When does a client get their money?

Approval decisions are typically made within 24–48 hours of a complete application. Once approved, funding is deposited within 24–48 additional hours. Most clients have money in their account within 3–5 business days from application.

Does referring a client affect my liability if the deal goes badly?

No. You are not a party to the funding agreement. Your role is limited to facilitating the introduction. T.A.G. is responsible for underwriting, disclosures, and the funding relationship. Include standard referral language in your engagement letter if you want additional documentation.

What if my client can't afford the payments?

Use the Client Qualification Checklist before referring. Clients who are already over-leveraged (3+ MCAs) or have NSF-heavy bank accounts should not be referred at this time. A well-qualified referral is less likely to experience payment difficulty.

CPA Referral FAQ — Compliance, Process & Fee Questions

Q: Is it ethical for a CPA to receive a referral fee for sending clients to a lender?

Yes, provided you disclose the referral fee arrangement to your client before making the referral. Most state CPA boards permit referral fees with written disclosure. The AICPA Code of Professional Conduct permits commissions when the client is advised in writing. A one-sentence disclosure in your referral email is sufficient.

Q: How much is the referral fee?

Referral fees are up to 2% of the funded advance amount, per your partner agreement. On a $60,000 advance at up to 2%, your fee is up to $1,200. Fees are paid within 5 business days of funding via ACH or check.

Q: Can I register even if I don't have a client ready right now?

Yes. Register now, receive your referral link, and keep it on hand. When a client comes up, you'll be ready immediately. Your referral link doesn't expire.

CPA Partner Resources

← Hub Referral Guide Client Checklist Revenue Calculator Toolkit

Compliance & Ethics

Is it ethical for a CPA to receive a referral fee for sending clients to a lender?

Yes — with disclosure. Most state CPA boards permit referral fees when the client is advised in writing before the referral is made. The AICPA Code of Professional Conduct (ET Section 1.520.001) permits commissions with written client disclosure. A single sentence in your referral email or engagement letter is typically sufficient. We recommend including the disclosure template from the Referral Guide.

This is general guidance. Your specific state CPA board may have additional requirements. Consult your board's published rules or your state society before your first referral.

Do I need to update my engagement letter?

Many CPAs add a single sentence to their engagement letter: "Our firm may receive a referral fee when we connect you with third-party financial service providers. We will notify you before making any such referral." This is a blanket disclosure that covers all future referrals. Alternatively, include the disclosure in each individual referral email. Either approach is generally acceptable — check your state board's preference.

Am I acting as a broker-dealer by referring clients to a lender?

No. Broker-dealer registration applies to securities (stocks, bonds, investment products). Referring a client to a business lender for a merchant cash advance — a commercial transaction — does not require securities registration. Many CPAs, attorneys, and financial advisors refer clients to lenders without any additional licensing. However, some states regulate commercial loan brokering separately. If you refer frequently and earn significant fees, review your state's commercial broker rules.

Does making a referral create a conflict of interest with my fiduciary duties?

A conflict only arises if the referral is not in the client's best interest. Use the Client Qualification Checklist to ensure you only refer clients who genuinely need and can sustainably afford working capital. If you're referring a client who needs $100,000 in 48 hours for payroll and has been denied by every bank, the referral serves the client. Disclose the fee, document your reasoning, and only refer when it's the right solution for the client's situation.

Fees & Payment

How much is the referral fee, and when is it paid?

Referral fees are up to 2% of the funded advance amount (per your individual partner agreement). Examples:

$50,000 advance at up to 2% = up to $1,000 fee
$100,000 advance at up to 2% = up to $2,000 fee
$200,000 advance at up to 2% = up to $4,000 fee

Payment is made within 5 business days of the advance funding date, via ACH bank transfer or check. You'll receive a written statement showing the funded amount, fee rate, and fee amount.

Do I receive a 1099 for referral fees?

Yes. T.A.G. issues a 1099-NEC to all partners who earn $600 or more in referral fees during the calendar year. You'll receive it by January 31 of the following year. Keep your W-9 on file with us and update it if your business entity or address changes.

What if my referred client gets a renewal advance — do I earn a fee again?

Yes. Renewal advances through your referral link earn another referral fee at the same rate. Well-qualified clients often renew every 6–12 months. A single strong referral can generate 3–5 funded events over a few years. Use the Revenue Calculator to model lifetime referral value.

The Process

How long does the application process take for my client?

From application to funding:

Application: 10–15 minutes online
Document submission (bank statements, ID): 10 minutes
Underwriting decision: 24–48 hours
Terms review and acceptance: client's pace
Funding deposit: 24–48 hours after acceptance

Most clients receive funds within 3–5 business days. Clients who submit a complete application with all 6 consecutive months of bank statements receive decisions fastest.

What documents does my client need to apply?

The standard document list:

6 consecutive months of business bank statements (all pages)
Government-issued photo ID (driver's license or passport)
Voided business check or bank letter for ACH setup
Basic business information: legal name, EIN, years in business

No tax returns, P&L statements, or business plans required for most advances under $150,000. Larger advances may require additional documentation.

How are advances repaid? Will daily payments disrupt my client's cash flow?

Merchant cash advances are typically repaid via daily ACH deductions from the business bank account, Monday through Friday. For a $60,000 advance with a 1.35 factor (total repayment $81,000) over 6 months: approximately $620/day. For qualified clients — those with steady daily deposits of $3,000+ — this is generally manageable. Use the Client Checklist to screen for deposit consistency before referring.

What happens if my client is declined?

If a client is declined, you will not receive a referral fee (fees are paid on funded advances only). Your client will receive a brief explanation of the decline reason from our team. Common reasons: insufficient monthly deposits, too many NSFs, too many existing MCA positions. The Client Qualification Checklist is designed to prevent most preventable declines.

Will my client know that I referred them and received a fee?

Your client will know you referred them because you're making the introduction directly. Whether they know the financial details of your fee arrangement is up to your disclosure practice. We recommend transparency: disclose the fee arrangement, explain that it doesn't affect the advice you provide, and let the client decide whether to proceed. Clients who are told upfront tend to trust the recommendation more, not less.

Getting Started

Can I register even if I don't have a client ready right now?

Yes. Register now, receive your referral link, and keep it available. When a qualifying client comes up, you're ready immediately. Your referral link never expires. Registration takes approximately 5 minutes at /affiliate.

Is there a minimum number of referrals required to stay active?

No minimum referral volume. Many CPAs make 2–4 referrals per year and earn $5,000–$15,000 in fees. Others refer more actively. There is no quota and no penalty for inactivity.

CPA Referral FAQ

More Questions? Talk to Our Partner Team.

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