Introducers are usually paid commission or an introducer’s fee by the lender, which is disclosed to the borrower, but rates vary considerably. Some introducers also charge a separate broker fee.
Usually up to 1 per cent procuration fee is paid, according to Steven Nicholas, chief executive of Tiuta.
Paul Aitken, chief executive of Borro, said Borro’s introducer programme allows IFAs, mortgage and commercial brokers, accountants, solicitors, lawyers, wealth managers and tax advisers to offer clients short-term loans from £1,000 to £1m.
He said introducers received commission per referred loan, based on the duration of their client’s loan term.