How Sub-Broker Commissions Work in Canada

Becoming an equipment finance sub-broker is one of the fastest-growing side and full-time income opportunities in Canada’s financial services sector. Unlike traditional brokers, sub-brokers don’t manage underwriting or compliance — instead, they focus on sourcing clients, guiding applications, and earning a commission for every funded deal.

The commission structure depends on the deal size, financing type, and lender relationship. Here’s how it breaks down.

Factors That Affect Commission Payouts

• Deal Size: Larger leases or loans pay higher absolute commissions. A $500,000 refinance deal can be more lucrative than ten $50,000 working capital loans.
• Type of Financing: Riskier financing (like working capital) often pays more than equipment loans, where spreads are thinner.
• Lender Commission Split: Third-party lenders often require a split, while in-house financing typically pays higher because there’s no external share.
• Client Source: Vendor/dealer referrals often qualify for volume bonuses — rewarding sub-brokers who bring consistent deal flow.

Typical Commission Ranges in Canada

Equipment Financing & Leasing

• 3% – 6% of funded amount
• Example: A $100,000 equipment lease could pay $3,000–$6,000.
• Insight: Because equipment is asset-backed, commissions are steady and predictable, making this the core revenue driver for most sub-brokers.

Working Capital Loans & Merchant Cash Advances

• 5% – 10% of funded amount
• Example: A $50,000 loan could pay $2,500–$5,000.
• Trend: Higher commissions reflect higher risk. Demand is growing — Statistics Canada notes over 40% of SMEs report short-term cash flow challenges, making this a lucrative segment.

Business Loans (Term, Secured, Unsecured)

• 1% – 3% of funded amount
• Example: A $250,000 term loan could pay $2,500–$7,500.
• Best for: Established businesses with strong credit who need structured financing.

Sale-Leaseback / Refinancing

• 2% – 5% of deal size
• Example: A $500,000 refinance could generate $10,000–$25,000.
• Insight: These are growing rapidly in industries like trucking and manufacturing, as firms unlock equity tied up in owned equipment.

Vendor/Dealer Partnerships

• Sub-brokers who build steady vendor pipelines often receive:
  • Volume bonuses
  • Priority lender processing
  • Higher-than-standard commission splits

Realistic Annual Earnings for Canadian Sub-Brokers

Case Example: Ontario Sub-Broker in Trucking & Trailers

A sub-broker based in Ontario built relationships with independent trucking firms and trailer vendors. By focusing on transportation:

• Volume: Averaged 6 deals/month at $80,000 each, or $480,000 funded per month.
• Commission Rate: 4% average.
• Monthly Income: ≈ $19,200.
• Annual Income: ≈ $230,000+.

Because trucking is asset-heavy and repeat-driven, this sub-broker built recurring deal flow and scaled earnings beyond six figures within a year.

Why Mehmi’s Sub-Broker Program Pays More

Not all sub-broker programs are equal. Mehmi Financial Group stands out because:

• In-house financing available → Higher payouts vs. third-party-only networks.
• Cross-industry reach → From trucks to medical equipment to packaging automation, you can diversify deal flow.
• 30+ lending partners → Close deals other brokers can’t.
• Fast 24–48h approvals → More volume = more commissions.
• White-label option → Build your own brand while leveraging Mehmi’s backend.

The Next Step

If you’re looking to grow a new revenue stream or scale your brokerage business, Mehmi’s sub-broker program offers unmatched commission opportunities.

👉 Contact Us to apply today and learn about exact commission splits.

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