Comparing multiple loan offers is key to finding the best deal for your business — but applying to several lenders individually can be tedious and time-consuming. A business lending marketplace streamlines the process by allowing you to submit a single application and compare multiple small-business loan options in one place.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
How does a business lending marketplace work?
A business lending marketplace is an online platform that lets you compare loan offers from multiple lenders through one application. Although the borrower experience can vary from platform to platform, here’s how it generally works:
You submit an application.
You complete a simple application by answering basic questions about your business and the type of funding you need. At Fundera by SS, for example, you’ll answer:
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When you started your business.
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Your average monthly revenue.
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How you’ll use your loan.
When you submit your application, the marketplace will likely perform a soft pull on your credit (which doesn’t impact your score) to determine which loan options you prequalify for.
You receive loan matches.
Your matches will be limited based on the partners the marketplace works with. If, for example, the marketplace doesn’t work with any invoice factoring companies, you won’t see invoice factoring as an option.
You compare the offers you receive.
You’ll be able to see the loans that you prequalify for and review potential loan amounts, repayment terms and interest rates. Depending on the marketplace platform, you may have access to a dedicated representative who will walk you through the options and help you decide what’s best for your business.
You choose the right product for your needs.
If you find a product that’s right for your business, you can move forward with that offer. At this point, you’ll likely have to provide additional information to submit a formal application with your chosen lender. As part of this process, the lender may perform a hard inquiry on your credit — but you’ll be notified before this happens.
Keep in mind that you don’t have to move forward with a product if you don’t find one that’s right for you. You’re always free to explore other options, whether through another marketplace or a direct lender.
You receive and sign your loan agreement.
Provided that your supporting documentation is consistent with your original application, you should receive final approval from the lender quickly. Once you’re approved, you’ll receive a business loan agreement to review and sign. The loan agreement will outline your terms and conditions, including the loan amount, repayment terms, interest rates and any additional fees.
If you have any questions about the agreement, you can ask your dedicated representative (if you have one) or your lender directly.
Your funds are disbursed and you begin repayment.
After you’ve signed your loan agreement, the lender will disburse your funds to your business bank account. This process may take anywhere from a few hours to a few business days depending on the lender and your bank.
Then, you’ll repay your lender based on the agreed upon schedule. It’s important to note that the funds will come from your small-business lender and you’ll repay them directly. Business lending marketplaces don’t provide funds themselves or handle repayments.
Business lending marketplaces vs. direct lenders
Business lending marketplaces serve as a matchmaker between borrowers and lenders, whereas individual lenders work directly with borrowers themselves. Here’s a summary of their differences:
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Business lending marketplace |
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Allows borrowers to prequalify for multiple loan offers at once. |
Provides a single offer based on its available loan products. |
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Can compare several options using one platform. |
Requires multiple applications to compare offers. |
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Focuses on a fast and simple application process. |
Application and underwriting process specific to the lender; may be slow and time-consuming if a traditional lender (e.g. bank or credit union). |
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Doesn’t provide funding directly or take payments from borrowers. |
Issues funding to borrowers and receives repayments. |
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Makes money from fees and/or commissions when borrowers take out a loan from its lending partners. |
Makes money through interest and fees charged on loans they provide. |
Pros and cons of using a business lending marketplace
Receive multiple loan offers through a single application.
Information from several lenders is available in one place — making it easier to compare options.
May have access to a dedicated lending representative who can offer personalized support.
Funding is usually available quickly, faster than traditional lenders.
New businesses and/or borrowers with bad credit may be able to get a loan more easily than applying with a traditional lender.
Only lending partners of the marketplace may be included in options; banks often do not participate.
Sharing sensitive information could lead to follow-up calls or third-party data sharing, depending on the platform.
Interest rates may be higher than traditional lenders or going through a lender directly.
Varying levels of customer service, depending on the platform.
Some borrowers may not qualify for a loan offer.
Who should use a business lending marketplace
New businesses
If you’re a startup that’s never applied for a loan before (or even if you have), using a business lending marketplace can make the process more approachable. You may be able to work with a dedicated advisor, who can walk you through each step and help point your business in the right direction. And because marketplaces often partner with online lenders, it may be easier for new businesses to qualify for different options — especially in comparison with applying directly to a bank.
Borrowers with bad credit
Similar to new businesses, borrowers with lower credit scores may be able to access more financing options by working with a business lending marketplace. Online lenders that partner with these platforms may be able to accept credit scores as low as 500. Keep in mind that although marketplaces may be able to present you with multiple options, these offers may have high interest rates and short repayment periods — especially if you have a lower credit score.
Business owners who want to save time
If you want to save time, using a business lending marketplace is a great way to streamline your funding process. Instead of applying to multiple lenders directly — and having to wait and compare those offers — you can submit one simple application and see multiple loan options in one place. Plus, many lending marketplaces can help you get financing quickly, sometimes in as little as one business day.
Although these marketplaces can be time savers, they may not always be the best option for highly qualified borrowers. Many traditional lenders don’t work with marketplace platforms — so if you can wait for funds, you’ll likely get a better deal by going directly to a bank.
How to choose a business lending marketplace
If you’re considering using a business lending marketplace, it’s important to vet the platform to make sure it’s the right fit for your needs — just like you would with a direct lender. Ask these questions to help you make an informed decision:
Which lenders are in the marketplace? Are they — and the marketplace — reputable?
The benefit of using a business lending marketplace is getting access to multiple lenders in one place. As such, you’ll want to have an idea of which lenders a marketplace works with. You’ll likely see online lenders, as well as smaller banks or community institutions.
Keep an eye out for names you recognize — like Bluevine or OnDeck. You can also do a Google search and read reviews to help you determine whether the lenders in the marketplace are reputable. It’s also helpful to look up the marketplace itself, and verify that it’s a trustworthy company.
What types of loans are available? Can I qualify?
A good marketplace will have a variety of loan products to help address the needs of different businesses. You can expect to see business term loans and lines of credit — and might find additional products, such as SBA loans, equipment financing, invoice factoring, merchant cash advances or business credit cards.
If a business lending marketplace charges you fees, they should be clear and upfront about them when you start the process. Preferably, the platform will not charge any fees for its services — and is instead paid by the lender when loans are funded. (This is how Fundera by SS works.)
Will my credit be impacted?
When you submit an application with a business lending marketplace, they’ll likely perform a soft credit pull, which won’t impact your credit score. If you move forward with an offer, the lender will likely do a hard pull (which does impact your credit) — but you shouldn’t see this type of inquiry from an initial marketplace application.
Some business lending marketplaces connect you with a dedicated representative, whereas others may let you explore the options on your own. If you want to be able to work with an expert, you should look for platforms that provide this service upfront.
When you apply with a business lending marketplace, you’re providing sensitive personal and financial information. It’s important to understand the marketplace’s privacy policy and how they protect your data.
Fundera by SS, for example, encrypts sensitive data and never shares personal information with unaffiliated third parties for their own advertising or marketing purposes. We only share your information so that you can pursue options that you’re interested in with our lending partners.
How fast can I get funded?
You’ll want to understand what funding timelines a marketplace can offer — especially if you’re looking for fast funding. Timelines will likely vary based on the type of loan and lender you choose to work with, but you may be able to get a loan within a few business days.
We’ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.