How much does it cost to start a finance brokerage?
Starting a commercial finance brokerage focused on limited companies costs far less than most people expect. Company formation is around 12 to 50 pounds, basic running costs are modest, and CoreFi charges no franchise fee, unlike networks that charge 6,000 to 30,000 pounds upfront. You can earn commission from your first funded deal.
The most common misconception about starting a finance brokerage is that it needs a large upfront investment. That belief largely comes from franchise-model operators who charge between 6,000 and 30,000 pounds to join their network, often bundled with training, software access, and branded materials. When you strip out the franchise premium, the real cost of launching a commercial finance brokerage is low.
CoreFi is not a franchise. There is no joining fee, no licence fee, and no monthly software charge to access the platform. You earn a share of the lender commission on every deal you complete, starting at 55 percent as an Associate and rising to 70 percent at Partner level. The actual costs you need to plan for are the ordinary costs of running any small UK business, and most of them are one-off or very low.
What competitors charge vs what CoreFi charges
Franchise-model brokerage networks typically charge a joining fee ranging from around 6,000 pounds at the lower end to 30,000 pounds for established branded networks. On top of that, many charge ongoing monthly fees, technology subscriptions, or take a larger share of your commission to cover their platform costs.
With CoreFi, none of those fees apply. You pay nothing to join, and nothing to access the deal CRM, the lender panel, or the document and submission tools. CoreFi earns a share of the lender commission only when you complete a deal, so the commercial incentive is aligned. If you complete no deals, you pay nothing.
The real costs of setting up
These are the actual costs to budget for when launching:
Company formation: Registering a limited company with Companies House costs 12 to 50 pounds depending on whether you use the online service directly or a formation agent. This is a one-off cost.
Business bank account: Most challenger banks (Monzo Business, Tide, Starling) offer free accounts for new limited companies. Some traditional banks charge a small monthly fee after a free period.
Accountancy: A basic accountant for a small limited company typically costs 500 to 1,500 pounds per year depending on the level of service. Some brokers start out managing their own accounts using software such as FreeAgent or Xero.
Phone and laptop: If you do not already own suitable equipment, a decent laptop and a business phone contract are the main practical costs. These vary widely.
Professional email and basic presence: A domain name costs around 10 to 15 pounds per year. A business email address through Google Workspace or Microsoft 365 costs roughly 5 to 10 pounds per month.
For a lean setup, a realistic launch budget for the first year, excluding your own living costs, is typically under 2,000 pounds.
What you do not need to spend money on
Several costs that sound necessary are either myths or simply do not apply to unregulated commercial finance broking focused on limited companies:
FCA authorisation fees: Broking unregulated commercial finance to limited companies does not require FCA authorisation, so there is no FCA application fee, no regulatory capital requirement, and no annual FCA levy for this activity. The position is different if you intend to broker regulated products (such as consumer credit or residential mortgages) or to broker to sole traders, partnerships, or individuals, where FCA permissions can be required even for otherwise-exempt business loans. Take legal advice before offering those.
CeMAP or similar qualifications: CeMAP is a residential mortgage qualification. It is not required for commercial finance broking and has no relevance to the products on CoreFi's panel.
Professional indemnity insurance: PI insurance is not a legal requirement for unregulated B2B commercial finance broking. A specific lender may ask whether you hold a policy, and you may choose to take one out for your own comfort, but it is not mandatory and CoreFi does not require it as a condition of joining.
Expensive CRM or deal software: CoreFi provides the deal CRM, lender-matching engine, submission tools, and document handling as part of the platform. You do not need to buy or subscribe to a third-party system.
When do you start earning?
There is no qualifying period before you can earn. Once your agent account is active and you have completed the compliance and onboarding steps, you can place deals. Commission is earned on funded deals and paid out on a regular cycle.
The split starts at 55 percent of the lender commission at Associate level and rises to 60 percent (Broker), 65 percent (Senior), and 70 percent (Partner) based on your cumulative funded volume. There are no minimums to hit before you receive payment, and CoreFi does not take a larger share in your early months to recoup any training or joining cost, because there is no such cost to recoup.
The honest summary
Starting a commercial finance brokerage through CoreFi is genuinely low-cost compared with the franchise alternatives. The headline numbers:
- Franchise or joining fee with CoreFi: nil - Platform and CRM access: nil - Company formation: around 12 to 50 pounds - First-year running costs (lean setup): under 2,000 pounds - FCA authorisation (unregulated B2B to limited companies): not required - CeMAP qualification: not required - Commission on your first funded deal: yes
The main investment is your time: building a client pipeline, learning the products, and developing relationships with referrers. The platform handles the infrastructure.
Frequently asked questions
Is there a joining fee to become a CoreFi broker?
No. CoreFi charges no joining fee, no monthly platform fee, and no licence fee. You earn a share of the lender commission on every funded deal, starting at 55 percent at Associate level. CoreFi earns only when you earn.
Do I need FCA authorisation to start a commercial finance brokerage?
Not if you are broking unregulated commercial finance to limited companies, which sits outside the FCA's regulated perimeter. If you plan to broker regulated products, or to work with sole traders, partnerships, or individuals, FCA permissions can be required even for otherwise-exempt business loans, so take legal advice before proceeding.
How does CoreFi compare to franchise brokerage networks?
Franchise networks typically charge 6,000 to 30,000 pounds upfront plus ongoing fees. CoreFi charges nothing to join and nothing to use the platform. The trade-off is that CoreFi is not a franchise, so there is no branded territory or exclusive patch, but equally no large upfront cost and no contractual lock-in.
Do I need professional indemnity insurance?
Professional indemnity insurance is not a legal requirement for unregulated B2B commercial finance broking. Some brokers choose to hold a policy voluntarily, and a specific lender may ask about it. CoreFi does not mandate it as a condition of joining the platform.
When do I receive my first commission payment?
Commission is calculated on funded deals, with no qualifying period or minimum earnings threshold before you are paid. Once a deal funds and the clawback window closes, your commission is released and paid out in the normal payment cycle.
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