Frequently Asked Questions

In most states, insurance agents may receive referral fees for referring clients to non-insurance products like working capital financing. The key analysis is whether the referral is for an insurance product: working capital financing is not insurance, so insurance-specific fee restrictions typically do not apply.

That said, state rules vary. Critical considerations before participating:

• State insurance code: Some states require disclosure of referral fee arrangements; others have no specific rule for non-insurance referrals
• Carrier agreements: Your carrier's agent agreement may restrict outside business activities independently of state law: review before participating
• E&O coverage: A referral to a non-insurance financial product typically falls outside your E&O coverage scope: no special coverage is needed, but confirm with your E&O carrier if uncertain

Consult your state's Department of Insurance or a compliance professional if you have specific concerns.

Whether required by your state or not, disclosure is a best practice. It protects your professional relationship and eliminates any potential appearance of undisclosed compensation. A simple verbal or written disclosure is sufficient:

"I have a referral relationship with T.A.G. Business Funding and may receive compensation if you choose to work with them. This does not affect the terms of your funding or your relationship with me as your insurance agent."

T.A.G. can provide a written disclosure template on request through the partner portal.

A referral to a non-insurance financial product is not an insurance transaction. You are not advising your client on working capital financing in any professional capacity: you are making an introduction. The distinction matters:

• You are not recommending a specific funding amount or product
• You are not completing any part of the application
• T.A.G. handles all underwriting and disclosure requirements
• The client makes their own decision about whether to apply

This is a referral, not advice. The same principle applies as referring a client to an accountant or attorney: a natural professional extension, not a breach of your role as an insurance agent.

T.A.G. pays your referral fee from its own compensation on the transaction. The client does not pay more because there is a referring partner. The client's funding cost is set based on their business profile, not on whether a referral partner is involved.

You are notified when your referred client funds. T.A.G. pays your fee (up to 2% of the funded advance) within 5 business days of the funding date. Payment is made via ACH or check based on your preference set during registration. T.A.G. provides a 1099-NEC at year end for referral income over $600.

T.A.G. contacts your client directly to walk them through the application. The process from introduction to funding depends on how quickly your client's file is complete, and decision and funding timing are set by the funding provider after review. Your client's experience:

• Short application (typically under 15 minutes)
• Request for 6 consecutive months of bank statements
• Underwriting review, with timing set by the funding provider
• Offer presented with full terms before any agreement
• Funds deposited directly to business bank account

T.A.G. does not cross-sell insurance, adjust your client relationship, or contact your client about anything outside of the funding process.

If your referred client is not approved, no fee is paid and there is no negative impact on you. T.A.G. handles the decline process directly with the client. The referral partnership continues unchanged.

To minimize the chance of a decline, use the Client Qualification Checklist before referring. Pre-qualified referrals have a significantly higher approval rate.

No. Working capital financing is separate from commercial insurance. T.A.G. does not sell insurance, adjust claims, or provide any service that competes with your role as an agent. The referral relationship is purely additive: it allows you to offer an additional resource to clients at moments when they have a need that insurance does not directly address.