Small business financing broker

Lenders or finance companies usually pay a commission or referral fee when a loan is placed. Some brokers charge the business a disclosed fee, if allowed.

A percentage commission or flat fee per funded loan. Equipment finance often brings repeat business as clients grow or upgrade.

• Reading financial statements at a basic level
• Sales and relationship building
• Explaining loan terms in plain language
• Organised follow-up with lenders and clients

• Check your provincial regulator, as loan brokering rules vary and some loans, such as those secured on property, may need a mortgage broker licence
• Quebec has its own rules and French-language requirements
• Fee disclosure and honest advertising, since clients may be in a tight spot
• Errors and omissions insurance and client data privacy
• Commissions only arrive when deals fund, so income can be slow to start

Startup costs are typically estimated at around $500 to $4,000 CAD, depending on your set-up, insurance and the tools you use to manage clients and lender applications. Most of the work happens by phone, email and video.

Monthly revenue is typically estimated at around $800 to $4,000, depending on how many loans are placed. Commissions only arrive when deals fund, so income can be slow to start.

Check your provincial regulator, as loan brokering rules vary and some loans, such as those secured on property, may need a mortgage broker licence. Also check fee disclosure, advertising, insurance, privacy and Quebec's French-language requirements.