Quick answer: A direct lender funds your merchant cash advance (MCA) with its own money and makes the approval decision itself. A broker shops your application to other funders and earns a commission when you’re funded. Brookestone Funding is a direct lender. Whichever you choose, get a written offer showing the funded amount, total payback, payment amount and payment schedule before you sign, and walk away from anyone who asks for fees upfront.
Direct lender vs. broker: the difference
| Direct lender | Broker | |
|---|---|---|
| Who funds the deal | The lender, with its own capital | A third-party funder the broker places you with |
| Who decides approval | The lender, in-house | The funder; the broker passes along the answer |
| Who you deal with after funding | The same company | Usually the funder, not the broker |
| How they get paid | From the advance itself | A commission, often built into your cost |
Brokers aren’t bad. A good broker can compare several offers for you. But every extra party in the deal can add cost and slow down communication, so it’s worth knowing who you’re actually dealing with.
8 questions to ask any MCA company
- Are you a direct lender or a broker? If a broker, ask which funder will fund the deal.
- What is the total payback amount? This is what you’ll repay in total. It matters more than the payment size.
- What is the factor rate, and are there extra fees? Ask about origination, underwriting or wire fees and whether they come out of your funded amount.
- How often do payments come out, and how much? Daily, weekly, or a percentage of sales?
- How long will it take to repay? Get an estimate based on your current sales.
- What happens if sales slow down? Ask whether payments can be adjusted to match your actual revenue.
- Is there a discount for paying it off early? Get the answer in writing.
- How fast is funding after approval? Many direct lenders fund within 24 to 48 hours.
Red flags to avoid
- Upfront fees before funding. Legitimate funders take their fees from the advance, not from your pocket before you’re funded.
- “Guaranteed approval.” No real funder approves everyone without reviewing your bank statements.
- No written offer. If they won’t put the total payback, payment amount and schedule in writing, don’t move forward.
- Pressure to sign today. A real offer will still be there tomorrow.
- Pushing you to take on more advances when you’re already struggling to keep up with existing ones.
- No physical address or real reviews. Check the company’s address, phone number and reviews on sites like Trustpilot and Google.
How to compare two MCA offers
Line up both offers and compare three numbers: the amount you actually receive after fees, the total payback, and the estimated repayment time. The offer with the lowest daily payment isn’t always the cheapest; it may just take longer. Our guide to APR vs. interest rate vs. factor rate walks through the math.
Several states, including New York and California, now require commercial funders to give you a written disclosure of costs before you sign. Even where it isn’t required, you should ask for one.
Why work with a direct lender like Brookestone Funding
Brookestone Funding is a direct business financing lender based at 300 McGaw Dr in Edison, New Jersey, serving small businesses nationwide. Because we make our own decisions:
- You deal with one company from application through repayment.
- Merchant cash advances range from $10,000 to $2,000,000, based on your sales.
- Most approved businesses are funded within 24 to 48 hours.
- If an MCA isn’t the best fit, we also offer lines of credit, term loans, SBA loans and equipment financing.
You can read what our customers say on Trustpilot. Apply now or call (877) 665-4209.
Frequently asked questions
Is it better to get an MCA from a direct lender or a broker?
A direct lender funds the advance itself and makes its own approval decision, which usually means fewer parties, clearer communication and no broker commission built into your cost. A broker can be useful if you want several offers compared for you.
How do I know if an MCA company is legitimate?
Check for a real business address and phone number, independent reviews, and a written offer showing the total payback, payment amount and schedule. Avoid any company that asks for fees before you’re funded or guarantees approval.
Is Brookestone Funding a direct lender?
Yes. Brookestone Funding is a direct business financing lender based in Edison, New Jersey, serving small businesses nationwide.
Should I pay an upfront fee for a merchant cash advance?
No. Legitimate funders take their fees out of the advance itself. A request for payment before you’re funded is a common sign of a scam.
See what your business qualifies for
Brookestone Funding is a direct lender serving small businesses nationwide. Apply online in a few minutes — all credit scores considered, no collateral required for merchant cash advances.
- $10K – $2M in funding
- Funded in as little as 24–48 hours
- Decisions based on your revenue, not just your credit score
