A commercial loan broker is a specialist intermediary between businesses seeking funding and commercial lenders, acting on behalf of the client business. Taking advantage of the services provided by a commercial broker when seeking a business loan is essential where no established relationship exists with a bank or the client is not sure what the going rate is for any particular funding type. The consequences could be that any business loan taken is over priced, that could be a very costly mistake indeed!The typical broker will have access to a network of lenders and have specific knowledge of any loan criteria, thereby allowing the targeting of the right lender for any set of business requirements and circumstances, therefore maximising the chances of a successful application.Many customers of commercial loan brokers have usually already approached a bank and had a loan application turned down, sometimes more than once! The reasons for this are numerous but could be as simple as the client not presenting their business plan very well, insufficient security or maybe the client is regarded as sub-prime by the bank lenders. However once a business has exhausted the bank route, few have the knowledge of where to go next. In fact, approaching a commercial loan specialist in the first place could have resulted in the placement of the financial requirement with the right lender first time!A good commercial broker will initially take the time to understand your business and future plans before approaching any lender. If the business proposition has the potential to be financed then the broker will package the deal, select the most appropriate lender or lenders and ensure that any offer is priced competitively.Brokers normally make a commission on any business loan placed, but not always, some will always charge a broker fee, others will only charge where no commission is available. The most important thing where a fee is charged is that it is success based, upfront broker fees should be avoided at all costs! One possible exception to this is where a business plan does not exist and your intermediary offers this service.