Business finance broker vs going direct to a lender

By Shaun Johnson · Updated 24 October 2026

Should you apply to a lender yourself or use a business finance broker? How each works, what it costs and when each makes sense.

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In a nutshell

Going direct means applying to one lender and seeing only its products, which can work well if you already know which lender suits you and that you'll qualify. A business finance broker works with many lenders, matches your business to the ones most likely to approve it, gets quotes for you to compare and handles the application. Most brokers are paid by the lender, so using one usually costs you nothing extra, but always ask how a broker is paid.

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At a glance

Lenders you see: One direct, many through a broker
Who does the work: You direct, the broker otherwise
Unpublished lender policies: Known by experienced brokers
Quotes to compare: Usually several through a broker
Cost of a broker: Usually paid by the lender
Best direct when: You know the lender and you'll qualify

Going direct to a lender

Applying directly means choosing a lender yourself, whether that's your bank or a non-bank lender you've found online, and applying for one of its products. It can be quick and simple when you already know the lender suits you: for example, a small online loan you know you'll qualify for, or a facility from a bank you have a strong relationship with.

The catch is that one lender can only offer its own products, and you won't know whether another lender would have offered better terms, a faster decision or a structure that suits you better. If you're declined, you start again with another lender, and each new application usually means another enquiry on your credit file.

Using a business finance broker

A business finance broker works with a panel of lenders. They assess your business, work out which lenders are likely to approve it, get quotes for you to compare and manage the application through to settlement.

An experienced broker also knows how lenders actually assess deals, including policies they don't publish, such as how they treat ATO debt, short trading histories or particular industries. That's often the difference between an approval and a decline, especially with non-bank and private lenders, whose criteria vary widely.

What a broker costs

Most business finance brokers are paid a commission by the lender when your loan settles, so you don't pay them directly. Some also charge a fee. A good broker will tell you upfront how they're paid and which lenders they work with, so ask.

When each makes sense

Going direct can make sense when:

you have a simple, standard need, such as a small unsecured loan
you already know the lender suits your business and that you'll qualify
you have a strong relationship with your bank and it offers what you need

A broker usually makes sense when:

you want to compare more than one option before deciding
you need a decision quickly, or the deal is time-critical
you've been declined, or you don't fit bank criteria
the deal is larger or more complex, or needs a particular structure
you'd rather someone else handled the lenders and the paperwork

How Splendid works

Splendid is a business finance broker specialising in non-bank and private lenders, and working with banks where they suit. You deal with an experienced broker, backed by our proprietary AI lender matching, which works out your cash flow and serviceability from your bank statements and tests your business against the lenders that offer the finance you need. We get quotes from the best-fit lenders for you to compare, and we're paid by the lender, so there's no cost to you.

Going direct vs using a broker

Lenders and products you see

Going direct to a lender: One lender's products
Using a business finance broker: Products from many bank, non-bank and private lenders

Finding the right lender

Going direct to a lender: You research lenders and their criteria yourself
Using a business finance broker: The broker matches your business to lenders likely to approve it, including on policies lenders don't publish

Applications and credit enquiries

Going direct to a lender: Each lender you try usually means a new application and credit enquiry
Using a business finance broker: The broker assesses you first and only approaches lenders likely to suit

Comparing offers

Going direct to a lender: You collect and compare quotes yourself
Using a business finance broker: The broker gets quotes and helps you compare them

Paperwork

Going direct to a lender: You handle it
Using a business finance broker: The broker prepares and manages it

Cost

Going direct to a lender: No broker involved
Using a business finance broker: Usually paid by the lender; some brokers also charge a fee

Usually suits

Going direct to a lender: Simple needs from a lender you already know
Using a business finance broker: Businesses that want options, speed, or don't fit bank criteria

Going direct vs using a broker
	Going direct to a lender	Using a business finance broker
Lenders and products you see	One lender's products	Products from many bank, non-bank and private lenders
Finding the right lender	You research lenders and their criteria yourself	The broker matches your business to lenders likely to approve it, including on policies lenders don't publish
Applications and credit enquiries	Each lender you try usually means a new application and credit enquiry	The broker assesses you first and only approaches lenders likely to suit
Comparing offers	You collect and compare quotes yourself	The broker gets quotes and helps you compare them
Paperwork	You handle it	The broker prepares and manages it
Cost	No broker involved	Usually paid by the lender; some brokers also charge a fee
Usually suits	Simple needs from a lender you already know	Businesses that want options, speed, or don't fit bank criteria

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Talk to a Splendid broker

Tell us what you need and a little about your business. Your broker works out your cash flow and serviceability from your bank statements, then matches the product, amount, terms and lender to your business.

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We seek multiple lender options for you
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FAQs

Questions about business finance broker vs going direct to a lender

Usually not. Most business finance brokers are paid a commission by the lender when your loan settles, so you don't pay them directly. Some brokers also charge a fee, so ask before you start. Splendid doesn't charge you for its service.

It can be, if you have a simple need, a strong relationship with your bank and you know you'll qualify. But your bank can only offer its own products. Many businesses that bank with a major bank still borrow from non-bank lenders for speed, less paperwork or unsecured options.

A broker can't guarantee a lower rate, but by matching you with lenders likely to approve you and getting several quotes, you can compare terms, fees and conditions before you choose, rather than accepting the first offer.

Talking to a broker doesn't. When a lender assesses an application, the enquiry is recorded on your credit file. A good broker assesses your situation first and only approaches lenders likely to suit you, which avoids unnecessary applications.

Often, yes. Non-bank and private lenders have different criteria from banks, and some consider newer businesses, imperfect credit or ATO debt. A broker knows which lenders are likely to look at your situation.

Ask how they're paid, how many lenders they work with, whether they work with non-bank and private lenders as well as banks, whether they'll get you more than one quote, and who will look after your application.

Splendid is a business finance broker specialising in non-bank and private lenders, and working with banks where they suit. An experienced broker handles every deal, backed by our proprietary AI lender matching, gets quotes from the best-fit lenders for you to compare, and manages the application to settlement. There's no cost to you.

This page is general information only and isn't credit, tax or financial advice. All lending is subject to each lender's credit criteria and assessment.