Commercial finance brokerage business plan (free template)
A commercial finance brokerage business plan should cover your target market (typically limited companies needing unsecured or secured B2B lending), your commercial model (commission from lenders, no franchise fee), a realistic revenue ramp from your first deal, fixed and variable costs, and a 12-month pipeline target. A clear plan also supports your lender panel applications.
Starting a commercial finance brokerage without a written business plan is like quoting a client before you know the lender criteria. A plan forces you to think through your market, your model and your numbers before you spend a penny, and it is often the first thing a lender or introducer network asks for when you apply to join their panel.
The good news is that a brokerage business plan is shorter and simpler than you might expect. You are not raising venture capital. You are mapping a low-overhead service business with no stock and predictable commission income from your first funded deal. This page walks through every section your plan should contain, with a free template linked at the bottom.
Market and niche
Start by defining who you will serve. The UK SME lending market is large and fragmented, with over 5.5 million small businesses, most of them underserved by high-street banks. You do not need to serve all of them.
The sharpest plans pick a vertical or transaction type: property bridging for developers, asset finance for hauliers, working capital for manufacturers, or acquisition finance for owner-managed buy-outs. A niche makes your lender pitches stronger, your referral network more focused and your marketing far cheaper.
Be precise about the type of client you will serve, because it drives your regulatory position. Broking unregulated commercial finance to limited companies does not require FCA authorisation, which keeps your compliance overhead low at the outset. Broking to sole traders or partnerships can require FCA permission even for otherwise-exempt business loans, and any regulated product (consumer credit, residential mortgages, Start Up Loans up to 25,000 pounds to individuals) always requires FCA authorisation. If your plan includes any of those, take advice on your regulatory route before you trade.
Business model and revenue
Commercial finance brokers earn lender commission, typically expressed as a percentage of the facility value. Any arrangement fee charged to the borrower is separate and optional.
On the CoreFi platform, agents keep 55% to 70% of the lender commission depending on their tier (Associate at 55%, rising to Partner at 70% once lifetime funded volume passes a threshold). There is no franchise fee and no minimum volume requirement, so you begin earning from your first funded deal. For comparison, some networks charge roughly 6,000 to 30,000 pounds upfront before you place anything.
For your plan, model a conservative average commission rate (say 1.5% of facility value) and an average deal size for your niche. If your niche is working capital facilities averaging 150,000 pounds at 1.5%, one funded deal generates 2,250 pounds in gross commission before your tier split. At Associate tier that is 1,237 pounds to you from a single deal. Build a simple 12-month table: how many leads, how many conversions, how many funded deals per month.
Startup costs and ongoing overhead
A brokerage is a lean business. The main cost categories to plan for are:
- Company formation: around 50 pounds via Companies House - Platform or CRM access: CoreFi charges no setup or franchise fee; some other networks charge 6,000 to 30,000 pounds upfront - Professional expenses: an accountant, and a basic legal review of any introducer agreements you sign - Marketing: a simple website, LinkedIn and local referral network activity - Time to first deal: plan for 60 to 90 days from incorporation to first funded deal while you build your pipeline and complete lender panel applications
Professional indemnity insurance is not a legal requirement for unregulated B2B broking, though an individual lender may ask for it before onboarding you. Treat it as an optional line item rather than a day-one cost.
Total cash needed to reach your first deal is typically under 2,000 pounds if you run lean.
12-month revenue ramp and targets
Lenders and serious introducers want to see that you have thought about ramp. A credible plan does not claim 20 funded deals in month one. It shows a build:
- Months 1 to 2: company set up, lender panel applications submitted, referral network conversations begun, first leads in pipeline - Months 3 to 4: first one to two funded deals, commission received, pipeline growing - Months 5 to 12: a working monthly run-rate of three to eight funded deals depending on deal size and niche
Set a year-one gross commission target and work backwards to the number of active referral relationships and lender approvals you need to reach it. Keep your assumptions visible so a lender or partner can stress-test them. These are planning figures, not promises; your niche and effort will move them.
On the CoreFi platform your pipeline, lender submissions and commission tracking all sit in one place, so your real numbers at month three tell you quickly whether your assumptions were right.
Lender panel and competitive advantage
Your plan should name the lenders you intend to work with and explain why they match your niche. A panel of five to ten specialist lenders is more useful than a list of fifty if the five are right for your clients.
Describe your competitive advantage honestly. For most independent brokers starting out it is one or more of: specialist sector knowledge, an existing referral network (accountants, solicitors, estate agents), regional relationships, or speed of execution.
Avoid vague claims. Lenders read many broker business plans. A plan that says "we will provide fast, tailored service" is less convincing than one that says "our target clients are logistics businesses in the West Midlands with assets between 100,000 and 500,000 pounds, and our existing relationships with five regional fleet accountants give us a consistent referral pipeline."
Frequently asked questions
Do I need a business plan to start a commercial finance brokerage?
You are not legally required to have one, but lenders often ask for a summary when you apply to join their panel, and it forces you to pressure-test your numbers before you commit time and money. Many brokers who skip it regret it around month three, when their pipeline stalls and they have no baseline to check against.
How long should a commercial finance brokerage business plan be?
Four to eight pages is plenty. You need a market section, a model and revenue section, a costs section, a 12-month projection, and a short section on your competitive advantage. A lender does not need a 40-page document; they need to see that you have thought clearly about your niche and your numbers.
Do I need to include FCA authorisation in my business plan?
Only if it is relevant to your intended activities. If you are broking unregulated commercial finance exclusively to limited companies, FCA authorisation is not required, and you should state that clearly. If you intend to serve sole traders or partnerships, or offer any regulated product (consumer credit, residential mortgages, Start Up Loans to individuals), your plan must set out your regulatory route. Take legal advice before you trade if there is any doubt.
What commission rate should I use in my revenue projections?
Model conservatively at 1% to 1.5% of facility value as a blended average. Some products (bridging, specialist property) pay more; some (invoice finance introductions) pay lower recurring amounts. Use the midpoint for your main product line and show sensitivity: what does year one look like at 0.8% versus 1.5%?
Can I use the CoreFi free template without joining the platform?
Yes. The template is free to download and use whether or not you launch with CoreFi. If, after working through it, you want a lender panel, a deal CRM and commission tracking from day one with no franchise fee, that is when CoreFi becomes relevant.
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