Referral Partner Guide
A referral agreement is a contract between a referral partner—broker, vendor, CPA, or advisor—and a financing firm. It defines how introductions are made, when compensation is paid, what happens if a deal defaults, and how introduced prospects are protected. Understanding referral agreements helps partners know their rights, obligations, and what to expect before submitting deals.
Referral agreements protect both parties. Without a signed agreement, confusion can arise about when payment is due, who owns the referral, what happens if a deal falls through, and how introduced prospects are protected. A well-drafted agreement clarifies these points and establishes a professional relationship.
Brokers, vendors, and advisors who refer deals need to know they will be compensated when deals close. Financing firms need to know the referral partner has agreed to the terms—including clawbacks and prospect protection. The referral agreement is the foundation. Learn more about commercial lending referral fees and the referral partner program. Partners who send declined business loans must have a signed agreement before submitting.
Common provisions and what they mean:
The agreement defines how much the referral partner receives and when. Most commercial lending referral agreements use revenue share—a percentage of the gross commission or revenue from the funded transaction. Payment is typically issued within 30 days of the financing firm receiving funds. No payment is made for introductions that do not result in a funded deal.
Deals are evaluated on their merits; no approval is promised. When a deal closes through the financing partner's network, the referral partner's compensation is calculated per the agreement. Review the full referral agreement for exact terms. See also commercial lending referral fees for how fees work in practice.
Clawbacks. If a funded deal later defaults, is rescinded, or causes a chargeback, the financing firm may claw back the referral fee. This is standard—lenders and financing firms share risk, and referral partners share that risk when they receive compensation. The agreement spells out the exact triggers and process.
Prospect protection. Introduced prospects are protected for a defined period (e.g., 60 months under the Axiant Partners agreement). During this time, neither party may bypass the other to work directly with the prospect or funding source. This protects the referral relationship. See non-circumvention referral agreements for more detail.
Brokers, lenders, ISOs, equipment vendors, CPAs, fractional CFOs, and business consultants who refer deals to a financing firm need a signed referral agreement before submitting any referrals. Deals submitted without a signed agreement are not eligible for compensation. The agreement must be reviewed and signed before the first referral.
If you work for a vendor, dealership, or brokerage, you are responsible for obtaining any required employer authorization. The agreement places this responsibility on the referrer. Review the referral agreement, sign it, and send declined business loans or other opportunities for evaluation. Learn more at the referral partner overview.
Partners sign the agreement. Deals cannot be submitted until signed.
Submit borrower and request details. Declined deals may be evaluated for second look.
We evaluate opportunities and identify possible funding paths. No approval is promised.
When a deal closes, partners receive 35% revenue share per the agreement.
FAQ
A referral agreement is a contract between a referral partner (broker, vendor, CPA, advisor) and a financing firm. It defines how introductions are made, when compensation is paid, what happens if a deal defaults, and how introduced prospects are protected. Both parties must sign before any referrals are submitted.
A signed agreement protects both parties. It defines compensation, payment timing, clawbacks, prospect protection, and compliance expectations. Without it, confusion can arise about when payment is due, who owns the referral, and what happens if a deal falls through.
Key terms typically include: compensation (e.g., 35% revenue share), payment timing (e.g., 30 days post-funding), clawback if deal defaults, prospect protection period, non-circumvention, and compliance responsibilities. Each agreement may vary.
Prospect protection defines how long an introduced prospect is tied to the referral relationship. Under the Axiant Partners agreement, introduced prospects are protected for 60 months from initial introduction. This prevents either party from bypassing the other after an introduction.
A clawback allows the financing firm to recover referral fees if a funded deal later defaults, is rescinded, or is charged back. This is standard in commercial lending—referral partners share risk when they receive compensation.
No. Deals submitted without a signed referral agreement are not eligible for compensation. The agreement must be reviewed and signed before any referrals are submitted.
Ready to refer deals?
Review the agreement, sign it, and submit opportunities for evaluation.
