CPA Referral FAQ

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.

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.

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.

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.

Referral fees range from 2–5% of the funded advance amount (per your individual partner agreement). Examples:

• $50,000 advance at 3% = $1,500 fee
• $100,000 advance at 3% = $3,000 fee
• $200,000 advance at 4% = $8,000 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.

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.

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.

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 3 months of bank statements receive decisions fastest.

The standard document list:

• 3 most recent 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.

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.

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.

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.

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.

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.