Friday, June 12, 2026New York · LondonSOFR 5.32Prime 8.50
Capital Desk · OpenVol. VII · No. 26
Business Loan Broker vs Direct Lender.
Direct lenders sell one product underwritten by one balance sheet. Brokers shop your file to multiple lenders. Both have legitimate use cases — the wrong answer depends entirely on deal size and product fit.
| Dimension | Direct Lender | Summit |
|---|---|---|
| Pricing | Lender's posted rate | Competitive bid across 3–10 lenders |
| Product range | 1–2 products | All 9 SMB debt strategies |
| Underwriting | One box — fit or rejected | Matched to the lender most likely to approve and price aggressively |
| Speed | Fast on simple files | Same speed; broker manages parallel submissions |
| Fees to borrower | None directly (priced into rate) | None on broker side; lender pays a placement fee at funding |
| Best for | Small, simple, well-banked file | Anything non-vanilla — sub-prime credit, larger raises, structured, multiple offers |
Verdict
Direct lender if you fit their box and want one quote. Broker desk if your file is borderline, the deal is over $100k, or you want price discovery. A good broker costs you nothing — the lender pays the placement fee out of their margin.