Partner program · Attorneys
Business Loan Referral Program for Business Attorneys
Business clients bring their attorney the contract, the lease, the partner buyout, the collection problem. Many of those matters turn on cash. Here is how business attorneys refer the financing side to RAN Funding, and what the professional rules say about doing it.
Can Attorneys Refer Clients for Business Financing?
Yes. An attorney can introduce a business client who needs financing to a funding company like RAN Funding. Whether the attorney may accept a referral commission is a professional-responsibility question: a lawyer’s financial interest in a referral is a potential conflict, and state bar rules and ethics opinions decide what is allowed and what client consent is required. Some attorneys refer without taking any compensation. RAN Funding’s partner agreement sets any commission in writing before the first introduction.
Matters Where Financing Comes Up
| Matter | Where cash becomes the constraint | Typical product |
|---|---|---|
| Partner or shareholder buyout | Paying the departing owner without draining operating cash | Term loan or SBA 7(a), when the file qualifies |
| A large new contract | Mobilization costs before the first invoice is paid | Working capital or receivables financing |
| Collections and slow-paying customers | Receivables tied up for 60 to 90 days | Receivables financing |
| A lease for a new location | Build-out and equipment before opening | Equipment financing or a term loan |
| A tax payment plan or settlement | A lump sum due on a fixed date | Working capital, where the file supports it |
You do not need to choose the product. A line on the matter, the amount and the deadline is enough.
What the Professional Rules Say
This is the part to settle before you sign anything. It is general information, not an ethics opinion.
- Conflict of interest. ABA Model Rule 1.7(a)(2) treats a significant risk that a lawyer’s own interests will limit the representation as a conflict. Where a conflict is consentable, the rule requires the client’s informed consent, confirmed in writing.
- Your state’s rules control. State bars have issued ethics opinions on lawyers accepting compensation from non-lawyer service providers they recommend. Some permit it with disclosure and written consent; some restrict it or expect the benefit to go to the client. Read your state’s opinion first.
- Do not give legal advice about the financing offer as the referral partner. If the client wants you to review the financing agreement as their lawyer, the conflict question is sharper. Consider declining compensation for that matter.
- Confidentiality. Get the client’s permission before sharing their name, number or anything about the matter.
How the Referral Works
- Sign up on the partner page, or simply give the client our number if you are not taking compensation.
- We call within one business day to walk through the partner agreement.
- Introduce the client with their permission and a line on the need and deadline.
- One specialist runs the file, collecting a short application and the 3 most recent business bank statements (4 in NY, CA or VA).
- The client reviews offers and decides, with you as their lawyer if they choose.
What a Good Referral Looks Like
- A year or more in business (sometimes six months).
- $20,000+ in average monthly revenue in a business bank account.
- 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.
Startups and personal borrowing are not a fit. Meeting the criteria does not guarantee an offer.
How Commission Works, If You Accept It
We do not publish commission figures. Where a partner accepts compensation, RAN Funding pays a share of the commission it earns from the lender when a deal funds, set in writing in the partner agreement and paid at funding, typically by ACH. Nothing is paid on a file that does not fund, and the client does not pay you.
When Financing Is the Wrong Answer
A client in active litigation over its own solvency, or one that loses money every month, is usually better served by restructuring advice than by new debt. Faster business financing also costs more in total than bank or SBA loans. If the client has time and strong financials, say so.
Common Questions
Can a lawyer accept a referral fee from a business funding company?
It depends on your state’s rules. A lawyer’s financial interest in a referral is a potential conflict under ABA Model Rule 1.7, and state bar ethics opinions decide whether compensation is allowed and what disclosure and written consent are required. Check your state’s opinion before accepting any compensation.
Can I refer a client without taking a commission?
Yes. Give the client our number or send the introduction. The client gets the same specialist and the same process.
Will RAN Funding contact my client about anything else?
No. We contact the client only about the financing they asked for. There is no cross-selling and no marketing list.
What size of financing can clients get?
From $20,000 up to $2 million on non-SBA products and up to $5 million through the SBA, depending on the file. Not every application is approved.
Is RAN Funding a lender?
No. RAN Funding is a business financing broker. The lender sets the approval, amount, rate, fees and terms.
Sources
- Rule 1.7: Conflict of Interest: Current Clients — American Bar Association
- Rule 1.6: Confidentiality of Information — American Bar Association
Have a Client Who Needs Financing?
Sign up in two minutes, or call 877-522-6045 to talk it through first.
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