Glossary · After funding
Commission split
A commission split divides the commission a funder pays on a deal between the house, the closer and any sub-ISO or referral partner, by agreed percentages.
Also called rep split, ISO split, sub-ISO split, revenue share
Shops pay reps a percentage of the commission they bring in (a 30 to 50% rep split is common, though it varies widely) and pay referral partners or sub-ISOs their agreed share. Renewals and house leads often carry different splits.
Pay splits from commission actually received, not expected, and keep each split linked to the deal so a clawback can be passed through.
Formula
split $ = commission received × split % house keeps = commission received − all splits
Example
A $4,500 commission with a 40% rep split and a 20% referral split: rep $1,800, partner $900, house $1,800.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
Related
- FeatureCommissions and reconciliationTrack expected versus received commissions per funded deal, split them with reps and partners, handle clawbacks, and reconcile lender commission statements line by line.Read
- Free toolISO commission calculatorCalculate an ISO's commission on a merchant cash advance: base points, upsell from the buy and sell rate, commission basis, rep and partner splits and clawback exposure.Read
- GlossaryPointsPoints are ISO commission expressed as a percent of the funded amount: base points paid by the funder plus upsell points from selling above the buy rate.Read
- GlossarySub-ISOA sub-ISO is a smaller broker or agent that sends deals through a larger ISO instead of contracting with funders directly, and splits the commission.Read
- GlossaryClawbackA clawback is a funder taking back an ISO's commission because the merchant defaulted or stopped paying within a set window after funding, often 30 to 90 days.Read
- GlossaryISO agreementAn ISO agreement is the contract between a broker and a funder that sets commission rates, clawbacks, submission rules and restrictions before any deal is sent.Read