# Business loan brokers in NZ: what they do and how they are paid > A business loan broker compares lenders for you and handles the application. Here is how New Zealand business loan brokers are paid, how they are regulated and what to ask before you use one. By Jason Dark, last checked 2026-11-06. Part of [Loans](https://smallbusinessloan.co.nz/loans) on Skipper. ## The short version - A business loan broker takes one application and finds a lender for your business from a panel of lenders. - Brokers are paid by commission from the lender, a fee from you, or both, and the cost can be added to your loan. - New Zealand doesn't require a financial advice licence to broker business loans, because the advice rules cover consumer credit, not lending to a business. - Before you use a broker, ask which lenders are on its panel, how it gets paid and what the loan will cost in total. ## What does a business loan broker do? A business loan broker finds a lender for your business so you don't have to apply to several yourself. You give the broker one set of information, usually your bank statements, trading history and what the money is for. The broker matches you with a lender from its panel, helps with the paperwork and deals with the lender until the loan is paid out. A mortgage broker does the same job for a home loan. Brokers are especially useful if your application might not meet a bank's requirements. That might be because your business is new, you have IRD debt, your credit history isn't perfect or you need money fast. A good broker knows which lenders accept different types of businesses, so you can avoid getting rejected several times and having too many credit checks. ## How business loan brokers are paid Brokers are paid in three main ways, and some use more than one method: - commission from the lender when your loan settles - a broker fee that you pay, often when the loan is funded - a share of the interest on some products [Lending Room](https://smallbusinessloan.co.nz/lenders/lending-room) charges a broker fee of up to $1,500, including GST, when your loan is funded, and the lender can charge up to $450 on top. [Fundme](https://smallbusinessloan.co.nz/lenders/fundme) earns commission that can be added to your loan or paid by you or the lender, and some products also pay it a share of the interest. Pioneer Finance's fee table says broker fees on its loans run from $100 to $2,500, capped at 5% of the loan. No matter how the broker is paid, their fee is part of your total cost. Always ask for the full amount you'll repay, including all fees and commissions, and compare it to what you'd pay if you went straight to a lender. You can use the [business loan calculator](https://smallbusinessloan.co.nz/tools/business-loan-calculator) to check your repayments and total interest. ## How brokers are regulated New Zealand doesn't license business loan brokers. The financial advice rules in the Financial Markets Conduct Act cover consumer credit, and the Credit Contracts and Consumer Finance Act says credit is only consumer credit when it's mainly for personal, domestic or household use. A loan for your business isn't, so arranging one isn't regulated financial advice. Some brokers have a financial advice provider licence, often because they also arrange personal loans. Fundme, for example, says it holds a Class 3 licence. Some brokers are also part of a dispute resolution scheme, like Financial Services Complaints Ltd, which is free for small businesses. Always check a broker's details on the Financial Service Providers Register before you share your bank statements. ## Questions to ask a broker Before you hand over your details, ask: - Which lenders are on your panel, and are any banks on it? - How are you paid on my loan, and how much? - What will I repay in total, including your fee or commission? - Will your enquiry show up on my credit file? - Who do I complain to if something goes wrong? A broker should answer all of these in writing. Fundme's disclosure statement, for example, lists its 14 lenders and explains how it's paid. ## Broker or lender? Going straight to a lender usually costs less, because there's no broker fee or commission. Many online lenders publish their criteria, so you can check whether you qualify before applying. The [eligibility checker](https://smallbusinessloan.co.nz/tools/lender-match) shows how many lenders publish criteria your business meets, and the [lender reviews](https://smallbusinessloan.co.nz/lenders) cover each one's rates, fees and speed. A broker makes more sense when you don't know which lender would accept you, when you need the money quickly or when your application is complicated. If you'd like a broker to look at your business, use the form on this page and we'll pass your details to one, with your permission. ## Common questions ### Is there such a thing as a business loan broker in NZ? Yes. Business loan brokers, also called business finance brokers, arrange loans for businesses from a panel of lenders, the way a mortgage broker does for home loans. Fundme and Lending Room are two examples. ### How much does a business loan broker cost? That depends on the broker. Lending Room charges a broker fee of up to $1,500 when your loan is funded. Fundme earns commission that can be added to your loan. Pioneer Finance says broker fees on its loans can be $100 to $2,500, capped at 5% of the loan. ### Do business loan brokers need to be licensed in NZ? Not to arrange business loans. New Zealand's financial advice rules cover consumer credit, and credit for a business isn't consumer credit. Some brokers hold a financial advice licence anyway, usually because they also arrange personal loans. ### Is it better to use a broker or go straight to a lender? A broker saves time and can find a lender that suits a harder application. Going direct can cost less, because there's no broker fee or commission. If your business could get a bank loan, compare the bank's offer too, because many broker panels don't include the big banks. ## Sources - [Credit Contracts and Consumer Finance Act 2003, section 11](https://www.legislation.govt.nz/act/public/2003/0052/latest/DLM211508.html) - [Financial Markets Conduct Act 2013, section 6 (financial advice product)](https://www.legislation.govt.nz/act/public/2013/0069/latest/whole.html) - [Fundme: Disclosure statement](https://www.fundme.nz/disclosure-statement) - [Lending Room: Business loans](https://lendingroom.co.nz/business-loans/) - [Pioneer Finance: Interest rates and fees](https://pioneerfinance.co.nz/important-information/interest-rates-and-fees)