How to give your broker feedback and resolve a dispute

Most problems with a broker are fixed by one clear, written message: what happened, what you expected, and what you want now. If that does not work, escalate in order: the brokerage's principal, then the lender if the issue sits with the offer, then the state regulator where the broker is registered. Keep every step in writing, because a clean record is what gets a dispute resolved.

Feedback runs both ways. Telling your broker what is working, and what is not, early in the deal makes the rest of it faster.

Give feedback while the deal is live

Brokers manage many files at once. The ones who get businesses funded consistently are the ones who hear from clients early, when a fix still costs nothing. Useful feedback is specific and tied to the deal:

• "Your Tuesday update was exactly what I needed. Can we keep that cadence?"
• "I would rather get one email a day than three calls."
• "The offer summary left out the origination fee. Please send the lender's own document with every option."
• "I need decisions to go through my CFO as well. Please copy her on everything."

That last kind of note prevents most disputes before they start. Our guide on how to communicate with your broker covers the kickoff email that sets this up on day one.

The common disputes, and the fix for each

Most of these are communication gaps, and a professional broker resolves them in a day once asked. The last row is different. If your information was passed to parties you did not authorise, treat it as a serious issue and move to the escalation path below.

How to raise an issue: the five-part email

Keep it short and factual. A broker can act on this in minutes:

1. The deal. Your business name, the amount and product, and the lender if known.
2. What happened. Dates and facts, no adjectives.
3. What you expected. Point to the email, letter or offer that set the expectation.
4. What you want. A refund of a specific amount, a corrected offer, a list of lenders, a call by Friday.
5. When. A reasonable date, usually two business days.

A sample: "On October 14 you sent an offer for $60,000 with a $1,200 origination fee. The closing documents show $2,400. Please send the lender's explanation or a corrected agreement by Thursday. I will not sign until the numbers match."

The escalation path

Step 1: your broker, in writing. Most issues end here.

Step 2: the principal. In a larger brokerage, the person you work with may not own the decision. Ask for the owner or managing partner by name. In a one-person shop, step 1 and step 2 are the same, so go straight to step 3 if you are stuck.

Step 3: the lender. If the dispute is about the offer itself, the lender owns it. You have the right to contact the lender directly, and most have a client services or compliance contact. Lenders care about how brokers represent them, and a short note to compliance gets read.

Step 4: the state regulator. In states that register commercial financing brokers or providers, the regulator takes complaints. Details follow below.

Step 5: outside help. For deceptive practices, you can also report to the Federal Trade Commission at ReportFraud.ftc.gov or your state attorney general. To recover money, regulators point you to a private attorney or small claims court.

Our guide to your rights when a broker arranges financing covers what the law entitles you to. This section covers how to use it.

Which regulators take complaints

A few notes from the regulators' own pages:

• Virginia. The Bureau's complaint page asks you not to include account numbers, and says the Bureau cannot act as your attorney.
• Connecticut. The Department forwards your complaint to the company and sends you an acknowledgment. It enforces registration: the Hartford Business Journal reported a $10,000 civil penalty plus $2,000 in back registration fees against an online lender that made 418 financing agreements with Connecticut businesses without registering.
• Utah. Mayer Brown reports penalties of $500 per violation, capped at $20,000 for violations from the same transaction documents, with higher penalties for repeat violators. The law gives no private right of action, so the state enforces it.
• Texas. The OCCC says it establishes the facts and applies the law, or mediates where appropriate. Complaints are generally open records, and the office does not step in once a matter is in litigation.
• California. The DFPI has asked small businesses to report unfair, deceptive or abusive treatment in merchant cash advances and other commercial financing. Those protections took effect October 1, 2023.

Missouri also registers commercial financing brokers through its Division of Finance. In states without registration, start with the attorney general's consumer protection office.

What to include in a complaint

Regulators move faster with a tidy file:

• The broker's legal name, registration or NMLS number, and register number
• A one-page timeline with dates
• The engagement letter, offer, disclosure and closing documents
• The emails where you raised the issue, and the replies
• What outcome you are asking for

Redact account numbers. The regulator does not need them to start.

When the problem is the register entry

If a broker's entry on the register has the wrong address, phone number, licence or status, use the corrections page. Every entry lists its sources and a last checked date, so we can trace and fix the record. Brokers can claim their entry for free and keep it current themselves.

Corrections are for facts. Disputes about a deal belong with the broker, the lender or the regulator, using the path above.

Ending the relationship cleanly

If trust is gone, close it in writing. Ask for a list of every lender that received your file, confirm no further submissions, and request that your documents be deleted. Our guide on switching brokers mid-deal covers how to do this without losing lender goodwill.

When you are ready for a fresh start, check a broker's standing first, or use the match form to find one whose entry is verified and shows fees in writing.