Advisors and partners who support small and medium-sized businesses (SMBs) are essential in driving growth. One of their main challenges is connecting entrepreneurs with the fast, reliable capital they need to reach their full potential.
However, relying on independent funders for financing may not always be the best solution. In fact, depending on them for financing can put intermediaries at a significant disadvantage.
That’s why aligning with the right funding partners is so important.
At Bitty, we firmly believe in the power of partnerships. By collaborating with the right partners, we can extend our reach and empower more entrepreneurs to accelerate their SMB growth journey.
In this article, we’ll share the drawbacks of working with independent funders, explore the advantages of partnering with a funding leader like Bitty, and guide you through the key factors to consider when choosing a funding partner.
The Challenges of Working With Independent Funders
Everyone wants SMBs to succeed, seeing as they are the backbone of the U.S. economy.
And for that, they need funding. The question is, how do you get it for them?
Partnering with independent funders is a way—albeit one that comes with major obstacles that compromise service quality, client satisfaction, and operational efficiency.
Limited Product Offerings
Independent funders typically work with a small pool of lenders or investors. This can be a drawback for partners, as it restricts their ability to offer a range of diverse or customized financing solutions to SMB clients.
If SMB owners require more tailored or flexible funding options, they may turn to competing providers who provide exactly what they need.
Technology Limitations
Independent funders often rely on outdated technology, limiting partners’ ability to scale their operations efficiently.
Even worse, partners may face delays in the funding process, leading to an incredibly frustrating experience for their clients.
In addition, legacy systems lack modern security safeguards. This is especially concerning in the financial services industry, where data breaches are more common and costly than most other sectors.
In other words, independent funders using such tech expose both partners and SMBs to ongoing cyber risks, threatening credibility and compliance.
Time-Consuming Processes
Because independent funders typically lack the tools to automate and track workflows and tasks, partners may find themselves manually taking on the added responsibility of managing applications, paperwork, and follow-ups.
This not only slows down partners’ operational efficiency and ability to serve clients quickly but also diverts their attention away from more strategic, business-driving activities.
Keeping Up With Industry Changes
Given their limited resources, independent funders often struggle to quickly adapt their offerings to new developments across the SMB funding landscape.
This can make their partners appear out of touch, prompting prospective clients to turn to more agile organizations who can offer more relevant funding options.
Then there is compliance. When independent funders don’t prioritize updating their products and services in line with financing regulations, their partners may end up paying the literal price in compliance fines, legal liabilities, and long-term reputational damage.
Poor Marketing and Lead Generation
Independent funders often lack the specialized resources or expertise needed to create and execute effective marketing strategies. In addition, their limited budgets may prevent them from investing in advanced tools and technologies that can optimize lead generation.
Ultimately, partners may find themselves receiving fewer high-quality leads and experiencing far less visibility than their counterparts, affecting their ability to secure new clients.
The Power of Partnership
Now that we’ve addressed the potential challenges of working with an independent funder, let’s explore how teaming up with an industry leader can help partners propel their businesses—and their clients’ SMBs—forward.
Product Portfolios
Partnering with an industry-leading funder opens the door to a broader range of financial products and solutions, enabling partners to respond to the diverse and custom needs of SMB owners.
By offering more tailored and personalized options, partners can better position themselves as a go-to resource for small businesses, ultimately strengthening their market position.
Advanced Technology
Industry leaders often provide partners with access to cutting-edge platforms that help streamline operations and boost efficiency.
With automation and tools to manage client data, process deals quickly, and track progress, partners are better equipped to serve more clients and close deals faster without compromising service quality.
Industry Shifts
By collaborating with an expert funding partner, organizations get access to valuable training and resources, helping them stay on top of industry trends and new laws.
As a result, these partners can more easily navigate regulatory changes, minimize risk, and ensure operations stay compliant and efficient.
Customer Trust
Aligning with an industry leader can help build credibility for partners, with SMBs perceiving the relationship as a promise of quick, smooth, and reliable funding.
This ultimately boosts partners’ brand reputation—helping them attract new clients and amplify their visibility and marketing effectiveness in a crowded landscape.
Key Considerations to Choose the Right Funding Partner
So, how might advisors who connect SMBs with working capital choose the right funding partner? Here are some critical considerations for ensuring a beneficial relationship.
Strong Reputation
Ideally, the right funding partner will have a history of reliability and transparency. Look for a firm that prioritizes:
- Clear communication with partners as well as SMB owners.
- Consistently high-quality solutions.
- Ensuring borrowers feel secure and informed throughout the funding process.
Checking customer reviews can also help validate the credibility and trustworthiness of your potential partner.
Multiple Funding Options and Flexibility
Especially when it comes to financing small businesses, flexibility is essential, so steer clear of prospective partners who only offer one-size-fits-all approaches.
Rather, opt for a funding partner who takes a specialist approach to assisting small business clients, and who offers multiple customizable solutions that can be adapted to the unique needs of individual SMB clients.
Quick and Responsive Financing
SMBs rely on timely access to capital for capitalizing on opportunities and navigating challenges. Therefore, your funding partner should emphasize speed of service.
Providing fast, dependable service to SMBs is key to building long-lasting relationships and maintaining a competitive advantage for your business.
Scalable, Secure Platform
Ensure your funding partner’s platform—which includes the technology and tools for managing various financial services—can grow with you. In other words, it should have the capacity to handle increased client volumes and deals as your own business expands, all while maintaining high-quality service.
Meanwhile, make sure the platform also has robust security measures for protecting client data. This will ensure you can mitigate risks and maintain efficient operations while adhering to industry regulations.
Expertise and Support
A strong partnership should go beyond just financial solutions. Your funding partner should also offer ongoing training, guidance and other partner resources to help your own funding operation stay ahead of the curve.
Having access to a trusted platform and knowledgeable experts will empower you to overcome any challenges that come your way—and sustain long-term business growth.
Why You Should Partner With Bitty
As an advisor who connects small business owners with financing opportunities, strategic partnerships are key to growing your business and serving your SMB clients.
At Bitty, we proudly specialize in fast, flexible revenue-based financing solutions to meet SMBs’ needs across multiple industries—from construction and trucking to hospitality, retail and beyond.
Committed to building trusted relationships with partners, we prioritize aligning with your goals, values, and client needs to drive long-term success and growth throughout every financial journey.
It all comes down to our BittyPro Framework™—a customer-centric process that provides your firm the tools and support SMB funding landscape. We offer:
- Fast approvals within as little as 24 hours.
- Flexible repayment options to align with your SMB clients’ revenue flows.
- Competitive commissions to help you grow revenues consistently.
- Valuable industry insights and educational content so you can keep ahead of trends, market your business effectively, and stay competitive.
But don’t just take our word for it—check out Bitty’s client reviews. Over the years, we are proud to have built such a strong reputation for fast, flexible, and reliable SMB funding solutions.
If your aim is to connect SMBs with the revenue-based financing they need, while you experience all the perks of partnering with an industry leader, Bitty is the right choice.
Let’s team up to help SMBs succeed and build a prosperous future together—one trusted relationship at a time!
