> Disclaimer: Loanable is a commercial funding marketplace, not a lender. Referral compensation varies by deal and is not guaranteed. This article is educational—not legal, tax, or accounting advice.
By the Loanable Editorial Team · Partner editorial · Updated October 2026
Business loan referral fees are how accountants, consultants, agencies, and software platforms get paid for introducing business owners to funding. The basics are simple. The details depend on the program, the product, and the rules that apply to you. If you're weighing a program like the Loanable referral partner program, start here.
Business loan referral fees at a glance
- A referral fee is compensation for introducing a business owner to a funding source.
- It is usually paid only when the deal funds, not when the client applies.
- Common structures are a share of the funder's or marketplace's revenue, a percentage of the funded amount, or a flat fee.
- Amounts vary by product, deal, and program. There is no single standard rate.
- Best practice is to disclose the fee to your client in writing before you refer.
- Some professions, states, and loan programs restrict fees or require them to be disclosed.
- Referrers don't underwrite, quote rates, or promise approval. The funder does that.
What a business loan referral fee is (and isn't)
A referral is an introduction. You connect a business owner with a marketplace or lender. Then you step back. The funding company takes the application, reviews it, makes offers, and funds the deal.
A broker usually does more. Brokers may collect documents, present offers, and help negotiate terms. That extra activity can bring licensing and disclosure duties in some states. A lender or funder is the company that actually provides the money.
The line between these roles matters. It affects what you can say, what you can do, and which rules apply. Our guide to ISO vs broker vs referral partner covers the full definitions. If you want to stay on the referral side, read how to refer business funding without becoming a broker.
How referral fees are calculated
Programs use a few basic models. Many programs don't publish exact rates. They explain the formula in a partner agreement instead. The numbers below are round and hypothetical. They are illustrations only, not typical or expected amounts.
Share of the funding company's revenue
Here, the referrer gets a share of what the funder or marketplace earns on a funded deal. The agreement defines what counts as revenue and which costs come out first.
Illustration only: say a marketplace earns a hypothetical amount on a deal, called "N," after defined costs. A program that pays half of net would pay the referrer N ÷ 2. The actual N depends entirely on the product and deal. It could be small, large, or nothing.
This model ties your fee to the funder's own economics. The key questions are how "net" is defined and whether you can see the inputs. For a comparison of split models, see 50/50 splits vs tiered grids.
Percentage of the funded amount
Some programs pay a percentage of the amount funded. The percentage can differ by product. Some programs tier it by volume. Many don't post their rates publicly. If you see a percentage, read the full terms. Check whether it is paid on the gross amount or a net figure, and whether renewals count.
Flat fee per funded deal
A flat fee pays the same amount for each funded deal, regardless of size. It is simple to track. It may also be lower than a percentage model on larger deals.
Per-lead and affiliate models
Affiliate programs sometimes pay per lead or per application. That is different from a referral fee. Per-lead pay is triggered by the lead itself. Referral fees are usually triggered by funding. Per-lead models can also bring their own marketing and disclosure rules. Know which model you're signing up for.
When you actually get paid
The trigger matters as much as the formula. Most programs pay on funded deals. An application, an approval, or a signed offer usually is not enough.
- Payout trigger. The deal funds and the funder or marketplace recognizes its revenue.
- Clawbacks. If a deal is reversed or unwound early, some agreements recover part or all of the fee. Read this clause carefully.
- Renewals and repeat funding. Some programs pay again when the same client renews or takes new funding. Others don't.
- Attribution. Programs track referrals with a unique link or code. Ask how long attribution lasts. Ask what happens if your client applies directly without your link.
- Payout timing. Programs pay weekly, monthly, or on another set schedule. Loanable's schedule is covered in referral partner payouts every Monday by ACH.
Are business loan referral fees legal?
Referral fees for commercial financing are generally permitted, with conditions. The conditions vary by state, by profession, and by loan program. This section is a high-level overview, not legal advice. Check the rules that apply to you before you accept a fee.
Disclosure to your client
Disclosure is the most consistent best practice. Tell your client, in writing, that you may be paid for the introduction. Say who pays you. Do this before you make the referral. Clients value transparency, and some rules require it.
State commercial-financing rules
Several states regulate commercial financing disclosures and who may receive compensation. New York's Commercial Finance Disclosure Law requires covered providers to give standardized disclosures for many commercial financings. Its regulation also addresses broker duties and broker compensation disclosure. See the New York Department of Financial Services announcement for an overview.
California's financing law also has rules on when licensed lenders may pay unlicensed referrers for commercial loans. Those rules limit what the referrer can do and require disclosures to the borrower. Other states have their own approaches, and rules change. For more on licensing, see broker commission and state licensing for marketplace partners.
SBA loans
SBA loans have their own rules for anyone paid in connection with a 7(a) or 504 loan. Fees paid to agents, including referral agents, are disclosed on SBA Form 159, the Fee Disclosure and Compensation Agreement. SBA's rules on agents are in 13 CFR Part 103. These rules are specific. Confirm how they apply with the lender before you accept any fee on an SBA deal. For program basics, see our SBA loans page and SBA 7(a) vs 504.
Professional rules
Some professions have their own limits. For CPAs, the AICPA Code of Professional Conduct includes a commissions and referral fees rule (section 1.520). At a high level, it restricts commissions when the firm performs certain attest services for that client. Where fees are permitted, it requires disclosure to the client. State boards of accountancy may add their own rules. See how to refer business funding as a CPA for more.
Insurance agents, real estate agents, and attorneys should check with their own licensing bodies. Your industry may have rules on referral pay that apply here too.
Taxes on referral fees
Referral income is generally taxable business income. In the U.S., payers commonly report payments to non-employee recipients on Form 1099-NEC when IRS reporting rules apply. See the IRS page About Form 1099-NEC for current guidance. Expect to provide a Form W-9 when you sign up. Keep your own records of fees received. Talk to a tax professional about how to report this income.
Red flags in a referral program
Most programs are straightforward. Watch for these warning signs before you sign up.
- Vague compensation formula. You can't tell how your fee is calculated or what "net" means.
- High minimum payout threshold. Your fees sit unpaid until you reach a large balance.
- No visibility into deal status. You can't see whether your referrals applied, were declined, or funded.
- Pressure to quote rates. The program asks you to quote rates or terms to clients.
- Pressure to collect sensitive data. The program asks you to collect full applications or credit information yourself.
- Approval promises. Marketing encourages you to tell clients they will be approved.
- Upfront fees. You have to pay to join or to stay active.
- No written agreement. There are no clear terms you can review and keep.
How Loanable's referral partner program works
Loanable is a marketplace, not a lender. We match business owners with 150+ lending partners across 30+ funding products. Partners underwrite, price, and fund.
- Free to join. There is no fee to become a partner.
- Unique partner link or code. Referrals that come through your link are credited to you.
- 50/50 split. Partners receive a 50/50 split of Loanable's net commission on funded deals.
- Weekly ACH. Payouts are sent by ACH on Mondays.
- No minimum payout. See no minimum payout for details.
- Real-time dashboard. Track referrals and deal status in one place.
Compensation depends on the funded deal and varies; Loanable does not guarantee any level of earnings, approvals, or funding.
Your clients can be matched across many financing types. See how it works for the borrower side. SaaS platforms can review embedded solutions. Brokers can see the broker program, and ISOs can see ISO partners.
Frequently asked questions
How much is a business loan referral fee?
It varies by program, product, and deal. Common structures include a share of the funder's or marketplace's revenue, a percentage of the funded amount, or a flat fee. Read the program's written terms to see exactly how your fee is calculated.
When are referral fees paid?
Most programs pay only after a referred deal funds. Payout timing depends on the program's schedule. Some agreements include clawbacks if a deal is reversed.
Do I need a license to receive a referral fee?
It depends on your state and what you actually do. Pure introductions are treated differently from brokering in many places. Rules vary, so check your state's requirements. This is not legal advice.
Do I have to tell my client I'm being paid?
Best practice is yes, in writing, before you refer. Some state rules, loan programs, and professional codes require disclosure.
Are referral fees taxable?
Generally, yes. Referral fees are usually taxable business income. U.S. payers commonly report them on Form 1099-NEC when IRS rules apply. Ask a tax professional about your situation.
Can CPAs accept referral fees?
Sometimes. The AICPA Code restricts commissions when the firm performs certain attest services for the client and requires disclosure where fees are permitted. State boards may add rules.
Do I get paid if my client is declined?
Generally, no. Most referral programs pay only on funded deals.
Ready to refer?
Referral fees work best when they're simple, disclosed, and tied to real outcomes for your clients. Read the terms. Tell your clients how you're paid. Let the funder handle underwriting and offers. When you're ready, become a Loanable partner. It's free to join.