The market is full of brokers. Some honest, some predatory. Before sharing your information, ask any broker these five questions.
1. "How much do you charge, and from whom?"
An ethical broker earns commission from the lender, not from the business. If they charge the business upfront, that's a red flag. If they charge both sides, that's one too.
2. "How many lenders are in your network, and do you publish their minimum criteria?"
If the answer is "we work with every lender in the market," that translates to "we work with anyone who pays us commission." An ethical broker selects and audits its network.
3. "Do you accept lenders that use Confessions of Judgment?"
The correct answer is no. If they hesitate or say "it depends," that's a broker who will sell you whatever closes.
4. "Can you show me the equivalent APR, not just the factor rate?"
A broker who can't or won't calculate the equivalent APR of an MCA is hiding the real cost from you.
5. "How many lenders do you plan to send my information to?"
"5–10, so you have options" is usually code for "we're going to sell your info." An ethical broker shares your information only with the lenders you choose, with documented consent.
The answers to these five questions tell you nearly everything you need to know about a broker. If you can't get clear, written answers, find another one.
Ready for an honest conversation about capital for your business?