A guide to business funding

Why business funding costs more than it should

Most business owners pay significantly more than they need to when they access funding. The reason is almost never their credit score or their revenue. Here's what's actually happening — and how to get a better deal.

By Limelight Funding · 6 min read · April 2026
$15,000
Average extra cost added to your total repayment on a $150,000 funding deal when going through a broker — built into your total cost before you ever see it

Most small business owners never realize they used a broker.

They think they talked to a lender. They think they got a fair deal.

They didn't.

The business funding industry runs almost entirely on brokers. They're not just in offices — they're in your inbox, your phone, your social media feed. And the model is designed to be invisible.

Here's exactly how it works — and what you can do instead.


First — how do you know if you're talking to a broker?

Most people can't tell. That's the point. Here's what to look for:

The unsolicited phone call"Hi, I help businesses like yours access fast capital." They ask about your revenue, your needs, your credit. They sound like a lender. They are not. They're collecting your information to sell to lenders — for a fee.
The "you're pre-approved" emailSubject lines like "Fast business funding available" or "We found you a great deal." Click through and you'll land on a broker site — not a lender. Your details go into a database and get sold.
The Facebook or Google ad"Get $10K–$500K for your business. Apply in 60 seconds." Most of these ads lead to broker landing pages or lead aggregators who sell your application to multiple parties simultaneously — while charging fees on every deal placed.
The "funding consultant"Independent operators who call themselves advisors or consultants. They have no obligation to find you the best rate — only to place your deal and collect their 10–12 point commission.

Sound familiar? You've probably already encountered at least one of these.

Now here's what they're actually costing you.


Truth 01

They charge fees you never see

Broker commissions are almost never shown as a line item.

Instead, they're:

You get the full amount you asked for. But you pay it all back — plus the broker's cut, buried inside your total cost.

"I borrowed $100,000 and thought I was getting a good deal. When I actually looked at the total payback it was way more than I expected. The broker's fee was built into the cost — nobody ever explained that to me."

— Restaurant owner, Texas

On a $150,000 deal at a 10-12 point broker fee, that's $30,000+ out of your pocket.

On a $300,000 deal, it can exceed $36,000.

Money you borrowed. Are paying interest on. Never received.


Truth 02

They only show you their pick — not your best option

A broker's job isn't to find you the best rate.

Their job is to place your deal. The lenders they send your application to are almost always the ones paying them the highest commission — not the ones who would give you the best terms.

You could be a perfect candidate for a low-rate lender who would love your business — and a broker will never send them your application, because that lender doesn't pay brokers enough.

With a broker
  • 1–2 lenders, broker's choice
  • Highest commission wins, not best rate
  • No obligation to shop around
  • Markup baked into your total cost
Direct with Limelight
  • Multiple lenders compete for your deal
  • Best fit for your profile, not commission
  • Lenders bid against each other
  • No hidden fees, full transparency

Truth 03

They slow everything down — by design

Every person in the chain adds time.

A broker takes your application, packages it their way, submits it to lenders they choose, waits for responses, negotiates their fee, and then comes back to you.

What should take hours takes days — sometimes weeks.

"I needed funding for a job starting in three days. The broker kept saying 'we're working on it.' I lost the contract."

— Construction business owner, Florida

When you need capital fast — to cover payroll, take on a new contract, manage a cash flow gap — a broker's timeline can cost you the opportunity entirely.


Truth 04

Your information gets sold and shared

Many broker platforms and funding ads are actually lead generation operations.

When you fill out their form, your business details — revenue, credit score, EIN, contact info — get packaged and sold to multiple lenders and brokers at once.

That's why you suddenly get five calls from "lenders" after filling out one form.

They all bought your lead. Each one is a broker. Each one is trying to close you so they can collect their fee.

Your sensitive financial information is now in the hands of multiple parties you never consented to share it with. Under FTC guidelines, brokers are supposed to disclose their fees — but in practice, it's buried in fine print or absent entirely.


Truth 05

Most businesses have no idea it happened

This is the most important truth.

The broker model isn't just expensive — it's invisible.

Brokers present themselves as:

Their websites look like lender websites. Their pitch sounds like a lender's pitch. The word "broker" almost never appears.

Ask yourself honestly:

If the answer to any of those is no — you used a broker and likely paid for it without knowing.


Skip the broker. See what you actually qualify for.

Limelight connects your business directly to accredited lenders — no broker, no hidden fees. Lenders compete for your deal. Limelight charges a platform fee well below the industry standard of 10-12 points brokers typically take — and it's disclosed clearly before you accept any offer. No surprises, nothing hidden.

Check my eligibility — it's free →

Takes 5 minutes  ·  Won't affect your credit score  ·  No commitment