare its offer with others. Read every offer in writing: our guide how to read a business loan offer shows what to look for.
Questions to ask any broker before you start
- Are you the lender, a broker or a referral service?
- Who pays you: me, the lender, or both?
- How much, and when? Ask for the amount in dollars or as a percentage, in writing.
- Do I owe you anything if I am not funded, or if I turn down the offer?
- Which lenders do you work with, and do you show me more than one option?
- Will anyone run a credit check, and when? With celerfunding.com there is no credit pull to look; a lender may check your credit later, before it makes an offer or funds. See funding with no credit check?
Red flags
Canada's Anti-Fraud Centre says that in most provinces it is illegal for a company to request an upfront fee before you receive your loan, that you should never send money first, and that you should be wary of companies that promise a loan regardless of credit in exchange for a fee (Canadian Anti-Fraud Centre: loan scams). Other warning signs:
- A fee that is not written down, or that changes after you sign.
- Pressure to sign the same day or to skip reading the contract.
- A request to pay by e-transfer, gift card or prepaid card.
- A promise of approval before anyone has seen your file.
If a broker cannot answer the questions above clearly, look elsewhere. If you are weighing a costly product, our guide on merchant cash advance alternatives lists cheaper options to compare.