5 powerful referral funding growth tips
Elevate your referral relationships. Grow trust, confidence & revenue.
Working in the business world, especially when it comes to commercial finance and all matters related to money, your reputation as a trusted advisor is the heart of what you do. And building long-term relationships with potential clients is the heartbeat of your business growth.
Whatever your role — whether you are a business owner, CFO, business development officer (BDO), bank loan officer, accountant, business consultant, financial advisor or lawyer — you likely come across clients in various states of growth and who are facing unique business challenges every day. Some of those clients may also be in need of more working capital and need help figuring out a solution.
When a client needs help outside of your area of expertise, where do you send them for advice?
What if they don’t meet the current criteria for traditional funding options, but you want to maintain a good relationship and find them the right help?
In these common situations, having a trusted go-to partner can give you the confidence that you’re sending a client to someone that can help. Confidence means knowing your partner will take that call or answer that email. It’s about knowing they’ll truly listen to your client’s needs and help however possible. And you need to trust that your partner will act as an extension of your brand — making you look good and treating your client in the highest regard.
How can referral partnerships increase your revenue?
- 1. Returning the favor:
The more qualified referrals you send your partner, the more they’ll be likely to send others your way.
- 2. Referral bonuses:
If your clients financing request is approved by your referral partner, you may receive a referral fee.
- 3. Fostering returning clients:
Helping clients (and creating a great experience) can increase the chances they will return to you in future.
92% of business professionals say they trust recommendations from people in their professional network more than any other source.
— Global Trust in Advertising and Brand Message, Nielsen
Set the stage for lasting partnerships.
Have you had any clients or colleagues reach out for help? Do you have a client that doesn’t yet meet the minimum requirements needed to access funding? Or perhaps there is someone in your professional network who you think could benefit from alternative business financing?
If you aren’t able to help that client with their specific business challenge, or you’re not able to provide financing if that’s what they need, you may still be able to help your client secure the funding they need by partnering with a referral partner who specializes in alternative business funding.
Working with a referral partner who specializes in alternative business funding can help you grow your business and maintain your reputation as a trusted business financing advisor. However, recommending a client (or potential client) to another business partner can be a daunting task. Your reputation, your business and your future success are at stake.
Choose wisely and your new referral partner can help you take your business to the next level in unexpected ways and help you keep a stellar professional reputation.
How can alternative business funding partners help grow your business?
- 1. You gain access to a network of experts who can provide quality advice.
- 2. Open the door to networking opportunities and potential partnerships.
- 3. Unlock funding options for your clients that would not have otherwise been possible.
- 4. Extend your geographic footprint.
“Give more in value than you can take in payment.” — Bob Burg, The Go-Giver
#1. Your needs align.
At the core of any referral relationship is a mutual understanding of one another’s needs. It’s crucial to a successful partnership that everyone’s goals, values, missions and business needs are aligned.
This helps all parties reach their goals and ensures that everyone’s expectations are met. As in any relationship, if one side is feeling left out, then the relationship is bound to fail.
Both you and your referral partner also need to have a balanced relationship. If one side of the partnership isn’t pulling their weight or upholding their end of the agreement, then there will be an inevitable breakdown in the relationship. This can hurt not only your reputation but also directly affect your client’s business.
If your client has a great experience with your referral partner, they will remember how you were able to provide them with an alternative resource and there is a greater probability that they will seek you out for future projects.
Business situations change constantly, so it’s important to keep existing clients and prospects on your radar. Even if you can’t directly help them now, you may be able to work with them in the future.
#2. Honesty and transparency.
When you’re choosing a referral partner, it’s important to work with those who are transparent and honest about their business practices. They could have direct contact with a business’ customers and will have insight into sensitive information about strategic operations.
Research potential partners carefully, and be sure to ask the right questions before you start to refer your clients.
Top Questions for a Potential Referral Partner
- 1. What kind of funding solutions do they offer?
- 2. What are their terms and rates?
- 3. How long have they been in business?
- 4. How are they funded?
#3. Responsive & great communicators.
A major business challenge, including the need for funding, can come about quickly and unexpectedly. Choosing a referral partner who is responsive will give you (and your clients) peace of mind when unpredicted situations arise.
You work hard to cultivate your client list and your professional reputation. As the old saying goes, “You are the company you keep.” Choosing a referral partner who is responsive and has an innate understanding when a situation requires a phone call, an in-person meeting or an email will help create a frictionless relationship.
Keep the lines of communication open and flowing freely.
Regular communication is also important for maintaining an open dialogue. Follow-up with your referral partner after you’ve passed on a referral and expect they will be equally responsive.
Booking monthly or quarterly meetings will help you to better identify clients that could benefit from an introduction and help build a stronger relationship between you and your referral partner.
It’s also important to follow-up with your clients about their experience with your referral partner. This will allow you to ensure that your partnership is providing value and protects your reputation.
“Setting a recurring time and date will help facilitate talking about any problems that arise.” — Stephen Key, Co-founder of inventRight and author of One Simple Idea Series.
#4. Experienced industry experts.
Every industry comes with its own unique needs, so finding a referral partner who can help your clients in their sectors is essential. When deciding to send a client to your referral partner, you will want to consider if your chosen partner’s industry experience and knowledge matches the expectations of your client.
A good referral partner needs to have expertise in their field to deliver results. Before entering into a partnership, take the time to research your partner. Are they a thought-leader in their field? Do they produce regular content that shows they are at the forefront of their industry?
Most importantly, will they uphold your reputation if you send them clients?
Did you know?
Liquid Capital has been funding businesses for over 20 years.
We can approve fundings in as little as 24 hours.
Liquid Capital has deployed over $3 billion in working capital in more than 35 industries.
#5. Results-driven professionals.
You work hard for your clients — so you should choose a referral partner who will work equally as hard for the clients that you send them. Do your research and take the time to get to know a potential referral partner to determine if they are results-driven.
Following this simple checklist can help you perform your own due diligence:
- • Ask for references: Contact at least three people who are either clients, partners or have worked with your potential partner in a similar capacity.
- • Follow-up and speak with each reference: People often skip this step, but you can uncover much more information (positive and negative) with a personal phone call.
- • Review their website: Checking for legitimacy of information, phone numbers, “about” pages and links. Are there any discrepancies or red flags?
- • Check their reviews: Third-party reviews, ratings sites and forums can tell you a lot — but comments and personal reviews can also be flooded with subjectivity, and people are far more likely to add a negative review than a positive. Take a look and scan for general feedback and sentiment.
- • Review their social media accounts: Are they active and do they have a good following? Have they invested in establishing their brand and building up a credible reputation that they care about? These can be good indicators they’re doing well and customers trust them.
- • Check the Better Business Bureau: The BBB has a vision to encourage “an ethical marketplace where buyers and sellers trust each other.” Reviewing an organization’s status can also be an indicator that they have potential to be a good business partner.
Watch out for these red flags:
- 1. Too good to be true
- 2. They hide facts about how they work
- 3. They don’t have the references to back them up
Serious businesses need a serious funding partner. When you work with Liquid Capital you get:
You will get fast financing. Approved clients often receive fundings in under 24 hours.
No hidden terms
You will never be surprised by hidden terms and will never be constricted by complicated provisions. Transparency is key.
You will get a strategic consultation that factors in your unique needs. We’ll help you identify and explore your options — and the final decision is always yours.
Trust and capability
You will gain a strong partner for your financing growth. We’ve deployed over $3 Billion in working capital across North America.