Loan Brokers
Files that don't fit the current lender lineup. Brokers send declined deals to advisory firms when deals fall outside their lender's credit box or program limits.
Industry Resource
Where Brokers Send Declined Business Loan Deals
Loan brokers, lenders, vendors, and advisors often encounter business financing opportunities that fall outside traditional lender credit boxes. This page explains how those deals are sometimes placed through broader lending networks. See our declined business loans guide for a full overview.
- Broader credit standards than many traditional lenders
- Deals from approximately $10K to $5M+ depending on structure
- 35% revenue share on funded transactions
Referral submissions should follow agreement review and signature.
Understanding the Market
Why Deals Get Declined
Traditional lenders decline business financing for many reasons. Understanding these factors helps brokers and advisors know when to seek alternative placement options.
Common reasons deals are declined by traditional lenders include:
- Borrower credit below lender thresholds—FICO scores or credit history that fall outside the lender's credit box.
- Lender exposure caps reached—The lender has already extended maximum exposure to the borrower, industry, or geography.
- Deal size outside lender program limits—Requested amount too small or too large for the lender's programs.
- Industry restrictions—Certain industries may be excluded from a lender's appetite.
- Time in business requirements—Borrower may not meet minimum tenure thresholds.
- Complex deal structures—Transactions that don't fit standard templates or require non-standard terms.
- Equipment purchases needing alternative financing—Buyers who need financing outside the vendor's in-house program.
These declines do not always mean the deal is unfinanceable. Different lenders have different appetites. Where to place declined loan files often depends on finding a lender or advisory firm with broader credit standards or a different risk profile.
Placement Options
Where Brokers Send Declined Deals
Many brokers send declined deals to financing advisory firms that maintain broader lender relationships capable of reviewing complex or hard-to-place transactions. These firms work with multiple lenders—including second look commercial lenders—and can match deals to programs that may have different credit standards or program guidelines.
Lenders that take declined deals often specialize in situations where traditional bank financing is not the right fit. They may consider equipment-backed financing, revenue-based structures, or alternative collateral arrangements. Send declined business loan deals to these networks for review—approval is not guaranteed, but deals may qualify depending on the structure of the transaction.
Broker declined deals and lender exposure capped deals are common scenarios. Referral partners, commercial lending ISO program participants, and equipment vendors can send declined deals and hard-to-place business loans for review. Review the referral agreement before submitting.
Deal Sources
Who Sends Hard-to-Place Deals
Professionals who frequently send declined or hard-to-place deals include:
Commercial Lending ISOs
Deals outside program guidelines or credit parameters. Commercial lending ISO program participants seek second look lenders when their primary programs cannot accommodate the transaction.
MCA Shops
Clients who need a different funding path—term loans, equipment financing, or structures outside the MCA product suite.
Banks & Credit Unions
Declined files or exposure-capped deals that may qualify elsewhere. Lenders for declined borrowers sometimes refer through partner networks.
Equipment Vendors
Buyers who need financing outside standard vendor programs. Equipment vendors often encounter hard-to-place business loans. Deal size, credit, or structure may require alternative lenders.
Consultants & Advisors
Clients who need working capital, equipment financing, or acquisition funding. Advisors encounter deals that require broader placement options.
Credit Considerations
What Credit Profiles May Qualify
Traditional lenders often require strong credit. Some alternative financing programs may review deals starting around 500+ FICO depending on the structure of the transaction, revenue profile, time in business, and collateral strength.
Different lenders have different credit boxes. Hard-to-place business loans may qualify depending on the structure of the deal. Equipment-backed financing, revenue-based structures, or strong collateral can sometimes create options for lenders for declined borrowers. Approval is not guaranteed—each deal is evaluated on its merits.
Deal Types
Types of Deals Often Sent for Review
Financing structures vary depending on the situation. The following are examples of deal types commonly sent for second look review.
- Equipment financing
- Working capital loans
- Business term loans
- Lines of credit
- Accounts receivable financing
- Revenue-based financing
- Commercial real estate financing
- Bridge loans
- Business acquisition financing
Axiant Partners
How Axiant Partners Reviews Deals
Axiant Partners works with referral partners who introduce financing opportunities. We connect business owners with lenders offering various financing solutions.
1
Review and sign the referral agreement
Partners review and sign the referral agreement before submitting any deals.
2
Submit deal information
Share borrower and request details by emailing us.
3
Opportunity reviewed for potential lender matches
We evaluate the situation and identify possible funding paths.
4
Referral partner stays informed during the process
Communication remains clear throughout review and placement.
5
Referral partners may earn revenue share if a transaction successfully funds
When a deal closes and we receive compensation, partners receive their share per the agreement.
Required Step
Review the Referral Agreement Before Sending Deals
Referral partners should review and sign the referral agreement before submitting opportunities. The agreement defines compensation, protects both parties, and establishes the process.
FAQ
Questions about where brokers send declined deals
Where can brokers send declined business loan deals?
Many brokers send declined deals to financing advisory firms that maintain broader lender relationships capable of reviewing complex or hard-to-place transactions. These firms work with second look lenders and alternative financing programs. A signed referral agreement is typically required before submitting deals.
What credit scores can qualify for alternative financing?
Some alternative financing programs may review deals starting around 500+ FICO depending on deal structure, revenue profile, time in business, and collateral strength. Different lenders have different credit boxes. Approval is not guaranteed—deals may qualify depending on the structure of the transaction.
Can lenders send deals they cannot fund?
Yes. Banks, credit unions, and other lenders with declined files or exposure caps can refer deals through referral partner programs. When a lender cannot fund a deal due to policy, exposure limits, or credit box, the deal may qualify for a second look through a broader lending network.
What happens if a borrower was declined by a bank?
Deals declined by banks may still deserve a second look. Second look commercial lenders and financing advisory firms work with lenders that have broader credit standards. Equipment-backed, revenue-based, or alternative structures may create options depending on the deal.
Do I need to sign a referral agreement before sending deals?
Yes. Referral partners must review and sign the referral agreement before submitting any deals. The agreement defines compensation, protects both parties, and establishes the process. Deals cannot be submitted until the agreement is signed.
How do referral partners get paid?
Referral partners typically receive revenue share on funded transactions—often around 35% of gross commission received. Payment is usually issued within 30 days of receipt of funds. Compensation is based on successful placements, not introductions alone.
Have a Deal You Can't Place?
Submit the opportunity for review
Submit the opportunity for review through the referral partner process. Review and sign the agreement, then send the deal through our referral form.
Referral submissions should follow agreement review and signature.