In most cases, a finance broker costs you nothing directly - the lender pays the broker a commission once your loan settles, not the other way around. A broker can also charge you a fee directly, but only in specific cases, and by law it must be disclosed to you upfront, before you apply, and it is only payable if your loan actually settles.
How lender commission works
When a loan settles through a broker, the lender pays the broker a commission - typically a percentage of the loan amount. At loan-o, commission from credit providers generally ranges from 0% to 8% of the loan size, depending on the lender and product, paid after settlement either directly by the lender or via loan-o's aggregator. Brokers may also receive a volume bonus if certain targets with a lender are met over time. None of this is charged to you - it is a cost the lender absorbs as part of their distribution model, the same way a bank pays its own branch staff.
Does the commission make my loan more expensive?
No. Your interest rate and fees are set by the lender's own credit assessment of your application - your trading history, credit profile, security and loan purpose - not adjusted based on what they pay the broker who introduced you. A broker's commission does not sit on top of your rate.
When might a broker charge you a fee directly?
Some brokers, including loan-o in certain cases, may charge a brokerage fee for their services - for example, on more complex commercial deals. If a fee applies, you must be given a Credit Quote before any application is lodged, setting out the exact amount. loan-o's current Credit Quote allows for a fee of up to $2,000 (including GST), and it is only payable if your loan settles - not for the time spent assessing your situation. Lender fees, such as establishment or valuation fees, are separate again and are charged by the lender regardless of whether you use a broker.
What about referral fees?
If you were referred to a broker by an accountant, equipment dealer or supplier, the broker may pay that referrer a fee for the introduction. This is a cost the broker absorbs from their own commission, not an extra charge to you, but it must still be disclosed - either in the broker's proposal disclosure, or on request.
What you are entitled to ask
- What commission the broker expects to receive for your specific loan
- Whether any brokerage fee applies to your situation, and how much
- Whether anyone was paid a referral fee for introducing you
- To see the broker's Credit Guide before you proceed
A broker is required to give you a Credit Guide as soon as it is clear they are likely to provide credit assistance, and a Proposal Disclosure Document confirming commissions and key product details before you agree to anything. See loan-o's Credit Guide for the full detail on how we are paid.
The takeaway
For the large majority of business finance placed through a broker, the honest answer is that it costs the borrower nothing directly - the lender pays for the introduction, and your rate is unaffected either way. The exception is a small number of more complex deals where a brokerage fee may apply, and in those cases you are legally entitled to see the exact figure before you commit to anything. If in doubt, just ask.
For the broader question of when a broker is worth using at all, see our guide to business loan broker vs bank direct.
Finance is subject to lender approval, lending criteria, terms, conditions, fees and charges. Commission and fee figures reflect loan-o's current disclosed arrangements and may change - always confirm current figures in your own Credit Guide and Credit Quote. The information in this article is general and does not take into account your personal or business needs.
Last reviewed: 1 September 2026. This article was prepared using loan-o's current Credit Guide disclosures and information available from the Australian Securities and Investments Commission. This content provides general information only. It should not be treated as personal financial, tax, legal or credit advice.
Frequently asked questions.
Got a question about your own situation? Ask a specialist →
In most cases, no. Brokers are typically paid a commission by the lender once the loan settles. Some brokers may also charge a brokerage fee in certain cases, but by law this must be disclosed to you in a Credit Quote before you apply, and it is only payable if your loan settles.
It varies by lender, loan size and product. At loan-o, commission from credit providers typically ranges from 0% to 8% of the loan amount, paid after settlement, with occasional volume bonuses if certain provider targets are met.
No. The interest rate and fees on your loan are set by the lender based on their own credit assessment - not adjusted based on what they pay the broker. Using a broker does not add the commission on top of your rate.
Yes, and you should. Under Australian credit law, a broker must provide a Proposal Disclosure Document confirming commissions and key product details before you agree to proceed, and must give you an estimate if you ask.
Some brokers pay a referral fee to the person or business that referred you - an accountant, equipment dealer, or supplier, for example. This must also be disclosed to you.
Want a straight answer about what your loan would actually cost? Ask loan-o.
No obligation, no jargon - just a clear answer about fees and commission.
Ask a finance specialist →