“You’re walking around blind without a cane, pal. A fool and his money are lucky enough to get together in the first place.”
— Gordon Gekko, Wall Street (1987)
When it comes to finding business funding, Lendio and Fundera offer a more professional experience than most brokers. They’ve built relationships with a variety of lenders, including banks and other cheaper forms of capital. And yes, they’ll probably charge you less in commissions than a traditional broker would.
But here’s the reality: they’re still driven by their own incentives. As loan marketplaces, Lendio and Fundera make money when deals close, and their structure encourages them to push loans that get them paid the most and fastest—not necessarily what’s best for your business.
Convenience, But at a Cost
Lendio and Fundera provide a convenient way to browse offers from multiple lenders. That’s the selling point, right? But while they may boast about their relationships with a wide variety of lenders, including cheaper options like banks, their incentives still matter.
Cheaper deals, such as bank loans, often take longer to close and offer less room for commissions. And when your income is tied to commissions, time is money. So while they may have access to more affordable capital, the loans that earn them the most and close the quickest are going to be the ones they push hardest.
It’s not that they don’t want to get you a good deal—it’s just that the system is designed for them to maximize their own revenue, not necessarily to get you the cheapest loan possible. The reality is that cheaper loans take more time and effort to close, which often makes them less appealing to brokers who want to get paid quickly.
Negotiating Directly Is Still Better
This is why negotiating directly with lenders is still the best move for your business. When you remove the middleman—whether it’s a broker or a marketplace—you’re in a stronger position to negotiate better terms. The lender doesn’t have to factor in a commission or fee, so you can get more honest and transparent loan terms.
While Lendio and Fundera make it easier to get multiple offers, your ability to negotiate the best deal is still limited by their need to close the loan quickly and get paid. And that’s where BrokerFreeCapital.ai comes in—we help you cut out the middleman and apply directly to a small, curated list of lenders. This way, you maintain control and secure the best deal for your business, without the hidden agendas.
The Commission Factor
Even though Lendio and Fundera might save you time by bringing you multiple options, they’re still earning commissions on those loans. Those commissions are often built into your loan terms—meaning you’re paying for them, whether you see it or not. So while they might present several offers, their focus is on closing deals that benefit them, not necessarily on finding the perfect loan for your business.
Take Control of Your Funding
Lendio and Fundera might offer convenience, but remember that convenience comes with a price. The quicker and easier deals may not always be the best ones for your business, and the cheaper options may not get the attention they deserve because of the way the system incentivizes brokers.
If you want to ensure you’re getting the best possible loan, it’s worth considering applying directly to lenders. BrokerFreeCapital.ai helps you identify the best options and cuts out the middleman, giving you more control over the process and ultimately saving you money.
Don’t Let Someone Else’s Incentives Drive Your Decisions
At the end of the day, marketplaces like Lendio and Fundera are in the business of closing deals. And while they might offer access to a wide range of lenders, the loans that make them the most money and close the quickest are often the ones they push. Don’t let their incentives shape your decisions—take control of your funding and make sure you’re getting the best deal for your business.