Understanding Different Funding Company Models: A Comprehensive Guide

There are two types of funding companies in the market right now.

The first type has one product. And they will recommend that product to every business that walks through the door, regardless of fit.

Revenue-based financing for a business that needs equipment. A term loan for a company with a seasonal cash flow gap. A line of credit for a one-time capital need.

The product is the answer before they even hear the question.

The second type starts with the question.
What does this business actually need? What's the use case? What's the cash flow structure? What can they realistically repay — and when?

Then they go to 30+ lending partners and find the offer that fits the answer.
One model earns by selling you a product.

The other earns by finding you the right one.

That distinction matters more than the rate on any individual offer.
Know which table you're sitting at before you sign.

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