There is a misnomer in the Business Cash Advance industry about broker’s and lenders. Direct Lenders are the “bank” so to say. If contacted they are the actual lenders who are providing you with the majority of the funding for your business and set the rates. They will be able to provide you with one program at a set pricing which they provide to all their merchants.
As far as brokers, there are really two different types of broker’s. There are broker houses which have good relationships with multiple lenders who also put up a portion of their own money on deals, and there are 2nd tier broker’s who sell merchant cash advances by submitting deals to many different 1st tier broker houses.
In general merchants should avoid 2nd tier brokers as they simply submit your information to many different 1st tier broker’s who submit your information to multiple lenders. Due to the many inquiries into your credit, this lowers your credit rating and from an underwriting standpoint this could harm your chances of getting funding.
However, it may be a good idea to submit your deal to a 1st tier broker as they have special relations with multiple lenders, and may be able to get you better pricing then if you were to simply contact the direct lender yourself. Many times these brokers put up a portion of your funding with their own funds, so it is definitely in their best interest to get you funded. 1st tier brokers will usually charge you a fee for finding you the money and underwriting your file, but in the end it works out to your advantage as their pricing can be more competitive. For our list of the most reputable lenders in the industry click here!