How much do business loan brokers charge the buyer?
We're looking to acquire an existing business and have been connected with a business loan broker. They said that they will help us put together a loan application and manage the entire end to end process of securing the loan from the bank. They are connected with a few different loan specialists in the different top 5 banks but they have a preferred partner among them.
They have asked for nearly 3% of the loan amount to help with this transaction, and this is definitely a lot higher than we imagined. They will be compensated from the bank as they are bringing them a client - similar to how residential mortgage brokers operate. Is this 3% of loan amount fee normal?
If anyone knows some business loan broker that they recommend, please share!