Insurance Broker Business Loans

From acquiring a book of business to upgrading compliance systems, fund your brokerage with confidence. Explore business funding through Fundably. Eligibility criteria apply.

Typical Range

£10k – £400k

Average Loan

£60k

for insurance broker

Decision Speed

24–48 hrs

for unsecured loans

Eligibility requirements

Minimum 12 months trading history as an authorised firm
Current authorisation to conduct insurance distribution activities in the UK
Evidence of recurring commission income, typically via management accounts
Personal guarantee usually required from directors or partners

Loan types available

Unsecured Business Loan

Rate: 6.9% – 26.9% APR
Term: 1 – 6 years
Security: No security required
Best for: Acquiring a book of business or goodwill, hiring account handlers, or upgrading compliance and IT systems

Revolving Credit Facility

Rate: 8.9% – 24.9% APR on funds drawn
Term: 12 – 24 month facility, renewable
Security: No fixed security, personal guarantee usually required
Best for: Smoothing cash flow around policy renewal cycles, when commission income can be concentrated in certain months

Secured Business Loan

Rate: 4.9% – 15.9% APR
Term: 1 – 15 years
Security: Commercial property or personal property
Best for: Larger acquisitions of other brokerages, or buying office premises

Representative example

Borrow £60,000 over 36 months at 9.9% APR (fixed). Monthly repayment: ~£1,933. Rates depend on your circumstances and the type of loan.

Common challenges

Regulatory obligations around client money handling and record-keeping add a compliance cost that scales with the size of the book
Client retention on renewal is central to income stability, and losing a large client or panel relationship can materially affect turnover
Commission income can be concentrated around renewal dates, creating uneven cash flow through the year
Insurer panel relationships and commission terms can change, affecting margin on certain lines of business

Bad credit?

Some specialist lenders consider insurance broker businesses with imperfect credit. You may need a personal guarantee or higher rate, but options may be available. Fundably may use a soft credit check for matching, which does not affect your credit score. A hard check may happen if you choose to proceed with a lender.

Frequently asked questions

Can I get finance to buy another broker's book of business?

Yes, this is one of the most common reasons brokerages borrow. Lenders will typically assess the recurring commission income attached to the book, client retention rates under the previous owner, and your own firm's trading history. An unsecured loan is usually the starting point for smaller books, with secured lending considered for larger acquisitions. Lendus can compare offers from lenders experienced in financing book and goodwill acquisitions in the insurance sector.

How can I smooth cash flow around renewal cycles?

A revolving credit facility is well suited to this, letting you draw funds to cover overheads during quieter months and repay as renewal commission income comes through. Because you only pay interest on what you draw, it is generally more cost-effective than a fixed loan for managing the natural peaks and troughs in a brokerage's income. Reviewing your renewal calendar each year helps you size the facility to your actual seasonal pattern.

Does my regulatory status affect my ability to borrow?

Lenders will want to confirm your firm's current authorisation to conduct insurance distribution activities as part of standard due diligence, since this underpins your ability to trade and earn commission. Maintaining good standing with your regulator and clear compliance records supports a stronger application, in the same way a clean trading history would for any regulated business. Keeping your compliance records up to date and easily accessible also helps speed up the application process.

Can I borrow to hire more account handlers?

Yes, an unsecured business loan is commonly used to fund recruitment ahead of, or shortly after, taking on new business, since staff often need to be in place to service new clients from day one. Lenders will typically want to see how the additional headcount links to expected commission growth when assessing the application. Lendus can help you structure the loan so repayments align with when the new business starts generating commission.

Equipment finance for insurance broker businesses

Buying a specific machine or vehicle is usually cheaper than a general business loan, because the asset itself is the security. These are the items insurance broker businesses most often fund, with the price range we see quoted in the UK.

Equipment	Typical price range	Finance page
Office Fit-Out	£10k to £500k	Office Fit-Out finance
Server	£3k to £60k	Server finance
Barber Chair	£600 to £20k	Barber Chair finance
Beauty Couch	£500 to £15k	Beauty Couch finance
Body Shop Equipment	£10k to £200k	Body Shop Equipment finance
Car Wash Equipment	£15k to £250k	Car Wash Equipment finance
Climbing Wall	£10k to £200k	Climbing Wall finance
Commercial Dryer	£2k to £50k	Commercial Dryer finance
Commercial Gym Equipment	£5k to £300k	Commercial Gym Equipment finance
Commercial Washing Machine	£2k to £60k	Commercial Washing Machine finance
Desk Fleet	£2k to £80k	Desk Fleet finance
Diagnostic Equipment	£2k to £30k	Diagnostic Equipment finance

Browse all equipment finance pages

Guides and resources

How to Get a Business Loan Business Loan Eligibility Secured vs Unsecured Best Business Loans UK iwoca Review Funding Circle Review

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For UK limited companies with at least 3 months’ trading and monthly revenue.