There is no fixed industry-wide fee for SME loan brokers in Singapore. You may come across very different fee structures when comparing brokers.
Some intermediaries charge around 1%–2% for facilitating an application or forwarding documentation.
Other brokers may quote 10%–20% or more of the financing amount.
At Cornerstone Capital Services, our brokerage fee is generally 3%–7% of the financing successfully raised, with no upfront brokerage fee.
So why can the numbers be so different?
What does an SME loan broker actually charge for?
The fee is ultimately for the work involved in getting the financing from assessment through to completion.
This can include:
- Assessing the company’s financial position
- Understanding the financing requirement
- Identifying suitable financing routes
- Selecting relevant lenders
- Structuring the application
- Coordinating with lenders and bankers
- Handling credit queries and additional documentation
- Managing the case through approval and disbursement
The percentage charged by a broker does not necessarily tell you how much work they are doing.
A broker charging 10%–20% may not necessarily be providing 10 times the service of one charging 2%–3%.
That is why it is worth looking beyond the headline percentage and understanding what you are actually paying for.
What does Cornerstone charge?
At Cornerstone, our standard brokerage fee is generally 3%–7% of the financing successfully raised.
There is no upfront brokerage fee.
The fee is success-based and becomes payable only when financing is successfully obtained, according to the agreed terms.
For example:
Financing successfully raised: S$300,000
Agreed brokerage fee: 5%
Brokerage fee: S$15,000
The fee is charged once.
The exact percentage is quoted after we assess the case, as the complexity and financing requirement can vary from one business to another.
Why don’t we charge 10%–20%?
We don’t believe a high percentage automatically represents higher value.
If a broker is performing the same core work — assessing the business, identifying lenders, managing the application and coordinating the financing process — a significantly higher percentage can result in a substantial difference in what the business owner ultimately pays.
For example:
| Financing | 5% fee | 10% fee | 20% fee |
|---|---|---|---|
| S$100,000 | S$5,000 | S$10,000 | S$20,000 |
| S$300,000 | S$15,000 | S$30,000 | S$60,000 |
| S$500,000 | S$25,000 | S$50,000 | S$100,000 |
The difference becomes significant as the financing quantum increases.
Our approach is to keep the brokerage fee within a reasonable range while still providing the full financing service from assessment through to disbursement.
What about trade facilities?
Trade facilities can be structured differently from conventional business loans.
For trade facilities, the brokerage fee may be calculated based on the maximum approved facility limit rather than the amount actually drawn, depending on the arrangement.
The applicable fee calculation is agreed and stated before proceeding.
What should you ask before engaging a broker?
Don’t just ask:
“What percentage do you charge?”
Also ask:
- Is there an upfront fee?
- When does the fee become payable?
- Is it charged only when financing is successfully obtained?
- What amount is the percentage calculated against?
- What does the broker actually handle?
- Does the broker manage the case through to disbursement?
The headline percentage matters because brokerage fees can become substantial on larger financing amounts.
Speak to us about your financing requirement
At Cornerstone Capital Services, our brokerage fee is generally 3%–7% of the financing successfully raised, with no upfront brokerage fee.
Send us your company name, approximate amount required and purpose of funding, and we can assess the financing requirement before discussing the applicable fee.
Speak to us or read How It Works.
