Small businesses are the backbone of the U.S. economy, but gaining access to capital can be one of their biggest challenges. Traditional lenders often require extensive documentation, long approval times, and pristine credit histories—requirements many small business owners cannot meet. That’s where alternative financing firms offer more flexible solutions tailored to real-world business needs.
Channel Partners Capital (often shortened to “Channel”) aims to bridge that gap by providing working capital solutions through a network of equipment finance companies and other channel partners. Focusing on speed, service, and relationships, Channel offers funding opportunities for small businesses that might otherwise be denied traditional loans.
This review explores how Channel Partners Capital (Channel) works, including the financing options, pros and cons, and how to partner with them. Specifically, we’ll answer these questions and more:
Channel Partners Capital is a leading provider of small business financing, founded in 2009 and headquartered in Minnetonka, Minnesota. The company operates as a direct lender but only offers funding through third-party partners—primarily equipment finance companies. Over consecutive years, Channel has been recognized on Inc. Magazine’s list of fastest-growing private companies, reflecting both its strong growth and industry impact.
Channel specializes in working capital financing, typically in the form of short-term loans and merchant cash advances. These products are designed to help small businesses maintain operations, support expansion, and handle unexpected expenses. Channel Partners Capital, founded in 2009, has provided over $1 billion in loans to small businesses.
Channel Partners Capital operates through a partner-driven model. It primarily collaborates with equipment finance companies and other financial service providers to offer capital solutions to small businesses. Rather than marketing directly to business owners, Channel empowers its partners to deliver financing through a seamless, technology-enabled platform.
The company offers loans ranging from $10,000 to $250,000, with terms ranging from 6 to 24 months. Channel Partners Capital can make credit decisions within 2-4 hours after all necessary documents have been presented.
Channel offers two core funding solutions:
Channel’s working capital loans are designed to help small businesses manage day-to-day operations, cover unexpected expenses, or take advantage of growth opportunities. These loans offer:
Working capital solutions are ideal for businesses with consistent cash flow that need an immediate cash infusion to keep operations running smoothly.
This is Channel’s hybrid financing solution, which combines equipment financing with additional working capital. It’s designed for small businesses that are already financing equipment purchases but also need supplemental cash for related expenses, such as installation, staffing, or materials.
EFP allows partners to offer more comprehensive funding packages to their clients, increasing approval rates and transaction sizes without requiring multiple lenders.
Through these offerings, Channel enables equipment finance companies and other referral sources to expand their value proposition and meet more of their customers’ financial needs. Partners use Channel’s proprietary ChannelConnect platform to submit deals, track progress, and manage communications—helping ensure quick approvals and a smooth experience for both the partner and their clients.
Since Channel doesn’t work directly with end-users, qualifications can vary slightly depending on the partner company. However, standard requirements for small business borrowers generally include:
The company’s flexible underwriting model focuses on business performance, industry, and cash flow rather than only credit scores. That said, stronger credit can help secure better terms.
One of the most important distinctions about Channel is that small business owners cannot apply directly for funding. Instead, Channel operates as a business-to-business (B2B) lender, relying on a network of equipment finance companies and other referral sources.
These partners act as the first point of contact with the business and submit loan applications to Channel’s underwriting team. This model allows Channel to scale its services without building a large internal salesforce and creates a collaborative funding process.
Channel Partners Capital leverages technology and a proprietary credit scoring model to make quick and flexible financing decisions. Partners receive training, technology tools, and dedicated support to sell Channel’s financial products and communicate directly with customers. This structure also ensures better alignment between the business’s financing needs and the products offered.
Once a loan is approved, Channel Partners Capital can fund it the same day, electronically sending funds to the business’s bank account. ISOs and business loan brokers can contact Channel directly about their business loan affiliate program.
If you’re a small business owner, the only way to access funding through Channel is to work with one of their equipment finance or referral partners. These partners submit deals to Channel on your behalf. You cannot apply directly through the company’s website unless you sign up to become a partner.
To become a partner, an equipment finance company must complete an application with Channel, sign an agreement, and undergo an onboarding process that includes training and access to the ChannelConnect platform—a proprietary system for submitting deals, tracking status, and managing communications.
Once a loan or merchant cash advance is approved, funds are typically deposited into the business’s account within one to two business days. The repayment process begins immediately and is usually done through daily or weekly ACH debits.
Channel maintains a high-touch relationship with partners throughout the life of the deal, ensuring the customer receives timely service, answers to questions, and support. There are no hidden fees or early repayment penalties, and many businesses return for additional capital after successfully repaying their first advance. Channel makes managing your debt obligation simple.
One of Channel’s most significant advantages is its exclusive partner-based model, which leverages the expertise of equipment finance companies that already understand their clients’ needs. By working with existing partners, Channel can deliver more accurate funding recommendations and faster approvals.
The company also stands out for its commitment to speed and simplicity. The application process requires minimal documentation, and decisions are often made within hours. Its flexibility around credit and underwriting guidelines makes it a good choice for businesses that may not qualify for traditional loans.
Channel offers partners a highly supportive and technology-driven experience that includes training, real-time tracking, and strong margins. The platform allows partners to grow their portfolios while serving customers more thoroughly.
The most significant limitation is that Channel does not work directly with business owners—you must go through a partner. This can confuse entrepreneurs searching for a lender online and expecting a direct application option.
Channel’s loan products also tend to be short-term with frequent repayment schedules, which may not suit all business models. Daily or weekly payments can strain a company’s cash flow, especially during slow seasons or economic downturns.
Additionally, since Channel primarily offers merchant cash advances and short-term working capital, businesses looking for long-term or low-interest financing options may need to consider alternatives.
Pros:
Cons:
Yes, Channel Partners Capital is a legitimate company with over a decade of experience in alternative lending. It holds an A+ rating from the Better Business Bureau (BBB) and is a member of the Equipment Leasing and Finance Association (ELFA). It has also been featured on the Inc. 500/5000 list for several consecutive years.
With more than $1.2 billion in funded transactions, Channel has a proven track record of serving small businesses across various industries.
Overall, reviews for Channel are generally positive. The company has earned praise for its streamlined funding process, excellent partner support, and consistent delivery on its service promises. Channel has a 4.9 out of 5 rating on over 960 Trustpilot reviews.
Customers and partners often mention the speed of funding, responsive communications, and helpful employees. Many users note how Channel’s approach helped them grow or maintain their business operations during challenging circumstances. Several reviews highlight how easy the application process was, and partners appreciate the technology tools provided by Channel. Several users mentioned their contact person by name, expressing their commitment to the company’s success. Jason Dorsey is noted for being responsive and helpful during the loan process at Channel Partners Capital.
Most negative reviews come from businesses that misunderstand repayment terms or are unaware that Channel works exclusively through partners. Some customers expressed concerns about daily repayments affecting their cash flow or communication delays during onboarding. However, these complaints are rare and are often addressed by the company’s support team.
If Channel denies your application, it’s often due to insufficient time in business, low revenue, or poor cash flow. Since the company evaluates each deal individually, denials are not always final—especially if your business improves over time.
The denial letter should explain why you were denied and when you can apply again. If not, contact your business financing provider directly for more information.
Fortunately, there are many small business lenders, most of whom allow for direct applications. Many lenders provide equipment financing and working capital solutions. You might also be interested in one of the following small business loans:
Channel Partners Capital is a smart choice for equipment finance companies looking to offer more to their clients and for small businesses seeking fast, flexible working capital solutions. The company’s unique approach to funding through trusted partners ensures a high level of service and a strong commitment to long-term relationships.
If you understand the short-term nature of their loans and can handle the repayment structure, Channel offers a reliable and efficient way to access capital when needed. For the right type of business, especially those in need of fast funds, Channel remains a powerful financing partner.
Based on the available information, we rate Channel Partners Capital 3 out of 5. It’s a solid option for affiliate partners, but the lack of direct applications and other financing options limits its usefulness for most small business owners.
Disclaimer: The Channel Capital Partners trademark is owned by Channel Capital Partners LLC, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Channel Capital Partners LLC.
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