Will providers disclose any commissions or introducer fees?
Short answer: Yes — but how, when, and how much depends on the product and provider
In the UK, most reputable lenders and brokers will clearly tell you if a commission or introducer fee is payable and who pays it. For regulated agreements, rules generally require disclosure of the existence and nature of commission, and in many cases the amount on request before you sign. For unregulated business finance, disclosure is driven by industry codes and best practice — and transparent providers still make fees clear in writing before you proceed.
At Best Business Loans, we do not lend or broker finance; we act as an independent introducer and help you connect with suitable providers. Any lender or broker we introduce will explain their fee structure and any commissions so you can compare like for like with confidence.
Updated: October 2025
What “commission and introducer fee” disclosure means
What is a commission or introducer fee?
A commission is a payment a lender makes to a broker or introducer for referring a successful application. An introducer fee is a charge that may be payable by you to a broker or advisor for arranging finance. Some arrangements include both, while others include neither.
Commissions are usually built into the lender’s cost of acquisition and do not always change the rate you pay. If a broker charges you a fee, it should be stated up-front, in writing, with the amount or the calculation method.
When does disclosure apply?
Disclosure applies before you make a binding decision. Providers should tell you about any commissions, broker fees, arrangement fees, documentation fees, or early settlement charges you could incur. For regulated credit, you should receive pre‑contract information highlighting key costs and the nature of any commission.
For unregulated business agreements, industry bodies and good conduct standards expect clear, fair, and not misleading information. Reputable firms include fee and commission details in their Terms of Business, engagement letters, or offer documentation.
Who might pay what?
The lender may pay a commission to a broker or introducer without any separate charge to you. Alternatively, you may pay a broker fee directly, often as a fixed amount or percentage, and this should be disclosed before work proceeds. Some products include a lender “arrangement” or “documentation” fee, which should be listed on the offer.
Key documents where disclosure typically appears
You may see disclosure in these documents: Terms of Business or Engagement Letter from a broker, a lender’s Heads of Terms, an Offer Letter, or Pre‑Contract Credit Information for regulated agreements. Always read each document in full and ask for clarification if anything is unclear.
Good providers will answer reasonable questions about how they are paid, and whether any commissions could influence the options presented to you.
Good practice vs. regulation
Many limited-company business finance agreements fall outside retail credit regulation, but best practice still calls for transparency. If your agreement is regulated, providers generally must disclose the existence and nature of any commission and, on request, the amount or method of calculation before the agreement is concluded.
Whether regulated or not, your decision should never hinge on hidden costs. If you cannot see a clear explanation of fees, ask for it in writing before you proceed.
How and when providers disclose commissions and fees
What to expect before you share sensitive information
A broker or lender should explain their status and how they are remunerated at the point of engagement. You should receive a concise outline of any fees payable by you and if commissions may be received from lenders. If a fee is contingent on success, that should be made clear along with when it becomes due.
Transparent firms also state whether their panel is restricted or whole‑of‑market, which helps you understand potential commercial relationships.
At application and pre‑approval stage
During initial checks, you may receive a summary of likely costs, including estimated rates and any upfront fees. If the broker or lender proposes a fee for packaging, assessment, or valuation, this should be itemised before you authorise the work. If commission could vary by lender, you can ask whether that variability influences recommendations.
For regulated agreements, the existence and nature of commission must typically be disclosed in good time before you sign, and the amount disclosed on request.
At offer stage
The formal offer should list all costs: rate, arrangement fees, documentation fees, security or valuation fees, and early settlement terms. If a commission or introducer fee is relevant to your offer or repayment profile, the provider should make that clear. You can ask for the commission amount or basis of calculation so you can compare alternatives like-for-like.
Do not sign until you are confident about total cost of finance, including any third‑party charges.
Common fee and commission terms you may see
- Arrangement fee: A lender’s charge for setting up the facility.
- Documentation fee: A fixed fee for preparing and executing documents.
- Broker/Introducer fee: A charge you pay to the intermediary for sourcing or arranging finance.
- Commission: A payment from lender to introducer or broker for a successful referral.
- Service charge (invoice finance): An ongoing fee for managing the facility.
- Discount rate (invoice finance): The interest charged on funds you draw.
If any of these apply, they should be explained in plain English with either the amount or the method of calculation.
On completion and beyond
On drawdown, you should receive final documentation that mirrors the agreed fees and any broker charges. If there are ongoing fees, such as monthly service charges or annual renewal fees, the schedule should identify them clearly. For variable‑rate costs, the basis and timing of any changes should be set out.
If something differs from what you were told earlier, pause and request written clarification before you proceed.
How disclosure works across common business finance products
Term loans, cashflow loans, and working capital
Lenders typically disclose the interest rate, any arrangement fee, and early settlement terms in the offer letter. If a broker fee is payable by you, it should be stated up‑front and on the invoice or completion statement. Where a commission is paid by the lender to a broker, good practice is to disclose its existence and provide the amount on request before you accept the offer.
Ensure you compare APRC or total cost of credit where available, not just the nominal rate.
Asset finance, equipment finance, and hire purchase
Providers normally disclose documentation fees, option‑to‑purchase fees (for HP), and any brokerage fee payable by you. Commission arrangements between lender and broker are common and should be transparent in nature and disclosed on request. Ask whether commission changes the product choice and whether a non‑commission alternative exists.
Review early termination charges and residual values carefully before signing.
Invoice finance and factoring
Expect to see the service charge, discount rate, and any minimum fees clearly itemised. Brokers may receive a referral commission, which reputable providers disclose in nature and amount on request. Ensure you understand notice periods, concentration limits, and audit fees, which can affect total cost.
For sectors with complex debtor books, insist on a written fee schedule and examples based on your ledgers.
Merchant cash advance and revenue‑based finance
Providers generally disclose the factor rate or total repayment amount, plus any origination fee. If a broker fee is due, this should be listed separately and agreed before application. Commission from the provider to the introducer should be disclosed in nature and amount on request so you can compare across offers fairly.
Check card processing compatibilities and any integration or switching costs.
Sector‑specific context and transparency
Some industries have nuanced pricing due to asset types, seasonality, or debtor risk. In logistics and transport, for example, invoice finance and asset funding are common and fee structures can vary by fleet profile and debtor concentration. For tailored guidance, see our page on logistics business loans and finance to explore sector‑relevant options and expectations.
Whatever your sector, insist on a written breakdown of every fee and (where possible) the amount or calculation basis of any commissions.
Your rights, red flags, and how to protect your business
Your rights to ask for detail
Before you commit, you can ask the broker or lender to confirm the existence and nature of any commissions and whether they could influence the recommendation. For many agreements, you can also ask for the commission amount or method of calculation. You are entitled to a clear explanation of any fees payable by you and when they become due.
If the provider declines to clarify material costs, consider seeking alternatives.
Standards reputable providers follow
Reputable firms commit to information that is clear, fair, and not misleading and avoid burying material fees in small print. They issue engagement letters or Terms of Business that set out their charges and disclose if they may receive commission from lenders. Their offer letters and facility agreements match what they told you earlier in the process.
They also make it easy to compare offers by providing total cost figures and fee schedules in writing.
Red flags to watch for
- Vague or missing information about who pays the broker and how much.
- Pressure to sign before seeing a full breakdown of fees and charges.
- “No fee” claims that do not explain how the intermediary is remunerated.
- Moving goalposts — fees or terms that change late without a clear reason.
- Unwillingness to confirm commission existence or amount upon reasonable request.
If you encounter any of these, pause and request written clarity or seek a second opinion.
Practical steps to stay in control
- Ask, in writing: “Do you receive a commission on this product, and if so, how is it calculated?”
- Request a written schedule of all fees payable by you and by the lender.
- Compare multiple offers on total cost, not just headline rates.
- Keep copies of all disclosures, emails, and offer letters for your records.
- If uncertain, ask your accountant or a professional advisor to review the terms.
A transparent provider will welcome these questions and answer promptly and clearly.
Our approach to transparency and your next steps
How Best Business Loans operates
Best Business Loans is an independent introducer that uses AI‑driven matching to connect established UK companies with suitable lenders and brokers. We do not provide loans, credit, or financial advice, and we are not the decision‑maker on pricing or eligibility. Our role is to help you find relevant options quickly and to encourage transparent, written disclosures from the providers we introduce.
Using our service is free to submit an enquiry, and you remain in full control of which provider you choose to engage.
What you can expect on commission disclosure
Any provider we introduce should give you clear information about fees and the existence and nature of any commissions before you proceed. Where applicable and on reasonable request, you should be able to obtain the commission amount or the method used to calculate it before you accept an offer. If a broker proposes a fee payable by you, they should disclose this in writing before they do chargeable work.
If you feel any disclosure is incomplete, tell us, and we will help you request clarification from the provider.
Important information and fair‑dealing commitments
We aim to ensure information is clear, fair, and not misleading, and we encourage the same standard from our partners. We do not guarantee rates, approvals, or outcomes, and we do not cover every lender in the market. Always read the provider’s documents carefully and consider independent advice if you are unsure.
Your data is handled securely and shared only with relevant finance professionals in line with your enquiry.
Next steps — check your eligibility and get transparent quotes
It takes minutes to complete a Quick Quote and get matched to providers who are active in your sector. You will see indicative terms and can request full written disclosure of any commissions, introducer fees, or lender charges before you decide. This saves you time and helps you compare options on a like‑for‑like, fully transparent basis.
Start now for a free Quick Quote, Decision in Principle, or Eligibility Check. Get matched to providers who prioritise clarity as much as you do.
FAQs about commission and introducer fee disclosure
Will a broker always disclose if they get paid by the lender?
They should disclose the existence and nature of any commission before you proceed, and in many cases provide the amount on request. Reputable firms do this in writing so you can make an informed decision. If in doubt, ask them to confirm it in their Terms of Business.
Can commissions affect the rate I pay?
Not necessarily, because commissions are often part of a lender’s acquisition costs and do not always influence your rate. However, you should still ask for a full cost comparison across offers. A clear, written breakdown helps you compare fairly.
Where will I see fee and commission details?
Look for them in a broker’s engagement letter, the lender’s Heads of Terms or Offer Letter, and any pre‑contract information. If you cannot find them, request a written schedule before you sign. Do not proceed until you are comfortable with the total cost.
Can I ask for the exact amount of commission?
Yes — for many agreements you can ask for the commission amount or the method of calculation before entering into the contract. Good providers will supply this promptly. Keep the written response for your records.
What if a provider refuses to disclose?
That is a red flag. Consider other providers who commit to transparency, and let us know so we can help escalate your request or introduce alternatives. Your business deserves clear, fair, and not misleading information from the outset.
Key takeaways
- Expect clear disclosure of the existence and nature of commissions and any introducer fees before you commit.
- Ask for the amount or calculation method of commission to compare offers like‑for‑like.
- Insist on written fee schedules covering arrangement, documentation, service, and early settlement charges.
- Avoid providers who cannot or will not confirm how they are remunerated.
- Use our free Quick Quote to get matched with transparent providers who explain costs up‑front.