Going direct vs Using an arranger

Going direct to a lender vs using a funding broker

Approaching a lender directly is free and, for a simple facility with your own bank, often perfectly sensible. Where an arranger earns its fee is in access, structuring and competitive tension — particularly on complex, cross-border or time-sensitive requests where the right provider is not one you would have found alone.

Side by side

CriterionGoing directUsing an arranger
CostNo arrangement fee to a third partySuccess-based fee, payable only on completion
Lender accessThe providers you already knowA wide panel including funds that do not market publicly
Competitive tensionSequential applicationsParallel approaches, terms compared side by side
StructuringYou present the caseThe case is structured and evidenced before submission
Time cost to youHigh — repeated packs and callsOne pack, one process
Credit footprintMultiple searches if you shop aroundTargeted approaches to lenders who actually fit

What direct works well for

Small, standard facilities with an incumbent bank — an overdraft renewal, a modest asset purchase, or a top-up to an existing loan. You know the contact, they know your accounts, and there is nothing to arbitrage.

Where an arranger changes the outcome

Declines are usually about fit rather than viability. A request that fails at three lenders in a row often succeeds first time at the fourth because that lender's credit policy was built for it. Knowing which is which is the value.

Structuring matters too. Splitting a requirement across receivables, asset and term tranches, or timing an approach around a refinance window, routinely reduces total cost by more than any fee involved.

Questions to ask any arranger

Are there upfront fees? Who pays you, and how much? How many lenders will you approach and why those? Will I see the term sheets myself? Are you disclosing your commission?

Global Funding Gateway charges no upfront fees, discloses fee arrangements in writing, and all charges fall due only once funding is in place.

The short answer

Go direct for small, simple facilities with a lender who already knows you. Use an arranger where the request is large, structured, cross-border, urgent, or has already been declined once.

Questions

Do lenders offer worse terms through an intermediary?

No. Introduced business is a core origination channel; pricing follows the credit, and competing approaches usually improve rather than worsen terms.

What happens if funding is not raised?

Nothing is payable. Our fees are success-based and fall due only once funding is in place.

Not sure which route fits? Describe the requirement once and we will structure it and approach the providers whose criteria match. No upfront fees — charges are due only once funding is in place.

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