Educational Guide
Can Vendors Get Paid for Referring Financing?
Many professionals who work with business owners encounter financing opportunities but are not always aware that referral partnerships exist in commercial finance.
How Vendors Encounter Financing Opportunities
Vendors often work with customers who require financing to complete purchases. Financing is frequently needed to close transactions.
Examples include:
- Equipment vendors
- Truck dealers
- Technology vendors
- Manufacturing equipment suppliers
When a buyer needs financing to complete a purchase, the vendor may introduce the customer to a financing partner. This creates an opportunity for the vendor to help close the sale while potentially participating in a referral partnership. Vendors with hard-to-place business loans or send declined deals scenarios can use the referral partner process.
How Referral Partnerships Work
In commercial finance, referral partnerships typically follow a straightforward flow:
- The vendor introduces a client needing financing—The referral partner identifies a customer or business owner who needs funding.
- The financing partner reviews the opportunity—The financing firm evaluates the deal and works to match it with appropriate funding sources.
- If a transaction successfully funds, the referral partner may receive revenue share—Compensation is typically based on the agreement between the parties.
Structures vary by agreement. Compensation, payment timing, and other terms are defined in the referral agreement between the vendor and the financing firm. The commercial lending ISO program uses similar structures for brokers and ISOs.
Is It Legal to Get Paid for Referring Financing?
Referral partnerships are common in commercial finance. However, policies vary depending on several factors:
- Company employment rules—Some employers restrict or prohibit employees from receiving referral compensation. Review your company's policies.
- Licensing requirements—Certain types of financing may have licensing or registration requirements that affect who can receive referral fees.
- Agreements between parties—Existing contracts or agreements may limit or define referral arrangements.
We encourage readers to review their employer policies and applicable agreements before participating in a referral partnership. This page does not provide legal advice.
Axiant Partners
How Axiant Partners Works With Referral Sources
Axiant Partners works with referral partners who introduce financing opportunities. We connect business owners with lenders offering various financing solutions and specialize in situations where traditional banks or single-lender programs may not be the right fit.
Referral partners may receive 35% revenue share when funded transactions result from their introduction. Compensation is based on successful placements—not introductions alone.
Partners should review and sign the referral agreement before submitting deals. The agreement defines compensation, protects both parties, and establishes the process.
Next Steps
Interested in Referring Financing Opportunities?
Review the referral agreement, sign it, and submit opportunities for review. Referral submissions should follow agreement review and signature.