# How Equipment Finance Brokers Make Money Canonical URL: https://fundmyequipment.com/learn/how-equipment-brokers-make-money/ Last modified: 2026-05-29T19:39:17+00:00 Type: efin_guide ## Summary How Equipment Finance Brokers Make Money. Comprehensive guide. ## Content Equipment brokers don't typically charge applicants directly. They're paid commissions by the lenders when funded deals close. Understanding the compensation flow helps you spot conflicts of interest and shop wisely. How broker compensation works You submit an application to a broker (free to you) Broker routes the application to one or more lenders in their network Lender(s) return quotes You select an offer and the deal closes Lender pays the broker a commission, typically 1-4% of the funded amount Commission is embedded in the lender's pricing (you pay it indirectly via the rate) Typical commission structures Flat percentage: 1-4% of funded amount Tiered: higher percentage on better credit tiers (less risk for lender) Volume bonus: brokers who bring lots of volume get higher base commission Specialty bonus: some categories (sub-prime, specialty equipment) pay higher to encourage broker channel Why this matters to you The broker is incentivized to close the deal, not necessarily to find your best option The broker may favor lenders with higher commission even if a different lender would offer you better terms The commission is embedded in the rate, so going "direct to lender" doesn't save you the commission (the lender retains it as profit) FTC rules require disclosure of broker compensation relationships (see FTC endorsement guides) Direct lenders vs brokers - which is cheaper? Not always cheaper to go direct. Here's why: Direct lenders retain the commission as profit (they don't cut you in) Brokers route to the lender with the best terms for your profile (in theory) The "commission" is small (1-4%) vs the total cost of the loan over its term Service quality varies; brokers often have more time and incentive to walk you through the process How to spot a good broker Discloses compensation: tells you upfront they're paid by the lender Routes to specific lenders: tells you which lender they're placing your deal with Shops multiple lenders: not just one Provides written quotes from each lender for comparison Doesn't pressure to sign immediately Member of NEFA, AACFB, or ELFA (industry associations with ethics codes) Broker red flags Upfront fees: reputable brokers don't charge before loan placement Factor rate quotes: if quoting factor rates instead of APR, the deal is likely much more expensive than it appears "Guaranteed approval": no legitimate lender or broker guarantees Refusing to name the placing lender: you should always know who is funding your deal Submitting to many lenders without your consent: can generate multiple credit pulls High-pressure sales tactics: reputable brokers let you take time to decide How we work Fund My Equipment operates as an independent referral service. We earn commissions from partner lenders when applications we route are funded. We disclose this clearly on our disclosures page. Our routing logic prioritizes match (your equipment + credit + business profile) over commission amount. The honest middle ground Most successful equipment buyers use a mix: OEM captive financing when the 0% promotional offer is real and best Bank relationship financing for larger deals and SBA programs Independent broker financing for comparison shopping, sub-prime, or specialty Each has a role. Brokers add value when they actually shop and route well; they reduce value when they're order-takers steering you to their highest-commission lender. Apply for soft-pull pre-qualification at /apply/.Last reviewed: May 28, 2026. Not tax or legal advice.