Glossary · Industry roles
Funder
A funder is the company that underwrites and pays out a cash advance or business loan. ISOs submit deals to funders and are paid commission when they fund.
Also called direct funder, MCA funder, lender, MCA lender
Direct funders buy receivables or lend from their own capital or a credit facility. Most run an ISO department with a submission email or portal, publish guidelines (minimum revenue, time in business, positions, restricted industries and states), and pay commission under an ISO agreement.
Many funders also offer term loans, lines of credit, SBA or equipment programs, so one funder can have several programs with different criteria. Keep each program's box separately.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
Related
- FeatureLender matchingStore every lender's criteria once and see which lenders each deal qualifies for, with the rule behind every pass, warning and fail. Built for MCA and business lending.Read
- SolutionMCA fundersA CRM for merchant cash advance funders working ISO submissions: intake, statement figures, underwriting notes and conditions, offers, remittance tracking and renewals.Read
- GlossaryISOIn merchant cash advance, an ISO (independent sales organization) is the broker that finds merchants, packages their files and submits them to funders for a commission.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
- GlossaryPaper gradePaper grade is shorthand for deal quality, A through D. A paper has strong revenue, credit and statements and gets the lowest factors; D paper is the riskiest.Read
- GlossarySyndicationSyndication is when investors fund part of an MCA alongside the funder and receive a matching share of the payments, minus fees, as the merchant pays.Read
- GlossarySubmission packageA submission package is the email or upload an ISO sends a funder: the application, bank statements, MTD, ID and voided check, with a clear subject line and summary.Read