Spark Finance is a credit broker. We are funded by commission paid by lenders when a business finance application is successfully placed. This page explains exactly how this works, what it means for you, and how we ensure our commercial relationships do not compromise the service we provide.
How we earn commission
When Spark Finance successfully arranges finance for a business through one of our lender panel members, we receive a commission from that lender. This commission is typically a percentage of the loan or facility amount, or in some cases a flat arrangement fee.
Commission is paid by the lender, not by the business applicant. Spark Finance does not charge upfront fees to business applicants. You do not pay us anything to submit an application, receive options from lenders, or receive our advisory services. Our fee is earned from lenders on a success-only basis.
The amount of commission we receive varies by lender and product type. It does not affect the interest rate or charges that you, as the borrower, pay to the lender. The lender's pricing to you is set by their underwriting criteria and current pricing, not by our commission level.
Commission disclosure
Before you proceed with any finance introduction through Spark Finance, we disclose the commission we will receive. This is a legal requirement under FCA consumer credit rules for regulated credit, and we apply the same standard of transparency to all our business finance introductions.
If you ask us to disclose the specific amount or percentage of commission on any particular transaction, we will do so. You can request this information at any time.
Does commission affect our recommendations?
No. Spark Finance's recommendations to clients are based on the client's specific circumstances, funding requirements, and the most appropriate available options on our panel - not on the commission level of individual lenders.
Different lenders pay different commission rates. If we systematically steered clients towards higher-commission lenders regardless of suitability, we would damage our client relationships and our reputation. Our business model depends on clients getting appropriate finance and returning to us or referring others. This commercial incentive aligns with the interests of our clients.
We do not operate a commission-tiering model that automatically prioritises lenders based on their commission rate. Lender recommendations are made on the basis of product suitability, pricing, decision speed, and the lender's current appetite for the specific application.
No upfront fees
Spark Finance does not charge upfront fees to business applicants. We do not charge for:
- Initial consultations or discussions about finance options
- Submitting your application to lenders
- Receiving indicative terms from lenders
- Our advisory service during the application process
- Declining an offer that does not suit you
Lender panel and independence
Spark Finance works with a panel of 250+ specialist UK lenders. We are not tied to any single lender or lender group. We do not have exclusive arrangements that would prevent us from using other lenders if they offer better solutions for a client.
Some lenders appear on our panel because they have invested in building a relationship with us, training our team, or providing data for our systems. This does not give those lenders preferential placement in our recommendations.
We are a broker, not an independent financial adviser. We can only recommend lenders that are members of our panel. If you believe a specific lender outside our panel might be appropriate for your needs, we are happy to discuss this.
FCA regulation
Spark Finance Ltd is authorised and regulated by the Financial Conduct Authority as a credit broker (FRN 958123). Our FCA authorisation requires us to treat customers fairly, disclose commission, and not engage in misleading practices. You can verify our FCA registration at register.fca.org.uk.
Our company number is 10128297. Our registered address is 18 John Stow House, London, EC3A 7JB.