Commercial Loan Broker »
Commercial loan broker is a term of art used to describe an individual who acts as an intermediary between commercial lenders and businesses or individuals seeking a commercial loan. Commercial loan broker is a very general term and encompasses individuals who have a variety of specialties. For example, one type of commercial loan broker is a commercial loan mortgage broker, whose specialty is pairing commercial mortgage lenders and individuals or businesses seeking a commercial mortgage (usually in connection with the purchase or refinancing of commercial real estate). Like generic loan brokers, commercial loan brokers can be compensated by either the lender or the borrower, but in either case commercial loan brokers are usually paid on a commission basis consisting of a flat fee or a percentage of the loan payable upon the successful closing of the loan.
Commercial loan brokers serve a useful purpose in surveying the various loan alternatives for a business or individual and identifying the most borrower favorable loan available. However, a business or individual seeking business loans should hesitate before engaging a commercial loan broker whose fee is payable by the borrower until that business or individual is certain that the increased cost of engaging a commercial loan broker is outweighed by the benefit of such a broker.
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