Glossary
What is Broker?
A loan broker is a company or individual that helps businesses find financing by connecting them with lenders, rather than lending its own money. Brokers typically gather your information, identify lenders whose criteria fit your profile, and help you compare offers. They are often compensated by the lender, the borrower, or both, and you should ask how compensation works. A broker can save time and widen your options, but the lender makes the final credit decision.
Example
A contractor works with a broker who submits one application to several equipment lenders and presents the resulting offers.
Related terms
Questions about an offer? Your advisor will explain every term.