Two distinct roles. Different obligations, different economics, different readiness requirements. An institution can be one, the other, or both — but the roles are not interchangeable.
In short
The Referring Member holds the customer relationship, identifies the credit need, and submits the opportunity — retaining source attribution and relationship protections without making the credit decision. The Funding Member underwrites, prices, and funds the referred credit within its own standards while operating under conduct rules that govern its relationship with the source institution's customer. An institution can hold one role, the other, or both — but the requirements for each are distinct.
Key takeaways
The Mainlynk Network has two primary member roles: the Referring Member and the Funding Member. They are structurally different, with different obligations, different economics, and different readiness requirements. An institution can hold one role, the other, or both — but the roles are not interchangeable, and the requirements for each are distinct.
The Referring Member is the source institution. It holds the customer relationship, identifies the credit need, and submits the opportunity through the Network's controlled workflow. The Referring Member does not make the credit decision. It retains the source attribution, the relationship protections, and the right to be informed of the outcome. The Referring Member's primary obligation is to submit opportunities accurately, completely, and within the scope of the applicable product schedule.
The Funding Member is the receiving institution. It reviews the submitted opportunity, makes the credit decision, and — if it approves — funds, closes, and services the credit. The Funding Member owns the credit risk, the lender-of-record relationship, and the compliance obligations that attach to both. The Funding Member's primary obligation is to make credit decisions responsibly, report outcomes accurately, and comply with the conduct standards that govern its relationship with the source institution's customer.
The readiness requirements for each role are different. A Referring Member must have the workflow infrastructure to identify and submit opportunities correctly, the relationship management practices to maintain the customer relationship through the referral process, and the governance framework to oversee the channel. A Funding Member must have the credit infrastructure, the operational capacity, and the compliance program required to originate and service the product type it is receiving.
Institutions that attempt to hold the Funding Member role without the required credit infrastructure create risk — for themselves, for the Referring Member, and for the customer. The Network's readiness assessment process exists to confirm that a Funding Member has the capability required before it begins receiving opportunities.
The distinction between the two roles is not administrative. It reflects a fundamental difference in what each institution is responsible for — and what it must be able to demonstrate to regulators, examiners, and the other members of the Network.
Unfamiliar with a term? See the Institutional Lending Network Glossary
Chuck Doherty
Founder, Mainlynk
Chuck Doherty founded Mainlynk to help community banks and credit unions build lending capability, govern technology decisions, and protect institutional relationships.
Editorial note
This article reflects Mainlynk's institutional perspective and analytical framework. It does not constitute legal, regulatory, or investment advice. Institutions should consult qualified counsel before acting on any information contained herein.
Factual and performance claims in this article are maintained in Mainlynk's internal claim-support records, including source, period, methodology, assumptions, and whether each claim is historical, projected, illustrative, or supplied by a third party. Member names, logos, testimonials, or data require approval.
A governed referral is not a handoff. It is a structured process with defined roles, required permissions, and recorded outcomes. The referring member's role does not end when the opportunity leaves.
Read articleRelationship protection is not a guarantee of customer ownership. It is a contractual framework that defines what a capital provider may and may not do with a referred customer.
Read articleThe economic case for a governed referral Network is not built on referral fees. It is built on the relationship value that would otherwise be lost when an institution cannot serve a credit request.
Read articleMainlynk
Mainlynk works with institutions on credit architecture, specialty product design, and the operating model required to execute at scale — without outsourcing the judgment.
