Your Broker Isn’t Free. They’re Pocketing Thousands.
Brokers skim 5-15%+ off your loan and almost never tell you. Here’s how it works and how to avoid it.
Why apply to lenders directly?
Save Thousands
Brokers do not get lenders to compete for your business in a way that benefits you. Go direct and keep more money in your pocket.
Better Service
Brokers steer you towards products that maximize their revenue. Translation? More time and energy spent getting to an acceptable deal.
Honest Advice
When you go direct, lenders are signaling to you the risks in your business. For brokers, the solution to every business problem is funding.
Broker vs. Direct
| Broker Route | Direct to Lender | |
| Cost | 5-15% markup in hidden fees | No hidden commissions |
| Transparency | Rarely discloses full lender details | Full visibility upfront |
| Incentives | Broker pushes highest-paying lender | Negotiate directly with funding source |
| Renewal | Broker still gets paid | No recurring skim |
Real Options Without Brokers
FAQ
How do brokers actually get paid?
By skimming a cut off the top of your loan. Usually 5–15%. You’ll never see the line item, but trust me — you’re the one footing the bill.
What’s a “buy rate” and why does it matter?
The buy rate is what the lender would actually give you. The sell rate is what you get after the broker sprinkles in their fee. Guess which one you’re stuck with. Example: A broker gets you a $100,000 from Lender A at a 1.30 “rate factor.” What isn’t displayed to you is that the broker’s markup is 10% over the buy rate of 1.20. So they pocket $10,000 shortly after the loan closes. If you make all the payments, the lender will make $20,000.
Are broker commissions ever disclosed?
Almost never. The whole game relies on you not realizing there’s a markup. If a broker says, “don’t worry, the lender pays me,” translation: you pay them through worse terms.
Do lenders prefer working directly with businesses?
Absolutely. You’re cheaper (which means you’re more likely to close and close quickly) and safer (because your payments are lower) when there isn’t a middleman skimming 10% for their “service.” Lenders tolerate it because they need the business and they realize potential borrowers
Can I negotiate a broker’s commission?
Yes. But you have to understand how much commission is priced in and how it is typically structured. But honestly, the best negotiation is skipping the broker altogether.
Ok, so give me an example of a how a brokered deal works in real life.
Sure. Let’s say you need $200,000. The lender’s buy rate is 1.20. That means if you went direct, you’d owe back $240,000 over 12 months. Weekly repayment? Roughly $4,615.
But your broker doesn’t hand you the buy rate. They jack it up to a sell rate of 1.30. Now you owe $260,000 over the same 12 months. Weekly repayment? About $5,000.
That’s an extra $385 every single week for a year. By the time you’re done, you’ve forked over $20,000 more than you had to — just to pay your broker’s “expertise.”
Translation: $20k you could’ve put into payroll, marketing, or not losing sleep — instead, it bought your broker a nicer vacation.
What’s the fastest way to get broker-free funding?
First, understand your current situation and whether debt even makes sense or if another financing structure makes more sense. If yes, apply directly to lenders, whether it’s a bank or SBA lender, fintech funder, or other financing sources. Our AI chatbot Diogenes can help you determine the best funding sources for your particular business situation within minutes.
Stop Paying Junk Broker Fees
Talk to Diogenes — Get Transparent, Broker-Free Funding Advice