Business financing reaches owners through two common models. In one, the company you apply to makes the decision and funds the loan. In the other, one application is shown to several lenders. Here is how each works and what to ask.
Check My OptionsHow financing is sourced
Three months of bank statements, a 5-minute application, and a soft credit pull to start. Funding in as little as 24 hours for qualified businesses.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
Updated October 16, 2026
A direct lender underwrites and funds the loan itself. The same company reviews your file, sets the terms, sends the money and usually collects the payments. A business loan marketplace is a platform that takes one application and presents it to a network of lenders, each of which decides on its own whether to make an offer. Marketplaces are typically paid by the lender that funds the deal, and some also charge the borrower.
Neither model is better in every case. The right fit depends on how clearly your business fits a lender's criteria, how much time you have, and how many offers you want to compare side by side.
You apply on the lender's own form. Its underwriters review your statements, credit and business details and make the call. If you are approved, the offer comes from the same company that will fund and service the loan.
You complete one application and the platform matches your profile to lenders whose criteria fit. Depending on the platform, you may see one offer or several, from banks, online lenders, revenue-based funders or SBA lenders.
Government programs use matching too. The SBA's free Lender Match tool shares a request with SBA-participating lenders, who reach out if they are interested. The lending decision stays with each lender.
| Factor | Direct lender | Marketplace |
|---|---|---|
| Who makes the credit decision | The lender's own underwriters | Each participating lender, separately |
| Who funds and collects | The same company | The lender whose offer you accept |
| Number of offers | One offer or a decline | Can be several |
| Where your information goes | Stays with one company | Shared with the lenders that review it |
| How the company is paid | Interest, factor or fees on the financing | Usually a fee from the funding lender, sometimes a borrower fee |
| Often a good fit for | A clear profile that fits one lender's criteria | Owners who want to compare, or whose profile is harder to place |
The answers matter more than the label. A company that answers all six clearly, in writing, is giving you what you need to compare it against anyone else.
Put every offer on the same footing: the amount you actually receive after fees, the total repayment, the payment amount and frequency, the term, and any prepayment terms. Compare the total repayment to the amount you receive, not only the rate, because a daily or weekly schedule changes how a cost feels in practice. For the thresholds that drive many of these decisions, see funding requirements and how much can I borrow.
Commercial financing contracts are not reviewed by a regulator before you sign them, so read every page. Our guide to merchant cash advance warning signs covers the contract terms worth a second look. Free help reading an offer is available from an Small Business Development Center (SBDC) advisor or a SCORE mentor.
To see what your business may qualify for here: Applying starts with a 5-minute application and about three months of business bank statements, with a soft credit pull to start. FICO 500+ is considered, and funding ranges from $25,000 to $5,000,000. No tax returns are required to apply. Every offer shows the full repayment amount before you accept. Use the six questions above to compare it with any other quote you receive.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
Neither model is cheaper by default. Cost depends on the product, your business profile and any fees. Compare the total repayment amount of each offer in writing.
It depends on the platform. Ask whether the first check is soft and whether each lender that reviews the application will run its own inquiry.
Many are paid by the lender that funds the deal, and some charge borrowers too. Ask directly and confirm whether any fee is included in the total repayment shown.
Lender Match is a free SBA tool that shares your request with SBA-participating lenders, who contact you if interested. Each lender makes its own decision and sets its own terms.
The financing agreement names the funding company. Read it before you sign, and ask if the name is not the company you applied with.
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding