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What is a Direct Funder?

Simply put, a Direct Funder is the company actually providing the working capital when applying for a Merchant Cash Advance. When you’re dealing with a Direct Funder, you are speaking to the company making the funding offer, and eliminating the middlemen. These middlemen can be referred to as brokers, ISO (Independent Sales Organizations), and referral partners. But they all essentially operate in the same way; they reach out to your business, shop your request out to various funding companies, and collect a commission while your funds come from a different company.


Why work with a Direct Funder? The aforementioned middlemen may not necessarily be providing the best rates possible in order to earn a higher commission off your application (see article “Fees & Costs”). Through a process called “upselling”, they are able to increase your cost of funds in order to earn more for themselves, without having to disclose this to you. Working directly with a reputable funder provides more transparency throughout the application process, and the opportunity to build a relationship with a trusted capital source. Establishing a payment history and relationship with a Direct Funder will also benefit you in the long run, should you require additional working capital. A funding company is more likely to offer lower rates, longer terms, and higher funding amounts to business owners they’ve previously funded.


When you take a merchant cash advance from Elevate Funding, you will know exactly how much you’re paying back and exactly what kind of fees are being assessed. These are all explained in plain, easy to understand terms at funding, so our customers always know the exact cost of their MCA. After you receive your funds, our in-house customer service team is happy to assist should you need any further assistance or additional working capital.

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