Partner program · Banks and credit unions
Business Loan Referral Program for Banks, Credit Unions and Loan Officers
Every bank turns down business owners it would like to keep: the file is too new for the credit box, the need is too fast for committee, or the amount is outside policy. A referral relationship lets the institution keep the depository relationship while the owner finds financing elsewhere. Here is how it works, and why it has to be set up at the institution level.
How Do Banks Refer Declined Business Loan Applicants?
Banks and credit unions refer business owners they cannot approve, or cannot approve fast enough, to outside funding companies through a written institution-level referral agreement approved by compliance. The owner keeps banking with the institution; the funding company works the financing through its lender network. Individual employees should not take personal referral payments outside their institution’s policy: the federal Bank Bribery Act makes it a crime for bank officers and employees to corruptly accept anything of value in connection with the institution’s business.
When a Referral Serves the Customer
| Situation at the bank | What the owner may need | Typical product through RAN Funding |
|---|---|---|
| Outside the credit box: time in business, credit or collateral | Capital sized to deposits rather than collateral | Working capital or a term loan |
| Approved, but the timeline is weeks | Money for payroll or an order this week | Working capital, as a bridge |
| Large receivables from slow-paying customers | Cash against invoices | Receivables financing |
| Equipment outside the bank’s appetite | Financing secured by the equipment | Equipment financing |
| SBA loan the bank does not originate | An SBA lender in our network | SBA 7(a), when the file qualifies |
The owner keeps their operating account with you. A good referral protects the relationship rather than sending the customer to a competitor bank.
Why the Agreement Belongs to the Institution
The federal Bank Bribery Act, 18 U.S.C. § 215, makes it a crime for an officer, director, employee or agent of a financial institution to corruptly accept anything of value intending to be influenced or rewarded in connection with the institution’s business. The federal banking agencies’ guidelines on the Act expect each institution to have a code of conduct that covers outside payments to employees.
- Any referral compensation should be paid to the institution under a written agreement its compliance team has approved, or handled exactly as your code of conduct allows.
- Loan officers should not accept personal payments, gifts or favors from RAN Funding or any other funding company outside that policy.
- If your institution does not allow referral compensation, you can still refer customers without it.
How an Institution-Level Referral Works
- Contact us through the partner page as the institution, or ask your compliance or partnerships team to.
- We review the agreement together. Compensation, if any, is set in writing and paid to the institution.
- Your officers introduce declined or time-sensitive applicants with the customer’s permission.
- One specialist runs the file, collecting a short application and the 3 most recent business bank statements (4 in NY, CA or VA).
- The owner reviews offers and decides. The owner’s operating account stays with you.
What a Good Referral Looks Like
- A year or more in business (sometimes six months).
- $20,000+ in average monthly revenue.
- A defined use of funds and a deadline.
- 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.
Protecting the Customer
Faster business financing usually costs more in total than bank or SBA credit. The specialist shows the total payback on every offer before the owner decides, and will tell an owner when waiting for a bank decision is the better choice. Share the customer’s information only with their consent and as your privacy policy allows.
Common Questions
Can a bank employee accept a referral fee from a business funding company?
Not personally outside the institution’s policy. The Bank Bribery Act (18 U.S.C. § 215) prohibits officers and employees of financial institutions from corruptly accepting anything of value in connection with the institution’s business. Referral arrangements should be made by the institution under a written agreement approved by compliance.
Does the customer have to move their bank account?
No. The owner keeps their operating account with you. RAN Funding arranges financing through its lender network.
Can credit unions refer members?
Yes, under the same institution-level approach. Credit union employees are covered by the Bank Bribery Act as well.
What size of financing can customers 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
- 18 U.S.C. § 215: Receipt of commissions or gifts for procuring loans — Legal Information Institute, Cornell Law School
- 2026 Report on Employer Firms — Federal Reserve Banks
Set Up a Referral Agreement for Your Institution
Reach us through the partner page or call 877-522-6045. We work with the institution, never privately with an employee.
More on the Referral Partner Program