Brokers are engaged when a business has been declined by a lender(s) or a business owner has had too many negative interactions with the lending process to stomach another round.
Brokers engage their network of lenders, typically lenders that will payout their fees, and they bring the deal forward. Brokers stay between lender and business until paid, and try to stay there extracting fees in perpetuity.
Broker competency is rarely in Commercial Lending. The inability to add value to the application/approval process while staying in between lender and business results in a frustrating process for lenders; and a sub-optimal outcome for businesses.
The Fee Structure is often opaque and isn't a true market rate. Brokers often layer in fees issuing an all in rate above and beyond what the lender actually offers. That fee is in place as long as that borrowing is.
Business Owners don't actually discover all available options, they often don't get price discovery since rates are opaque, and the only true value received is a few phone calls. Lenders are left trying to piece together an application with partial information and a third party who doesn't understand their requirements. Business owners suffer.