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NON-DISCRETIONARY COMMISSION MODEL

A credit broker operating under a non-discretionary commission model is a financial intermediary that

facilitates loans or credit transactions between borrowers and lenders. In this context, the commission

they earn is "non-discretionary", this means the amount they earn is dictated by the lender.

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Here's an explanation of the key components:

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Non-Discretionary: Non-discretionary implies that the broker doesn't have the power to make decisions

with respect to the compensation they receive for facilitating the client's transaction.

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Commission Model: The broker earns compensation in the form of commissions for successfully

matching borrowers with lenders. This compensation is typically a percentage of the loan amount or a

flat fee dictated by the lender. Importantly, this commission is earned when a loan is successfully

facilitated, and it is paid by the lender.

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In summary, a credit broker operating under a non-discretionary commission model acts as an

intermediary, connecting borrowers with lenders, with the broker earning a commission based on the

successful completion of the loan transactions. This model aligns the broker's interests with the

borrower's since they only earn a commission when the borrower finds a suitable credit offer and agrees

to proceed with the loan.

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Copyright © 2025 Approved Business Finance Ltd. All rights reserved.

 

Approved Business Finance Ltd is an independent asset finance brokerage and not a lender, as such we can introduce you to a wide range of finance providers depending on your requirements and circumstances. We are not independent finance advisors and so are unable to provide you with independent finance advice. Approved Business Finance Ltd will receive payment(s) or other benefit from the finance provider if you decide to enter into an agreement with them. We will receive commission from our lenders. Approved Business Finance Ltd aims to provide our customers with the highest standards of service. If our service fails to meet your requirements, we will endeavour to find a resolution. 

 

Approved Business Finance Ltd is an Appointed Representative of AFS Compliance Ltd, which is Authorised and Regulated by the Financial Conduct Authority, firm number 625035. Approved Business Finance Ltd is a Franchisee of Asset Finance Solutions (UK) Ltd. Approved Business Finance Ltd is incorporated in England and Wales (company number: 11914104) with its office at Seebeck House, Seebeck Pl, Milton Keynes MK9 8FR

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