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Merchant Finance

Bank or Direct Lender: Who To Work With For Business Loans

By February 21, 2019April 16th, 2019No Comments

Bank or Direct Lender


When it comes to securing financial assistance for your business, do you feel like the only option is to gather the last decade of records and tax returns before heading to a local bank? That might have been the only option in decades past, but it’s certainly not the case anymore! Now, there are plenty of options out there to help you secure the right business lenders based on your unique situation. Here are the big reasons why it may be better to skip the bank and work with a direct lender instead:


Better Loan Flexibility

Is your credit near-perfect? Lucky you! If it’s not, you aren’t out of luck. Direct lenders are a better option in large part because they offer vastly improved flexibility. You don’t need to worry about fitting into a specific and narrow set of qualifications to get a merchant loan. Working with a direct lender often means better flexibility on credit requirements, business history, and so on.


Faster Funding

This isn’t a cheesy infomercial, but do you need funding fast? Working with a bank can mean weeks or months of processing — and that’s assuming you fit their qualifications. Since direct lenders don’t have the same lending restrictions as banks, they can process merchant finance applications faster. They can help you get funding quickly and easily without schlepping out your business’s entire financial history. In fact, some direct lenders even work with the latest in FinTech, which means you can apply online and get the process started day or night, anywhere you have internet access.


Better Merchant Finance Rates

The same lending qualifications that make bank-proffered business loans so restrictive can also make them more costly — especially when your business is new or your credit score isn’t perfect. Working with a direct lender often means seeing savings you wouldn’t otherwise receive, things like better interest rate options and better financing terms. That savings is a direct corollary to a direct lender’s flexibility, so it’s important to look at options other than bank loans.


A Wider Variety of Options

Do you need a loan just to cover new equipment or with merchant financing cover a variety of uses? Bank loans can be restrictive in what they will and will not provide funds for. Conversely, working with a direct lender often opens you up to a wider array of options — all the better to set you up with the right merchant finance option for your business’s specific needs.


The Question of Collateral

Are you considering taking out a second mortgage just to provide the bank-required collateral? Stop! Set the bank loan application aside and talk to a direct lender. Their merchant finance flexibility means they can often help you get the necessary capital without collateral.

Are you ready to find a better way to finance your business’s needs? Start by connecting with Merchant ReFi online. Learn more about our merchant finance options and see how much more flexible we can be than your traditional bank loan. Fill out our merchant application online to get started today!

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