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Equipment Leasing Broker Commission Rates

Equipment leasing broker commissions are rarely as simple as “this lender pays 5%.”

A broker may be paid in points on the amount financed, through a pricing spread, through a house commission split, by a fixed referral fee or through a combination permitted by the broker agreement. The number also means very little until you know what it is calculated on, when it is earned and what deductions apply.

A five-point gross commission is not necessarily five points of income to the individual broker.

Quick Answer: There is no universal equipment leasing broker commission rate. Compensation can be calculated as points on the financed amount, lender-paid commission, pricing participation, a referral fee or a brokerage split. Public U.S. funding programs advertise maximums ranging as high as 10–15 points, but those are program caps, not universal market averages. Broker agreements control the actual payout.

What does a “point” mean in equipment leasing?

In broker compensation, one point generally means 1% of the commissionable transaction base.

If the agreement defines the commission base as USD $100,000 of funded equipment financing:

One point equals USD $1,000.

Three points equal USD $3,000.

Five points equal USD $5,000.

The important phrase is commissionable transaction base.

Do not automatically assume that means the equipment's sticker price.

Depending on the funding program, commission may be calculated on the amount financed, equipment cost, net funded amount or another amount defined in the broker agreement.

For example, a USD $150,000 machine with a USD $30,000 customer down payment creates USD $120,000 of financing before considering taxes, eligible soft costs or other items.

A four-point commission based on USD $120,000 is USD $4,800.

A four-point commission based on USD $150,000 would instead be USD $6,000.

Read the compensation agreement before quoting your expected income.

Canadian brokers who want the country-specific benchmark should use Mehmi’s existing Equipment Finance Broker Commission Rates Canada 2026 rather than treating a U.S. funding program as evidence of Canadian pricing.

What commission rates do U.S. equipment leasing programs advertise?

There is no single U.S. market commission schedule.

Public lender programs demonstrate how widely compensation structures can vary.

North Star Leasing currently advertises broker commissions of up to 10 points on its broker program.

Ameris Bank Equipment Finance currently advertises up to 15-point commissions through its equipment-finance broker program.

TimePayment takes another approach: its broker page says participating brokers can specify their own commission, subject to the program, up to 15% of the sale amount, and says the commission can be incorporated into the financed transaction.

Those numbers should not be presented as typical U.S. broker commissions.

They are published maximums from specific programs.

Actual compensation can be substantially lower depending on asset type, transaction size, customer profile, competition, pricing constraints and the funding agreement.

The practical lesson is that asking, “What is the industry commission?” is less useful than asking:

What does this funding source permit on this specific transaction, and what happens to the customer's pricing as my compensation changes?

What is the Canadian benchmark?

Canada also does not have one universal commission rate.

Mehmi’s existing Canada-specific commission article currently uses an internal working benchmark of roughly 3% to 7.5% gross on many smaller and mid-sized equipment transactions, with percentages generally compressing on larger or more competitive files. That is a Mehmi-published benchmark rather than a statutory rate or universal industry schedule.

That existing page should remain the primary Canadian benchmark article.

For brokers deciding how they want to participate in the transaction rather than only what percentage they can earn, Mehmi’s Equipment Finance Broker Program Canada guide explains the more important distinction between sourcing a lead and managing a file through funding.

A broker who wants a lighter-touch role should instead compare the Equipment Financing Referral Partner Program.

Those are different jobs and should not automatically receive identical economics.

How do equipment leasing brokers actually get paid?

Several compensation structures can appear in equipment leasing and finance.

Lender- or lessor-paid commission

The financing source pays the broker after an eligible transaction funds.

The customer may not write a separate cheque to the broker, but that does not mean compensation has no economic relationship to transaction pricing.

Understand exactly how the funding source generates and permits the commission.

Points or pricing participation

The funding source may give the broker a base structure and allow compensation within defined limits.

In equipment finance this is sometimes discussed in terms such as a buy rate and sell rate, points or yield participation.

Do not casually describe every lease pricing factor as an interest rate.

A lease can contain rent factors, residual values, purchase options and other economics that make a simple interest-rate comparison incomplete.

Broker-paid split

An independent broker or sub-broker may send a transaction through a larger brokerage or platform.

The house receives the gross commission and then pays the originating broker an agreed percentage.

Mehmi’s Equipment Finance Sub-Broker Program Canada guide explains how this differs from building a direct lender panel yourself.

Referral fee

A dealer, consultant or another partner may simply introduce the customer and let the financing brokerage handle qualification, placement and closing.

That generally involves less work and may produce different compensation from full origination.

Mehmi’s Equipment Financing Referrals: Build Partner Income guide covers this referral model in greater detail.

Borrower-paid brokerage fee

Certain commercial transactions may include a separately documented client-paid brokerage or advisory fee.

Whether that structure is permitted and how it must be disclosed depends on the financing product, jurisdiction and broker agreement.

Never assume that a fee permitted on one Canadian or U.S. transaction can simply be copied onto another.

What is the difference between gross commission and your split?

This is where new brokers frequently overestimate income.

Suppose a transaction generates a four-point gross commission.

That four points may belong initially to the brokerage or originating platform.

If your compensation arrangement provides a 70% broker split, you receive 70% of that gross commission rather than four full points.

The calculation is:

Gross commission × broker split = broker payout before other applicable deductions and tax

This is why comparing two programs only by headline points can be misleading.

One program might provide more gross commission but a smaller split.

Another could offer a lower maximum commission but a much stronger split and better funding conversion.

A broker comparing partner structures should also read Mehmi’s Commercial Finance Broker Partner Program for Canadian Independents, because relationship ownership, underwriting support and backend work can be as economically important as the split itself.

Illustrative example: USD $160,000 equipment transaction

Assume a U.S. broker sources a piece of equipment priced at USD $160,000.

The customer contributes 10%, or USD $16,000.

For this illustration, assume the broker agreement defines the commission base as the USD $144,000 net amount financed.

Assume:

• Gross broker commission: 4 points
• Broker's house split: 70%
• Payout frequency: one payment after funding
• Broker administration deductions: USD $0 assumed
• Referral split: none assumed
• Chargeback or early-default adjustment: none assumed
• Taxes: excluded

Four percent of USD $144,000 produces a USD $5,760 gross commission.

At a 70% broker split, the individual broker receives USD $4,032 before applicable business expenses and taxes.

The remaining USD $1,728 belongs to the house under the assumed 70/30 split.

This is not a Mehmi commission quote, funding-program promise or customer transaction.

It is simply commission arithmetic.

A monthly lessee payment and total lease repayment cannot responsibly be calculated from this information alone because no lease term, buy rate, residual, purchase option, taxes or other pricing terms have been specified.

That distinction matters: broker commission math and lessee financing-cost math are not the same calculation.

Why do commission percentages often change with transaction size?

Broker work does not increase perfectly in proportion with ticket size.

A USD $40,000 equipment transaction can still require customer qualification, asset verification, application review, lender placement, conditions, insurance and documentation.

A USD $400,000 transaction may require more underwriting, but it is not automatically ten times the work.

At the same time, larger high-quality transactions often attract more lender competition and greater pricing sensitivity.

That is why many funding programs use different compensation caps or pricing tolerances by ticket size.

Do not respond by forcing the highest available commission onto every file.

A broker earns nothing on a transaction that the customer rejects because the structure no longer makes economic sense.

When is commission actually earned?

The broker agreement controls this, but approval and funding are different events.

An equipment financing approval may still require final invoices, insurance, signatures, equipment verification, corporate documents, down payment, delivery confirmation or other closing conditions.

Until those conditions are completed, there may be no funded transaction on which a commission can be paid.

Mehmi’s Sales Agent Program: Equipment Financing Paid Per Funded Deal explains why partner economics are better tracked from completed funding rather than application or approval volume.

This has an important practical consequence:

A broker with a lower quoted commission rate but a strong funding ratio can produce more income than a broker continually chasing maximum-point transactions that never close.

What can reduce the commission after you calculate it?

Read the partner agreement for deductions and contingencies.

Potential items can include a house split, outside referral share, program administration expenses or contractual adjustments related to the transaction.

Some partner agreements can also contain provisions dealing with early cancellation, unwound transactions, fraud, non-delivery, early default or another event after initial funding.

Do not assume the rules are identical across funding sources.

The broker should know:

When is my commission legally earned?

When is it paid?

What event can delay it?

Can any amount be reversed?

Who absorbs an outside referral fee?

Who owns renewals or repeat equipment purchases?

Does the payout change if another broker becomes involved?

Mehmi’s Equipment Finance Broker CRM Guide Canada recommends tracking funded amount, expected commission, actual gross commission, broker split and payment status rather than treating an approval as revenue.

How do co-broker splits work?

A co-broker transaction adds another layer between gross commission and personal income.

Suppose one broker owns the client relationship but cannot place the equipment.

A second brokerage has a suitable funding source and handles restructuring and closing.

The parties may agree to split the resulting fee according to their written arrangement.

That split should be clear before the file is worked, not negotiated after money has funded.

Define who owns the client relationship, who communicates with the borrower, who pays any referral source, how future transactions are treated and exactly what revenue is subject to the split.

For Canadian declined files, Mehmi’s Broker Co-Brokering Program for Declined Deals provides a practical example of why co-brokering is more than simply forwarding an application.

Does the broker earn more on a lease than an equipment loan?

Not necessarily.

The legal and economic structure of the transaction can affect compensation, but the words lease and loan alone do not determine broker income.

A lease may give a lessor a particular pricing framework that supports broker participation.

Another funding source may offer tighter economics.

A secured equipment loan may have its own origination or broker-compensation rules.

The right question is not:

“Which product pays me the most?”

It is:

“Which suitable structure produces acceptable terms for this client while compensating the broker under the applicable agreement?”

Pushing a customer into a lease solely because the broker earns more is a poor long-term business model and can create disclosure and suitability problems.

Brokers still learning that distinction can start with Mehmi’s How to Become an Equipment Finance Broker in Canada, which focuses on underwriting, structure and funding rather than treating the job as simple rate markup.

What should U.S. equipment leasing brokers know about compliance?

Do not assume commercial equipment finance is unregulated simply because the customer is a business.

Requirements vary materially by state and transaction structure.

California provides a useful example. The California Department of Financial Protection and Innovation states that the California Financing Law regulates persons making and brokering consumer and commercial loans, subject to its statutory exceptions. DFPI also notes that a broker license under that law has defined limits on what lenders the broker may broker to.

Separately, California's commercial-financing disclosure regime covers several forms of commercial financing, including lease financing transactions, and requires specified cost-and-term disclosures when the rules apply.

The important point is that a commercial loan broker, equipment-lease originator and referral source may not fall under identical rules.

Before entering a new state, verify the actual structure and state requirements rather than copying another broker's process.

What should Canadian equipment leasing brokers know?

Canada does not have one nationwide statutory commission schedule for equipment-leasing brokers.

Compensation can vary by funding source, broker model, transaction size and responsibilities.

A referral arrangement is also different from a broker who packages the application, selects the funding source, negotiates structure and manages conditions.

Canadian brokers who want a low-complexity introduction model should review Mehmi’s Get Paid for Referring Equipment Financing Deals Canada guide.

Brokers performing broader origination work can instead compare Mehmi’s Equipment Finance Broker Program Canada.

Do not assume tax treatment of commissions or brokerage services from an online percentage example. Your accountant should review GST/HST or QST treatment based on the actual services and business structure.

How should you compare two broker programs?

The commission percentage should be only one part of the comparison.

Ask what amount the percentage is calculated on.

Then establish your actual split.

Determine whether the program permits pricing participation and what limits apply.

Ask when compensation becomes earned and when cash is paid.

Review any adjustment or clawback provisions.

Then look beyond the rate sheet.

A program that helps you place only the easiest files may generate less total income than one that supports used equipment, private sales, weaker-credit applicants or more complex asset types.

The reverse is also possible: a program offering a very high potential commission may be commercially unattractive if few of your customers accept its resulting structures.

What ultimately matters is:

funded volume × actual net payout per funded transaction.

Not the largest number printed on a broker recruitment page.

FAQ: Equipment Leasing Broker Commission Rates

What is a normal equipment leasing broker commission?

There is no universal rate. Compensation varies by funding source, ticket size, structure, borrower, asset and broker agreement. Published U.S. programs currently advertise maximums as high as 10–15 points, but those figures are program caps and should not be presented as a general market average.

What does five points mean?

If the broker agreement uses the funded amount as the commission base, five points means 5% of that amount. A USD $100,000 commission base at five points would therefore generate USD $5,000 of gross commission before splits or other contractual deductions.

Is the broker paid by the lender or customer?

Either structure can exist depending on the transaction and jurisdiction. The funder may compensate the broker, the customer may pay a separately disclosed brokerage fee, or compensation may involve another permitted structure. The agreements and applicable law control.

Does the broker get paid when the transaction is approved?

Not necessarily. Many programs tie payout to completed funding. A conditional approval can still fail to close if documentation, insurance, asset, vendor or other funding conditions are not satisfied.

Is broker commission calculated before or after the customer's down payment?

It depends on the funding agreement. Some programs calculate compensation from the actual financed amount, while others can use a different defined transaction base. Confirm the formula rather than calculating from the equipment price automatically.

What is a good broker split?

There is no universal percentage. Compare the broker's actual share of gross commission with the amount of underwriting, lender placement, documentation, compliance and closing support the platform provides. A higher split is not automatically better if materially fewer transactions fund.

Can an equipment dealer receive a referral commission?

Potentially, subject to the funding program, dealer arrangement and applicable law. A dealer making a simple introduction should distinguish that role from actively arranging or negotiating financing. Compensation and disclosure should be agreed before the transaction.

Can a commission be taken back after funding?

Possibly if the applicable broker agreement contains a contractual adjustment or clawback provision. Review exactly what events can trigger one before submitting transactions to a funding source.

Build your broker economics around funded deals

Equipment leasing broker income is not determined by one headline commission percentage.

Start with the commission base.

Apply the actual rate or points.

Apply your house or co-broker split.

Account for contractual deductions.

Then measure how often approved transactions actually reach funding.

A broker earning four points on clean, repeatable files can build a stronger business than one pursuing every advertised maximum while losing customers or funding sources over pricing and structure.

Mehmi Financial Group operates as a commercial financing brokerage and intermediary rather than controlling each independent financing provider's underwriting or compensation policy.

If you are evaluating a broker relationship or have a live equipment transaction, contact Mehmi Financial Group at 833-863-4644 through the verified Mehmi Financial Group contact page. The contact page currently confirms the toll-free number.

For a live deal, be ready to discuss the financing amount, U.S. or Canada, state or province, equipment or use of funds, and required timing so the transaction and available partner structure can be evaluated properly.

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