Guide
The real cost of broker commission
Most asset finance brokers say their service is free. It isn't: they're paid a commission by the lender, and that cost ends up in your payments. Here's how it works, what it typically adds up to, and what to ask before you sign.
Last updated: October 2026
The short answer
- Brokers are usually paid a commission by the lender, worked out as a percentage of the amount you borrow.
- One UK lender puts typical commission at 1–5% for hard assets like vans and machinery, and 3–10% for soft assets like IT and software.
- On a £60,000 van or machine, that's roughly £600 to £3,000. The more you borrow, the more the broker earns.
How broker commission works
When a broker introduces you to a lender and your deal completes, the lender pays the broker a commission. Brokers that don't charge you a fee rely on this as their income. As one broker's own disclosure puts it, the payments you make to the lender include the commission the lender pays them.
Commission is normally a percentage of the amount financed, so it grows with the size of the deal, even though the work involved in arranging a bigger deal is often much the same.
Typical commission rates in the UK
Published figures give a sense of the range:
- One UK business lender says broker commission is typically 1–5% of the advance for hard assets, and 3–10% for soft assets.
- One large UK accountancy firm lists 0.5–2.5% of the financed amount as the commission it may receive when it introduces clients to asset finance partners.
Sources: UK lender's broker guide, UK accountancy firm's commission policy.
What it adds up to
| Amount financed | At 1% | At 3% | At 5% |
|---|---|---|---|
| £25,000 | £250 | £750 | £1,250 |
| £60,000 | £600 | £1,800 | £3,000 |
| £150,000 | £1,500 | £4,500 | £7,500 |
| £300,000 | £3,000 | £9,000 | £15,000 |
A business that finances a few assets a year can easily pay several thousand pounds in commission.
Work out your own figure
Typical broker commission
£1,800
ZeroComm for the first year
£360
Difference
£1,440
Illustration only. ZeroComm figure is £30 a month for 12 months, excluding VAT, and covers up to three deals in that year. Actual commission depends on the broker, lender and deal.
Does a broker have to tell you?
Yes. Funders require brokers to disclose the commission they receive. Look for the figure in pounds in your paperwork and check it before you sign, so you know exactly what it adds to the total cost of your facility.
Questions to ask before you sign
- How much commission will you receive on this deal, in pounds?
- Could I get a lower rate if you took less commission?
- How many lenders did you approach, and why did you pick this one?
- Are there any other fees, such as documentation or option-to-purchase fees?
- Can I see the full cost of the agreement before I commit?
Common questions
Do asset finance brokers charge commission?
Most do. Many brokers tell you their service is free because you pay them no fee. Instead, the lender pays them a commission when your deal completes, and the cost of that commission is built into the payments you make to the lender.
How much commission does an asset finance broker earn?
It is usually a percentage of the amount you borrow. One UK lender says broker commission is typically 1–5% of the advance for hard assets such as vehicles and machinery, and 3–10% for soft assets such as IT, software and fit-outs. On a £60,000 deal, 1–5% is £600 to £3,000.
Does a broker have to tell me how much commission they earn?
Yes. Funders require brokers to disclose the commission they receive on your deal. Check the figure in pounds before you sign, so you can see exactly what it adds to the cost of your facility.
A different way to pay for finance
ZeroComm takes no commission from lenders. You get quotes from multiple funders, see every cost upfront and choose on your terms, for a simple subscription of £30 a month covering up to three deals a year. Read more in our guide to hire purchase vs finance lease, or join the waitlist.
This guide is general information, not financial advice. Commission rates vary by broker, lender and deal. Prices shown exclude VAT.