How to start a commercial finance brokerage in the UK

Step 1: Choose your model before you incorporate

The most important early decision is which borrowers you serve and which products you arrange, because that sets your regulatory position from day one.

Unregulated commercial finance to limited companies is the cleanest starting point. Products such as unsecured business loans, merchant cash advances, invoice finance, asset finance, and commercial bridging, arranged for limited-company borrowers, fall outside FCA-regulated activity under the current framework, so no FCA authorisation is required. This is the model CoreFi is built around.

Regulated products and non-limited borrowers are different. Broking to sole traders or partnerships can require FCA permission even for otherwise-exempt business loans (Article 36A(4) of the Regulated Activities Order). Regulated products such as consumer credit, Start Up Loans up to £25,000 to individuals, and residential mortgages always require FCA authorisation, whether direct or as an appointed representative of an authorised firm. That is a separate, longer process.

Choosing the unregulated limited-company route does not cap your growth. The UK SME lending market is large, lender appetite is strong, and most trading businesses of any scale operate as limited companies.

Step 2: Set up your limited company

Incorporate a private limited company through Companies House. Online registration typically completes within about 24 hours and costs £50. You will need:

- A company name (check availability on the Companies House register and consider how it reads to prospective clients) - A registered office address in England, Wales, Scotland, or Northern Ireland - At least one director and one shareholder (this can be the same person) - A business bank account (most challenger banks onboard a new limited company within days)

You can also register a separate trading name if you prefer; there is no requirement to trade under the exact registered company name.

Speak to an accountant early about how you will take income (salary, dividends, or a mix) and register for Self Assessment with HMRC where relevant. Keep an eye on the VAT registration threshold as turnover grows. A straightforward accountant relationship usually pays for itself quickly.

Step 3: Get lender panel access and a deal platform

A lender panel is your product shelf. Without lenders who will accept your introductions, you have nothing to place. Building direct lender relationships from scratch takes months and often depends on a track record you do not yet have. Joining an established broker platform addresses both.

CoreFi provides an active panel of specialist lenders covering unsecured business loans, secured commercial loans, invoice finance, asset finance, bridging, development finance, and more. You also get a CRM built for commercial finance deal flow, document handling, a lender-matching engine, and email templates and scripts used on live deals.

CoreFi charges no franchise or joining fee. You earn commission from your first deal, split at the Associate tier (55% of the lender commission to you) rising to 70% at Partner level as your volume grows. Franchise-model competitors typically charge somewhere between £6,000 and £30,000 upfront, so this is a materially lower cost of entry.

Step 4: Learn the products

Commercial finance spans a wide range of products, each with its own credit criteria, typical use case, and lender appetite. You do not need to master all of them before your first deal, but you do need to hold an informed conversation with a business owner about their options.

The core products to understand first are:

- Unsecured business loans: fast to arrange, terms of roughly 3 to 60 months, often up to £500,000 for well-trading companies - Invoice finance (factoring and discounting): converts outstanding invoices into working capital; strong for businesses with B2B debtors - Asset finance: hire purchase or leasing for equipment, vehicles, and plant - Merchant cash advance: repaid as a percentage of card takings; suited to retail and hospitality - Commercial bridging: short-term, property-secured lending, typically 3 to 24 months

CoreFi's platform includes product guides, lender appetite profiles, and conversation scripts, so you are not starting from a blank page. No CeMAP or equivalent qualification is required for unregulated commercial finance; CeMAP is a residential-mortgage qualification and does not apply here.

Step 5: Win your first deals and build your pipeline

Your first deals will usually come from your existing network: former colleagues, local business owners, and accountants or solicitors who work with business clients. Referral relationships with accountants and solicitors are especially valuable long-term introducers, and CoreFi's platform includes an introducer management suite to track and pay referral commissions.

A straightforward process for a new broker:

1. Identify a business with a funding need (acquisition, cashflow, equipment, or property) 2. Gather the basics: trading history, turnover, amount required, and purpose 3. Run the deal through CoreFi's lender-matching engine to find the best-fit lenders 4. Package the application and submit to one or two lenders 5. Support the client through underwriting to drawdown

Commission is paid by the lender on drawdown, typically 1% to 3% of the facility. On a £200,000 loan at 2%, the gross commission is £4,000; at Associate tier you retain £2,200. As your volume grows, your tier rises and you keep a larger share. These figures are illustrative, not a promise of income.

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