Understanding Broker Fees When Applying for Secured Business Loans

If you’re a business owner looking for funding, you’ll usually spend most of your time comparing interest rates, repayment terms, and how quickly you can get the money. But there’s another cost that many people may not be aware of until later in the process: broker fees.

These fees can sometimes make borrowing more expensive, especially if you’re already dealing with cash-flow pressure.

This article explains what broker fees generally are, why they exist, how much they can be, and how some brokers, including us at QuidFlow Capital, choose to handle things differently.

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What Are Broker Fees?

A broker fee is a charge that some brokers may apply for helping arrange a loan between you (the applicant) and a lender.

A broker might:

• Find lenders that could meet your needs
• Help with paperwork
• Pass your details to lenders
• Guide you through the process

In return, some brokers charge a fee to the applicant for this service.
Others may operate on a different model where they receive payment from lenders rather than from you.

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How Much Are Broker Fees?

Broker fees can vary quite a lot depending on the broker, the loan type, and the amount being borrowed.
There’s no fixed standard across the industry, but fees often fall into a few general categories:

1. Flat Fees

Some brokers may charge a set fee, this could be anything from a few hundred pounds to higher amounts depending on the complexity of the case.

2. Percentage Fees

Other brokers might charge a percentage of the loan amount. It’s not unusual for this to be somewhere in the low single-digit percentages, but some may charge more depending on the circumstances resulting in broker fees running into the thousands of pounds.

3. Mixed Fees

A combination of a flat fee plus a percentage.

4. Fees Introduced Later in the Process

Occasionally, applicants may only discover these fees after spending time providing documents or receiving a loan offer, which can make it harder to walk away.

These ranges are based on what is commonly seen in the market, but every broker sets their own structure and terms.

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Do You Always Have to Pay a Broker Fee?

No — not every broker charges a fee to the applicant.

Brokers earn money in different ways:

• Some charge the applicant directly
• Some receive payment or commission from the lender
• Some do a mixture of both

Because of this, it’s always worth asking upfront how a broker’s fees work.

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How QuidFlow Capital Handles Broker Fees

QuidFlow Capital is a broker, not a lender — and our goal is to keep things simple and transparent.

We do not charge you anything for using our service.
You can enquire, contact us, and explore options without paying any broker fee to us.

✔ Clear and straightforward process

We explain how everything works from the start, including how we’re compensated (which is not by you).

✔ No hidden or surprise charges

What you agree to is what you get — no unexpected fees appearing later.

✔ Free access to multiple lending options

Because you don’t pay anything to us, you can explore your funding options without worrying about paying to get started.

This approach makes the process easier and reduces one of the common stress points business owners face when trying to secure funding.

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Tips to Avoid Unexpected Broker Fees

Here are some helpful things to ask any broker or lender before you begin:

1. “Do you charge any fees to applicants?”
   A simple question that can save you a lot of money.

2. “When and how are fees paid?”
   Some brokers may charge upfront, while others may charge after approval.

3. “Is the broker paid by the lender instead of the applicant?”
   This can help clarify whether you will be responsible for any fees.

4. Get everything in writing
   Most brokers will provide clear documentation — make sure it outlines all costs.

5. Compare total cost, not just monthly repayments
   A loan that looks cheap can end up costing more once fees are added.

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In Summary

Broker fees are a normal part of the business lending landscape, but they’re not always well understood.

By knowing what they generally are, how they can be charged, and what to look out for, you can make more informed decisions when seeking finance.

At QuidFlow Capital, we operate on a simple principle: We don’t charge broker fees to applicants.

Our aim is to make the process as clear and stress-free as possible, while giving businesses access to funding options that suit their needs.

If you're exploring business finance and want a fee-free brokerage experience, we’re always happy to help.