Referral Agreement Terms
Non-circumvention provisions in referral agreements restrict either party from bypassing the other after an introduction. They protect the referral partner from being cut out after introducing a prospect, and protect the financing firm from the referrer going directly to its lenders. Understanding non-circumvention helps both parties know their rights and obligations under the referral agreement.
Without non-circumvention, either party could bypass the other after an introduction. A referral partner could learn the lender's identity and go directly to the lender for future deals. A financing firm could learn the prospect's identity and work with them directly, cutting out the referrer. Non-circumvention prevents this and keeps the relationship fair.
Referral agreements with strong non-circumvention provisions give both parties confidence to invest in the relationship. The referrer knows they will be compensated when deals close and that their introductions are protected. The financing firm knows the referrer will not bypass them to work directly with lenders. Learn more about referral agreements explained, commercial lending referral fees, and the referral partner program. Partners who send declined business loans must have a signed agreement that includes these protections.
Typical protections in commercial lending referral agreements:
Prospect protection defines how long an introduced prospect is tied to the referral relationship. Under the Axiant Partners referral agreement, introduced prospects are protected for 60 months from initial introduction. During this period, the financing firm cannot bypass the referrer to work directly with the prospect outside the agreement. This gives the referrer confidence that their introductions will be honored.
The agreement term (e.g., 24 months) is separate from the prospect protection period. Even after the agreement term ends, introduced prospects may remain protected for the full prospect protection period. Review the referral agreement for exact terms. Deals are evaluated on their merits; no approval is promised. When deals close, referral fees are paid per the agreement.
Referrer introduces a prospect. A broker refers a client who was declined by their bank. The broker has a signed referral agreement with a financing firm. The financing firm evaluates the deal and may match it to a lender. If the deal closes, the broker receives revenue share. The prospect is protected—the financing firm cannot later bypass the broker to work directly with that client for 60 months.
Financing firm introduces a lender. The financing firm matches the deal to a lender in their network. The broker cannot bypass the financing firm to submit future deals directly to that lender. Both parties are protected. Partners who send declined business loans through the referral partner process operate under these terms.
If either party circumvents the other in violation of the agreement, the agreement typically defines remedies. These may include damages, injunctive relief, or other remedies. Specific terms depend on the agreement. Both parties should read and understand the non-circumvention provisions before signing.
Referral partners should review the full referral agreement—including non-circumvention and prospect protection—before submitting deals. The agreement protects both parties and establishes a professional relationship. Learn more at referral agreements explained and commercial lending referral fees.
Partners review and sign the referral agreement with non-circumvention and prospect protection.
Submit borrower and request details. Introduced prospects are protected per the agreement.
We evaluate opportunities and identify possible funding paths. No approval is promised.
When a deal closes, partners receive 35% revenue share per the agreement.
Prospects protected for 60 months. Both parties honor non-circumvention.
FAQ
Non-circumvention provisions restrict either party from bypassing the other after an introduction. They typically prevent the referral partner from going directly to the financing firm's lenders, and prevent the financing firm from going directly to the referral partner's introduced prospects—outside the agreement.
Non-circumvention protects both parties. Without it, a referral partner could introduce a prospect, learn the lender's identity, and then bypass the financing firm to work directly with the lender. Similarly, the financing firm could bypass the referrer and work directly with the prospect. The provision prevents this.
Protection periods vary by agreement. Under the Axiant Partners referral agreement, introduced prospects are protected for 60 months from initial introduction. The agreement term is 24 months. Other programs may use different periods.
The agreement typically defines remedies for breach—which may include damages, injunctive relief, or other remedies. Specific terms depend on the agreement. Both parties should understand the consequences before signing.
Yes. Non-circumvention typically protects both the referral partner and the financing firm. The referrer cannot bypass the financing firm to work directly with introduced lenders; the financing firm cannot bypass the referrer to work directly with introduced prospects outside the agreement.
Yes. A signed referral agreement—which includes non-circumvention and prospect protection—is required before submitting any referrals. Deals submitted without a signed agreement are not eligible for compensation.
Ready to refer deals?
Sign the agreement with non-circumvention and prospect protection, then submit opportunities.
