Best Business Loan Brokers / Guides / Business loan broker vs going direct to your bank
Guide · reviewed 11 November 2026
Business loan broker vs going direct to your bank
Answer in brief
Go direct to your bank if you have a strong relationship, a simple need and time to wait. Use a broker or matching service if you've been declined, need money quickly, want to compare lenders, or have an unusual situation. If a bank declines you, it should offer to refer you through the Bank Referral Scheme.
Side by side
| Your bank | Broker or matching service | |
|---|---|---|
| Lender choice | One | Many |
| Speed | Varies, can be slow | Often faster for specialist products |
| Cost to you | Arrangement fee may apply | Often free, some charge a fee |
| If declined | Referral offered | Tries other lenders |
The Bank Referral Scheme
Under the Bank Referral Scheme, the UK's largest banks must offer to refer a small business they've declined for finance to designated finance platforms, which share the details with other lenders. It's free and needs your consent.
Questions and answers
Will using a broker hurt my credit score?
Comparing options usually starts with soft checks, which don't affect your score. A lender's full application may use a hard search, so ask before you apply.
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