Business Loan Referral Program for Business Brokers and M&A Advisors

Can a Business Broker Earn a Referral Fee for Business Loans?

Yes, in most cases. A business broker or M&A advisor can earn a referral fee for introducing a client to a business funding company, as long as the fee is disclosed to the client in writing and the broker’s own license, firm or engagement terms allow it. Registered representatives need written notice to their FINRA firm (Rule 3270), real estate licensees should check their brokerage rules, and California regulates paid introductions to commercial lenders. With RAN Funding, the fee is a share of the lender’s commission, set in a written partner agreement and paid only when the deal funds.

Where Financing Shows Up in a Business Sale

Most brokers see the same pattern: the letter of intent is signed, diligence is going well, and then someone runs short of cash. The financing need is rarely the purchase price itself. It sits around the deal.

You do not need to pick the product. Describe the deal, the timing and the gap, and the specialist matches the file to what the business may qualify for.

Why Brokers Refer Instead of Arranging Financing Themselves

• Your time stays on the deal. Collecting bank statements and chasing lenders is not what your engagement fee covers.
• One application reaches a network. RAN Funding is a broker, not a lender: one application goes to the lenders in our network whose criteria fit the file.
• Fewer dead deals. A seller who cannot fund a pre-sale cleanup, or a buyer who cannot cover the first payroll, puts the close at risk.
• You are paid for an introduction you would make anyway, under a written partner agreement, and only when the financing funds.

How the Referral Works, Step by Step

1. Sign up on the partner page. It takes about two minutes. We call within one business day to walk through the partner agreement.
2. Get your materials. Once the agreement is in place you receive a co-branded landing page and partner link.
3. Introduce the client. Send the owner’s or buyer’s name and number with one line on the deal: what the money is for, how much and by when.
4. One specialist runs the file. They collect a short application and the 3 most recent business bank statements (4 in NY, CA or VA), then submit to the lenders in our network that fit.
5. The client reviews offers. The specialist walks through each one. If you want to be on that call, tell us.
6. The financing funds and you are paid per the partner agreement.

What a Good Referral Looks Like

The program is for operating businesses with real deposits. Best-fit files usually have:

• A year or more in business (sometimes six months). For a buyer, that means the business being bought, not the buyer’s new entity.
• $20,000+ in average monthly revenue in a business bank account.
• The 3 most recent business bank statements (4 in NY, CA or VA), complete and unedited.
• A defined use of funds and a date it is needed by.
• A request from $20,000 up to $2 million on non-SBA products, or up to $5 million through the SBA.

Meeting these points does not guarantee an offer. Every file is reviewed and the lender makes the decision.

When the Buyer Needs an SBA Acquisition Loan

An SBA 7(a) loan can finance a change of ownership, and it is often the cheapest route for a qualified buyer. It is also the slowest and the most document-heavy, so introduce the buyer early rather than three weeks before the closing date.

If the buyer does not fit the SBA rules, the specialist will say so early and explain whether a non-SBA product can cover part of the need. Read our guide to SBA loan terms for the current program rules.

What Happens After the Introduction

The specialist calls the client within one business day, collects the application and statements, and submits the file to the lenders in our network that fit. The lender makes the funding decision; RAN Funding does not fund deals itself. You get updates as the file moves: received, submitted, offer made, funded or declined.

Your client stays your client. We contact them only about the financing they asked for. There is no cross-selling and no marketing list.

How Commission and Payment Timing Work

We do not publish commission figures. RAN Funding pays partners a share of the commission it earns from the lender when a deal funds. The split depends on the type of partner and whether you send an introduction or a complete file, and it is set in writing in the partner agreement before you refer anyone.

• Paid at funding, on the schedule in the partner agreement, typically by ACH.
• Nothing is paid on a file that does not fund.
• The client does not pay you. Your share comes out of what the lender pays RAN.
• Renewals are covered by the agreement if the client funds again later.

For how these arrangements are structured across the industry, read business loan referral fees.

Disclosure, Licensing and Your Engagement Terms

No license is needed for a basic referral introduction through RAN Funding’s program. Your own professional rules still apply, and a referral commission is a conflict of interest that should be handled in the open.

• Registered representatives. If you are registered with a FINRA member firm, FINRA Rule 3270 requires written notice to your firm before you take part in an outside business activity for compensation. Ask your compliance team before you sign up.
• Real estate licensees. In several states business brokerage falls under real estate licensing. Check whether your license terms or brokerage agreement limit outside referral compensation.
• California. Paid introductions to commercial lenders are regulated under the California Financing Law. Read our guide to California commercial financing rules.
• Your engagement letter. Read it for conflict-of-interest and outside-compensation terms, and disclose the referral arrangement to your client in writing before the introduction.

When Financing Is the Wrong Answer

Financing fits a timing gap or an investment with a clear return. It does not fix a business that loses money every month, and adding a short-term payment right before a sale can hurt the numbers a buyer’s lender will read. If a pre-sale advance would leave the seller with a large balance at closing, say so. Faster products usually cost more in total than bank or SBA financing.

Three Illustrative Scenarios

These are hypothetical examples of how a referral can go. They are not descriptions of specific clients or results.

• The pre-sale cleanup. A distribution company under letter of intent is carrying two short-term balances that make its cash flow look worse than its earnings. The broker introduces the owner; the specialist reviews whether a single term loan can replace them before diligence closes.
• The first payroll. A buyer closes on an established landscaping company with an SBA loan and needs working capital for the spring ramp. The broker sends the introduction a month before closing so the file is ready on day one.
• The broker who does not refer. A seller asks for an advance to cover a shortfall caused by falling sales. The broker sees that new debt would hurt the sale and advises against it.

Common Questions