I worked at those offices. Here is what they don't tell you
Lenders and card issuers pay us to match you, the same economics as a broker. What is different is how we behave, and what we refuse to do.
For years I sat in MCA brokerage offices watching reps sell merchants advances they couldn't afford on terms they didn't understand. The pitch was always the same: “We work with all the lenders, we'll find you the best deal.”
It wasn't true. They worked with whichever lender paid the highest commission that month, then sold your number to a dozen other shops, which is why the calls never stopped. The same information gap runs through business cards and SBA loans too. I built this platform to be the opposite of those rooms: private, and honest about the real cost.
The broker playbook, line by line
“The merchants I watched get stacked weren't unsophisticated. They were under-informed. Information asymmetry is the entire business model of the broker industry. We're trying to close that gap.”
Here is the part most broker pages leave out. New Matrix Capital is paid by lenders and card issuers when a match we made is approved. That payment is our only revenue from you, and you never pay us anything. Our platform standard is 8 percent of the funded amount. On MCA relief our standard referral is 12 percent and can run from 5 percent to 15 percent depending on the terms of the deal. Business card issuers pay a flat bounty per approved account, typically $50 to $200, not a percentage; SBA lenders and bank and alternative lenders each pay their own referral fee. Whatever applies to a specific deal is shown to you in chat before you ever submit an application.
Introducing a business owner to a lender or issuer for compensation can meet the legal definition of commercial-finance or loan brokering in some states, and can trigger a licensing, registration, or disclosure requirement. We do not claim the word “broker” can never describe what we do. We claim that we refuse to behave the way the broker industry behaves. Where a state applies broker licensing or disclosure to matching activity, we follow that state's requirement, and where the treatment is uncertain we have licensed counsel review it before we rely on the platform commercially there. The states we watch most closely:
- California. California Financing Law (CFL).
- New York. 23 NYCRR 600 (Commercial Financing Disclosure Law).
- Washington. Consumer Loan Act and commercial finance disclosure rules.
- Vermont. Vermont Loan Solicitation Law.
- Connecticut. Public Act 23-201 (commercial financing disclosure).
- Utah. Commercial Financing Registration and Disclosure Act.
- Virginia. Commercial Finance Disclosure Act.
- Florida. Florida Loan Brokers Act (Chapter 687).
New Matrix Capital is not a lender and does not issue credit. We do not provide legal, tax, or investment advice. For the full policy, see the Terms of Service and the state-law notes at the bottom of our legal pages.
In short: we are not pretending to be something other than a paid intermediary. We are telling you exactly how we get paid, in advance, and aligning that pay with whether your match actually helps.
The proof is in the paycheck
The reason we can behave the opposite of a broker is the way we get paid. See the full commercial model.