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 £100, basic running costs are modest, and CoreFi charges no franchise fee, unlike networks that charge £6,000 to £30,000 upfront. You can earn commission from your first funded deal.
Most people who ask about starting a commercial finance brokerage have already sat through the franchise pitch. Six to thirty thousand pounds upfront, before you have placed a single deal, bundled with training you could get elsewhere and a branded territory that rarely turns out to be exclusive in any meaningful sense. We do not charge that. There is no joining fee, no licence fee, no monthly software subscription.
What the costs actually look like once you strip the franchise premium out is the point of this page. The honest answer: modest, mostly one-off, and well within reach of anyone who wants to run this as a business rather than buy into a network.
What competitors charge vs what CoreFi charges
Franchise-model brokerage networks typically charge a joining fee running from around £6,000 at the lower end to £30,000 for established branded networks. Many also take a larger share of your commission, charge ongoing monthly technology fees, or both.
CoreFi charges nothing to join and nothing to access the deal CRM, the lender panel, or the document and submission tools. We earn a share of the lender commission only when you complete a deal. If you complete no deals, you pay nothing. That is the whole commercial relationship.
We have watched brokers come to us after spending twenty thousand pounds on a franchise, only to find the lender panel was shallower than advertised, then spend another six months rebuilding relationships they thought they were buying. The fee does not buy what it appears to buy.
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 £100 depending on whether you use the online service directly or a formation agent. One-off.
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 per year depending on the level of service. Plenty of brokers start out managing their own books in FreeAgent or Xero and bring an accountant in once revenue justifies it.
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 per year. A business email address through Google Workspace or Microsoft 365 runs roughly £5 to £10 per month.
For a lean setup, a realistic first-year budget, excluding your own living costs, comes in under £2,000.
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. No FCA application fee, no regulatory capital requirement, no annual FCA levy. The position changes if you plan to broker regulated products such as consumer credit, residential mortgages, or Start Up Loans, all of which require FCA authorisation or an appointed-representative arrangement. It also changes if you broker to sole traders or partnerships, where FCA permission can be required even for otherwise-exempt business loans under Article 36A(4) of the Regulated Activities Order. Take legal advice before offering any of those.
CeMAP or similar qualifications: CeMAP is a residential mortgage qualification. It is not required for commercial finance broking and has no bearing on the products on CoreFi's panel.
Third-party CRM or deal software: CoreFi provides the deal CRM, lender-matching engine, submission tools, and document handling as part of the platform. Nothing separate to buy or subscribe to.
When do you start earning?
There is no qualifying period. Once your agent account is active and you have completed the compliance and onboarding steps, you can place deals.
The commission 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 cumulative funded volume. The thresholds are £50,000 funded for Broker, £1M for Senior, and £2.5M for Partner.
No minimums to hit before you receive payment. CoreFi does not take a larger cut in your early months to recoup a training or joining cost, because there is no such cost to recoup. Your first funded deal starts the clock on commission and on your tier progression.
The honest summary
Starting a commercial finance brokerage through CoreFi is genuinely low-cost next to the franchise alternatives. The headline numbers:
- Franchise or joining fee with CoreFi: nil - Platform and CRM access: nil - Company formation: around £100 - First-year running costs (lean setup): under £2,000 - FCA authorisation (unregulated B2B to limited companies): not required - CeMAP qualification: not required - Commission on your first funded deal: yes
The main investment is time: building a client pipeline, learning the products, developing referral relationships. The platform handles the infrastructure, so your time goes into the work that wins deals.
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 such as consumer credit, residential mortgages, or Start Up Loans, you need FCA authorisation or an appointed-representative arrangement. If you work with sole traders or partnerships, FCA permission can be required even for otherwise-exempt business loans under Article 36A(4) of the Regulated Activities Order. Take legal advice before proceeding with those.
How does CoreFi compare to franchise brokerage networks?
Franchise networks typically charge £6,000 to £30,000 upfront, plus ongoing fees. In our experience the lender panel access and tooling those fees are supposed to buy is rarely as deep as the sales pitch. CoreFi charges nothing to join and nothing to use the platform. There is no branded territory and no contractual lock-in, but equally no large upfront cost before you have placed a single deal.
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.
Launch your brokerage without the franchise price tag
No joining fee. No platform subscription. Access CoreFi's lender panel, deal CRM, and matching engine, and earn from your first funded deal.
Launch with CoreFi