Sustainability business loans: What fees could brokers or lenders charge for green finance? (Accountants)

Summary: Typical fees for green finance include lender arrangement/origination fees (commonly 0.5%–3% of the loan), broker fees or commission (fixed or percentage), valuation and legal fees, green verification/certification costs (£500–£5,000+), monitoring/reporting charges and possible early repayment fees. Reputable partners should provide indicative costs early and a full fee schedule before you sign. Complete our Free Eligibility Check to get transparent, no‑obligation quotes from brokers and lenders matched to your requirements: Get Quote Now (Two‑minute form — no obligation).

We’re an introducer — not a lender or financial adviser. We’ll match you to suitable brokers and lenders; this article is for information only. The enquiry form is not an application — it simply helps us find the best finance partners for your sustainability project.

Quick summary: key fees to expect and whether they should be disclosed up front

Key fees you’re likely to encounter for sustainability or “green” finance:

• Arrangement / origination fees (lenders or sometimes brokers): often a percentage of the loan.
• Broker fees / commission: fixed, percentage or success-based.
• Valuation, survey and legal fees: one-off third‑party costs.
• Green verification / certification: technical reports, MCS/EPC costs or third‑party auditors.
• Ongoing monitoring and reporting charges: annual or periodic fees.
• Early repayment / exit fees and ancillary charges (registering charges, insurance).

Yes — responsible brokers and lenders should disclose indicative fees early in the process and provide a full written fee schedule with the formal offer. Timing may vary, so ask for written confirmation before you accept any offer.

Why accountants need dedicated green finance and how fees can differ

Accountants arranging sustainability upgrades for practice premises (EV chargers, solar PV, heat pumps, low‑carbon fit-outs) must understand cost drivers. Project size, type of finance (asset finance, secured loan, hire purchase), security offered and the borrower’s credit profile all affect fees. For example, asset finance for EV chargers may carry lower arrangement fees but tighter covenants; a secured commercial mortgage to fund a rooftop solar array is likely to involve higher legal and valuation costs.

For accountants advising clients or funding firm-owned premises, fee transparency matters because it affects net return on investment, cashflow and client communications. Knowing which fees are one‑off, recurring or capitalised will influence whether a project is viable.

Who charges fees? Brokers vs lenders: how they differ

Fees can come from multiple parties. Below is a simple split of responsibilities and typical practices.

Lenders

• Arrangement / origination fees — charged to cover underwriting and administration.
• Legal, valuation and survey fees — often charged to the borrower or required to be paid at certain stages.
• Monitoring / reporting charges — applied where ongoing compliance or green reporting is required.
• Interest margin and early repayment charges — core to the cost of credit.

Brokers

• Broker fees — these can be an upfront advisory fee, a completion (success) fee, or commission paid by the lender.
• Commission structures — some brokers receive commission from a lender; others charge the borrower directly. Either way, disclosure is expected.
• Value-add advisory fees — specialised sustainability advice may attract fees for technical due diligence.

While we are an introducer and do not provide regulated advice or lending, the brokers and lenders we connect you with typically follow industry expectations on disclosure. Ask for written explanations of any third-party fees they propose.

Typical green finance fees — what they are and example ranges

Fee amounts vary by lender, loan size and project complexity. The table below gives indicative ranges — label these as illustrative rather than guaranteed.

Fee type	Who charges it	Typical range (indicative)	When charged	Notes
Arrangement / origination fee	Lender (sometimes broker)	0.5% – 3% of loan	At drawdown / deducted from proceeds	Smaller loans trend higher %; negotiable
Broker fee / success fee	Broker	£0 (some brokers free) to £1,000+ or 0.5% – 2%	On completion	Must be disclosed — ask who pays whom
Valuation / survey	Lender / third party	£200 – £2,000+	Pre-offer or before completion	Higher for specialist technical surveys
Legal / documentation fee	Lender or solicitor	£250 – £2,000+	Before completion	Depends on security complexity
Green verification / certification	Lender / third party	£500 – £5,000+	Pre or post-offer as required	May include EPC, MCS, technical reports
Monitoring / reporting	Lender	£100 – £500 pa or included	Ongoing	Applies where ongoing green metrics are tracked
Early repayment / exit fee	Lender	Fixed fee or % of outstanding	On payoff	Check breakage calculation for fixed‑rate loans
Security registration / filing	Borrower / lender	£20 – £200	Completion	Companies House or land registry fees

Ranges depend on project size and whether fees are capitalised. For loans from around £10,000 upward, percentage fees have more impact on smaller loans; always request examples for your loan amount.

Will these fees be disclosed before I proceed? What to expect and your rights

Transparency timing typically follows this path:

• Initial enquiry: Expect indicative costs and a ballpark repayment example — not legally binding, but useful for comparison.
• Pre-offer / formal offer: Lenders should provide a full schedule of fees, interest terms and any early repayment charges with the formal offer documentation.
• Before signing: You should receive a clear statement of all fees, whether they’re deducted from proceeds, capitalised or paid separately — get this in writing.

Make this a firm requirement during negotiation: ask for a single-page fee schedule and a sample total cost of credit (including any fees capitalised into the loan). If a broker or lender is reluctant to provide a written breakdown, treat that as a red flag.

How UK Business Loans helps accountants get transparent quotes

We match accountants and firms with lenders and brokers experienced in financing sustainability upgrades. Complete our short enquiry and we will:

• Compare multiple providers who work on green projects.
• Request transparent, indicative fee schedules on your behalf.
• Pass on multiple quotes so you can compare total cost (fees + interest).

Get Started — Free Eligibility Check (Two‑minute form — no obligation).

Questions to ask brokers and lenders (checklist for accountants)

Quick checklist to save time — get answers in writing and retain the emails:

• What exact fees are payable at drawdown, during the loan and on exit?
• Is the broker paid by you, the lender, or both? Please confirm the amounts in writing.
• Will you provide a full repayment schedule and total cost of credit example?
• Are there any third‑party verification or certification fees?
• Are fees deducted from the loan or paid separately?
• What are early repayment terms and breakage calculations for fixed rates?
• Can fees be capitalised into the loan and what is the impact on interest?
• Who will handle ongoing sustainability reporting and at what cost?
• Which legal entity issues the contract and who will be the counterparty?

How to reduce or negotiate fees (practical tips)

• Obtain 3+ offers — competition often reduces arrangement fees or broker charges.
• Negotiate a fee waiver in exchange for a slightly higher margin or longer term.
• Ask brokers to disclose commission and, if possible, reduce borrower‑facing fees if lender commission covers costs.
• Bundle deals — larger or repeat borrowing can secure lower fees.
• Consider paying certain one‑off fees directly to third parties if that reduces overall cost.

Remember: a lower fee sometimes equals a higher interest rate or stricter covenants. Consider total cost, not just headline fees.

Short example case study — Accountancy firm funds EV chargers

Scenario: A mid‑sized accountancy practice sought £35,000 to install EV chargers at firm‑owned premises. UK Business Loans matched the firm to two brokers specialising in sustainability loans. One lender quoted a 1.5% arrangement fee + £350 valuation; another offered no arrangement fee but a 0.8% higher margin.

Outcome: The firm chose the no‑arrangement‑fee option after modelling total cost over a five‑year term; the broker disclosed its £750 success fee in writing and the lender confirmed no ongoing monitoring charges. Lesson: always model total cost and get fee disclosures in writing before committing.

Next steps & CTA

Ready to compare transparent quotes for your sustainability project? Complete our short enquiry and we’ll match you with lenders and brokers who understand green upgrades for professional practices. The enquiry is free, not an application, and we only share your details with matching partners.

Request your free no‑obligation quote — Free Eligibility Check (Two‑minute form — no obligation).

FAQs

Will the broker tell me how much commission they receive?

Yes — reputable brokers disclose commission arrangements. Ask for written confirmation of any commission or third‑party payments.

Are green certification costs always required?

No — requirements vary by lender and project. Some lenders require third‑party certification (e.g., EPC, MCS), others accept contractor reports or technical assessments.

Can fees be added to the loan?

Sometimes. Lenders may deduct fees from proceeds or allow capitalisation. Remember that capitalising fees increases the interest you pay overall.

Will disclosing fees hurt my chance of approval?

No — fee disclosure is part of normal due diligence and should not affect credit decisions if you meet the lender’s criteria.

Does using UK Business Loans cost me?

No — our service is free for businesses. If a broker charges a borrower fee, this will be disclosed to you before you proceed.

Who regulates brokers and lenders?

Many lenders and brokers operate under UK financial regulation. Check the firm’s details on the FCA register or ask the broker/lender for their regulatory information.

Useful links / Related resources

• UK Business Loans — Home
• sustainability business loans (detailed sector page)
• BEIS — energy and sustainability guidance
• FCA — consumer information on financial promotions and firms

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Author: UK Business Loans Editorial • Date: 29 Oct 2025. Our service introduces businesses to lenders and brokers — we do not lend and we do not provide regulated financial advice. Offers and terms are provided by lenders/brokers and are subject to their credit checks and contractual terms. Completing an enquiry form is not a loan application.

1. What typical fees should I expect for a sustainability or green business loan?
Expect arrangement/origination fees of around 0.5%–3% of the loan, broker fees (fixed or 0.5%–2%), valuation/legal fees (£200–£2,000+), green verification costs (£500–£5,000+), plus possible monitoring and early‑repayment charges.

2. Who charges fees on green finance — the lender or the broker?
Lenders commonly charge arrangement, legal, valuation and monitoring fees while brokers may charge a fixed or success fee or receive commission from the lender, and both parties’ charges should be disclosed.

3. Will a broker tell me how much commission they receive for arranging a sustainability loan?
Reputable brokers should disclose commission and any borrower fees, and you should ask for written confirmation before proceeding.

4. Can lender or broker fees be added to or deducted from my green loan?
Yes — some lenders deduct fees from the proceeds or allow fees to be capitalised into the loan, which increases the total interest you pay.

5. Are green certification or verification costs always required for sustainability loans?
No — requirements vary by lender and project: some require third‑party certification (EPC, MCS, technical audits) while others accept contractor or technical reports.

6. How do I compare the true cost of different sustainability finance offers?
Request a full written fee schedule and a total cost of credit example (including any capitalised fees), and compare multiple quotes — UK Business Loans can match you to several providers for free.

7. Will submitting a UK Business Loans enquiry affect my business credit score?
No — completing our free eligibility check is not a loan application and won’t impact your credit score; lenders or brokers may run checks only if you proceed.

8. How quickly can I get transparent quotes for a green project through UK Business Loans?
Complete the two‑minute enquiry and you can often receive a response and indicative, transparent quotes from matched brokers or lenders within hours.

9. Are the brokers and lenders UK Business Loans connects me with regulated by the FCA?
We work with reputable brokers and lenders who operate under FCA guidelines, but you should always verify any firm on the FCA register.

10. What practical steps can accountants take to reduce or negotiate sustainability loan fees?
Obtain 3+ offers, ask brokers to disclose and reduce borrower‑facing fees if covered by commission, negotiate waivers or margin swaps, bundle borrowing, and consider paying certain third‑party costs directly to lower overall expense.