What a loan intermediary does
An intermediary collects your application and documents, then submits them to funders it works with and relays the offers back to you.
The intermediary does not lend. Its value is knowing which funders suit which files and getting your paperwork in front of them. Some specialize in SBA loans, others in equipment or short-term products. A good one explains offers clearly and tells you when a request is unrealistic.
How intermediaries get paid
Most are paid a commission by the funder, the borrower or both. The fee may be built into the rate or charged up front, so ask.
Common structures include a percentage of the amount funded, a flat fee and a built-in markup in the rate or factor. Fees paid by the funder may still raise your cost. Ask for the total compensation in writing and request that your offer show the all-in price. Read how to total the cost of an offer.
When an intermediary can help
An intermediary helps when your file is unusual, you lack time or you do not know which funders fit your industry, credit or product need.
Examples include a business with seasonal revenue, a niche industry or a mix of strengths and weaknesses in credit. An intermediary can also help you organize the documents funders ask for. For simple needs with good credit, going straight to a bank or applying through a marketplace may be enough.
Red flags to watch for
Be careful with anyone who charges large fees before delivering offers, promises approval, pressures you to sign fast or will not disclose compensation.
- Up-front fees with no written scope
- Promises of approval or specific rates before review
- Pressure to sign the same day
- Vague answers about who the funders are
- Requests for unrelated personal data
If anything feels off, pause. A legitimate professional will give you time to compare. Also read things to know about using a lending marketplace.
Questions to ask before you engage
Ask how they are paid, which funders they use, what they need from you and whether they will share all offers they receive.
- How are you compensated, and how much?
- Do you charge anything if I do not take an offer?
- Will you share every offer, including ones you earn less on?
- Do you run a hard credit check, and when?
- What happens to my documents if I decline?
Intermediaries versus applying directly
You can apply to funders yourself, use an intermediary, or apply through a marketplace that matches you. Each trades time against control.
Applying directly gives you control but takes more effort, and each application may trigger a hard credit pull. An intermediary saves time but adds a fee. A marketplace-style application, like ROI Funder's, lets you submit once with a soft pull and see offers from funders that fit. Whichever route you choose, ask to see the total repayment in dollars, and never pay a large fee before you have a written offer in hand.
How ROI Funder works
ROI Funder matches each application to the funders in its network that fit, and shows true cost, payback and monthly-equivalent payments before you sign.
You apply once online in a few minutes with a soft credit pull and no obligation. A complete file, the application plus three months of business bank statements, can see same-day funding on approved files. ROI Funder considers 500+ FICO, 6+ months in business and $20,000+ monthly revenue. Learn how it works or apply now.
Frequently asked questions
Do loan intermediaries charge fees?
Many do, either as a commission from the funder, a fee from you or both. Ask for total compensation in writing.
Is an intermediary better than going to a bank?
It depends. Banks often price lower but approve fewer files, while an intermediary can reach funders suited to harder cases.
Will an intermediary hurt my credit score?
Only if they trigger hard inquiries. Ask when and how many credit checks will be run.
What should I bring to an intermediary?
Three months of bank statements, an ID, basic business details and recent tax returns if asked.