How can I avoid broker fees on a business loan?

Detail

Broker fees on commercial loans typically run 1%–4% of principal. On a $1M loan, that's $10K–$40K layered on top of the lender's rate. Marketplaces like Lendio and Fundera bake these into the deal — sometimes disclosed, sometimes embedded in rate. Direct lenders like Inflection Financing have no broker layer. The only fees on an Inflection Financing loan are: SBA guaranty fee (set by statute, 0%–3.75% based on loan size), origination fee (1%–2% depending on product), and standard third-party closing costs.

Key facts

• Broker fees average 1%–4% of principal
• Inflection Financing origination: 1%–2% (no broker spread)
• SBA guaranty fee: statutory, not negotiable
• Always ask: 'Are you the lender or a broker?'