How DF Get Funding

[Value]

Hello, Hello,

I understand now that most “Direct Funders” get the loan from a business line of credit from a bank or PE firm.

So I’m closing over a million a year in loans. It makes more sense to just fund the deals my self. If all my boss is doing is just originating the loan. With bank funds.

What banks and licenses do I need to originate the loan with bank funds, under my own Corperate entity?

Thank’s,

Value

[fcfinancial]

They are also assuming the risk of "Defaults" -

[Olderguy]

My former boss was a direct lender...he had hedge money funds at $10M each. HIs cost was 7.5% and they reviewed large deals. You need super back up for a license - bonding, background check, etc. You need to start cultivating banks and get directed to other sources when you get set up. They can tell you what you will need. It's more than just revenue you are generating.

[jahleel]

A friend recently told me about a mix up she had with a split payment on Klarna when she bought a pair of shoes online. She realized the charge didn’t line up with what she expected and wanted answers fast. She searched online for how to contact klarna so she could reach someone who could explain what happened. After a short chat with support, everything was sorted out and the refund was processed smoothly.

[stevemarkovick]

It seems like many people underestimate how much infrastructure goes into becoming a true direct funder. From what I’ve seen, access to capital is just one piece — the bigger challenge is proving you can manage underwriting, compliance, portfolio risk, and licensing. Banks and PE groups won’t extend credit lines unless you can demonstrate real operational discipline.