Understanding Contractor Financing With Direct-to-Merchant Lending (D2M)
As a contractor, you may need access to lump sums of money in order to cover costly expenses – such as new equipment or capital investments. Unfortunately, traditional means of financing can often be difficult and complicated to access – this is where direct-to-merchant lending (D2M) comes in.
What is Direct-to-Merchant Lending (D2M)?
Direct-to-merchant lending has recently gained attention as an alternative source of business funding for contractors. This type of lending allows contractors to obtain access to up to hundreds of thousands of dollars quickly and with less hassle than traditional point-of-sale financing sources like banks or private lenders.
So what is D2M?
In short, it’s a way for those in the contracting industry to borrow money from home services companies – typically involving the installation or repair of products – without having to go through the lengthy application process required by banks and other lenders. With D2M, contractors can receive funds quickly and without having to provide collateral, cash advance, or go through stringent credit checks. The biggest advantage here is that contractors are able to fund their projects instantly, allowing them to complete jobs on time.
In addition, many home services companies offer competitive interest rates and repayment plans when it comes to D2M loans. This competitive pricing makes it easier for contractors – especially small businesses – to afford expensive projects without straining their budgets too much.
Where Does D2M Fit Into the Contracting Industry?
It’s important for contractors and business owners alike to understand how D2M fits into the larger picture when it comes to financing options within the industry. When compared with other options – such as bank loans or private lenders – there are definite advantages that come with obtaining a loan through a home services company: namely speed and convenience. Traditional forms of lending can take weeks, if not months, to accept credit, check merchant cash advances, etc., before approval and funds are finally released, but with D2M, the process takes only days while still providing all the same benefits that one would expect from a more established lender.
Additionally, most home services companies have experience working with customers within their specific industry – giving them an edge over more general lenders who may not be familiar with the unique needs of a contractor’s job site or project requirements. And, because these types of loans have been designed specifically for those in this field – often covering costs associated with repairs or installations – they often include more favorable terms than what might be obtained from traditional sources like banks or private lenders.
Exploring The Benefits of A D2M Loan
Advantages of Direct-to-Merchant Lending (D2M):
Network of 300+ Lenders
With one application, you’re applying to over 300 lenders simultaneously, and these lenders compete on interest rates to get your project funded. Tap into HSF’s network of more than 300 lenders and benefit from competitive interest rates.
Quick access to funds
D2M loans provide contractors with fast access to large sums of money for their projects and expenses.
Easier application process
Unlike traditional lenders, D2M loan applications don’t require extensive paperwork or collateral.
Competitive interest rates & repayment plans
Many home services companies offer competitive interest rates, unlike consumer financing and repayment plans that make it easier for small businesses to afford expensive projects without straining merchant financing cost too much.
Industry experience advantage
Home services companies have experience working with customers within the contracting industry, giving them an edge over more general lenders who may not be familiar with the unique needs of a contractor’s job site or project requirements.
More favorable terms than traditional financing sources:
Because these types of loans are designed specifically for those in this field – often covering costs associated with repairs or installations – they often include more favorable terms than what might be obtained from traditional sources like banks or private lenders.
As you can see, merchant financing can provide contractors with an easier and faster way to access funding for their projects – without sacrificing the quality of service or repayment terms that traditional lenders offer. For those in the contracting industry, offering this option to customers may be the best decision they make to ensure the timely completion of jobs and increased profitability.
What are the platform requirements?
On average, the lenders are looking for businesses that have been operating for around one year or more and have generated a minimum of $1 million in Revenue with stable cash flow.
Do I need Workers Comp Insurance to complete my Merchant Lender Application?
Yes! Unless the contractor is located in Texas. The only State that can waive the Worker Comp requirement is Texas.
Applying for Merchant Lending
You can read about the process of applying for merchant lending in our blog “How to apply for merchant lending.”
In summary, Direct-to-Merchant (D2M) loans are a great option for contractors and business owners who need quick access to funds for their projects or expenses. These loans provide competitive interest rates and repayment plans that make it easier for small businesses to afford expensive projects without straining their budget too much.