A US SME looking for $10M of growth capital in 2020 called their regional bank. In 2026, they're far more likely to call a direct lender — and it's not just a rate story.
What SMEs want that banks don't provide
- Speed to term sheet. A bank's credit approval cycle runs 8–14 weeks. A direct lender who understands the sector can deliver a term sheet in two.
- Structural flexibility. Unitranche, delayed-draw, PIK, springing covenants — banks struggle to originate these. Direct lenders price them routinely.
- Relationship-driven underwriting. A bank underwrites to a grid. A good direct lender underwrites to the business.
- Add-on capacity. Growth capital borrowers often need follow-on funding within 18 months. Direct lenders can commit to incremental facilities; banks often can't.
Why this matters for origination
If you're a direct lender, the demand side is stronger than ever. But reaching SME borrowers at the right moment — before they engage a broker who commoditizes the process — is the bottleneck. That's the exact gap DealScale closes.
Our origination engine monitors early-stage borrower activity across thousands of US SMEs. When a borrower enters a financing window that matches your mandate, you get a warm, exclusive introduction. No broker. No auction. No race to the bottom on pricing.
See what the SME financing pipeline looks like for your fund.