Broker Compensation
Brokers earn from referring loans when the referred deal closes and the financing firm receives compensation. Revenue share—often a percentage of the commission—is paid to the broker per the referral agreement. Compensation is based on successful placements, not introductions alone. This page explains how the economics work.
Referral submissions should follow agreement review and signature.
Introduction
Brokers make money from referring loans when the referred deal closes and the financing firm receives compensation. The broker does not earn for the introduction alone—the deal must fund. The compensation structure is typically defined in a referral agreement and often takes the form of revenue share: a percentage of the gross commission the financing firm receives from the funded transaction.
Brokers who send declined business loans and hard-to-place files can earn when those deals close through a referral partner. Participants in the commercial lending ISO program and other referral partners operate under the same model. For declined deals that find a fit elsewhere, the broker preserves the client relationship and may earn revenue share. Compensation varies by program; brokers should review the specific agreement.
Why This Matters
Brokers who refer deals need to understand when and how they get paid. Compensation is not guaranteed—it depends on the deal closing. Brokers should also understand payment timing, clawback provisions, and prospect protection. These terms are in the referral agreement and affect the economics of the relationship.
For brokers with declined deals, referral compensation creates a way to monetize opportunities that would otherwise go cold. Instead of saying no and losing the client, the broker refers the deal. If it closes, the broker earns. If it doesn't, the broker has still offered the client a second look—which can preserve the relationship for future opportunities. Understanding the compensation model helps brokers decide when to refer and what to expect.
Common Scenarios
How It Works
The broker reviews and signs the referral agreement. The agreement defines the revenue share (e.g., 35% of gross commission), payment timing (e.g., within 30 days of receipt of funds), and clawback provisions (e.g., if the funded transaction later defaults or is rescinded). The broker then refers deals for review.
When a referred deal closes and the financing firm receives its commission, the firm pays the broker their share per the agreement. Compensation is based on successful placements—not introductions alone. If the deal does not close, the broker does not receive compensation. Approval and funding are not guaranteed. The economics are simple: the broker earns when the deal funds.
Review the referral agreement and sign before submitting any deals.
Share basic borrower and request details by emailing us.
Our team evaluates the situation and identifies what may be possible.
If the deal closes and we receive compensation, you receive your share per the agreement.
Payment is issued within 30 days of our receipt of funds from the funded transaction.
Practical Examples
Example 1: A broker refers a $200,000 equipment deal. The deal closes. The financing firm receives a $6,000 commission. At 35% revenue share, the broker receives $2,100. Payment is issued within 30 days of the firm receiving funds.
Example 2: A broker refers a declined working capital deal. The deal does not close—no lender fit. The broker receives no compensation. The broker has still offered the client a second look, which may preserve the relationship.
Example 3: A broker refers a $500,000 SBA deal. The deal closes. The financing firm receives a $15,000 commission. At 35% revenue share, the broker receives $5,250. Payment is issued per the agreement. If the loan later defaults and the firm must return commission, clawback provisions may apply.
When Used
Brokers earn from referrals when the referred deal closes and the financing firm receives compensation. This happens when a broker has a deal that doesn't fit their direct lender lineup, refers it to a partner with broader access, and the partner successfully places the deal. The broker earns at that point—not before.
Brokers who send declined business loans and declined deals are the most common earners. These are deals that would otherwise go cold. The referral creates a second path; if the path leads to funding, the broker earns. The key is that compensation is contingent on the deal closing. No close, no compensation.
How Axiant Reviews
Axiant Partners pays referral partners 35% revenue share when deals close and we receive compensation. Payment is issued within 30 days of our receipt of funds from the funded transaction. Compensation is subject to clawback if the funded transaction later defaults, is rescinded, charged back, or causes us to return any portion of our commission. The full terms are in the referral agreement.
We review each referred deal on its merits. We work with referral partners, participants in our commercial lending ISO program, and brokers who send declined business loans. Deals are reviewed; placement depends on lender fit. Approval is not guaranteed. When a deal closes and we receive compensation, partners receive their share per the agreement.
FAQ
Brokers typically earn money from referring loans through revenue share or commission when deals close. The broker refers the opportunity to a financing firm or lender; when the transaction funds and the firm receives compensation, the broker may receive a percentage (e.g., 35% revenue share) per the referral agreement. Compensation is based on successful placements—not introductions alone.
Revenue share is a percentage of the commission or fee the financing firm receives when a referred deal closes. For example, a 35% revenue share means the referrer receives 35% of the gross commission the firm receives from the funded transaction. Payment is typically issued within 30 days of receipt of funds.
Yes. When a broker refers a declined or hard-to-place deal and that deal subsequently closes through the referral partner, the broker may receive revenue share per the agreement. Compensation is based on successful placements—not on the referral alone. The deal must fund for the broker to earn.
Brokers typically receive referral compensation when the referred deal closes and the financing firm receives its commission. Payment is often issued within 30 days of receipt of funds. Some agreements include clawback provisions if the funded transaction later defaults or is rescinded.
No. Broker referral compensation is based on successful placements. The referred deal must close and fund for the broker to earn. If the deal does not close, the broker does not receive compensation. Approval and funding are not guaranteed.
Revenue share varies by program. Some commercial lending referral programs offer 35% revenue share on funded transactions. The broker receives a percentage of the gross commission the financing firm receives. Partners should review the specific referral agreement for terms.
Ready to refer deals?
If you have deals you can't place, review the referral agreement, sign it, and send them for review. Earn when deals close.
Referral submissions should follow agreement review and signature.
