Direct funder vs broker: what small business owners need to know

When you search for small business funding, almost every result is a broker — not a lender. A broker takes your application and shops it to multiple funders, collecting a commission on the deal that funds.

That commission gets baked into your cost. You pay more, your data gets shared more widely, and if something goes sideways post-funding, you're dealing with an intermediary.

A direct funder uses its own capital. There's no commission to layer on, no shopping your file around, and the person who underwrote your deal is the person you call.

How to tell: ask 'are you the funder or a broker?' A direct funder will say so plainly.