Glossary · Industry roles
ISO
In 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.
Also called independent sales organization, MCA broker, MCA ISO
The term comes from card processing, where independent sales organizations resell merchant accounts. In MCA, an ISO sources small businesses (from web forms, live transfers, mailers, UCC lists, referrals and renewals), collects the application and bank statements, works out which funders fit, submits to several of them and presents the offers.
ISOs are paid by the funder, usually as points on the funded amount, under an ISO agreement that also sets clawback terms. Some take merchant-paid fees too, which certain states restrict.
An ISO's day is a pipeline problem: many merchants, many funders, many statuses. That is what an MCA CRM is for. See CRM for MCA brokers and ISOs.
Track it on every deal
Statements, offers, positions and commissions with the math worked out, in one CRM for lending companies.
Related
- SolutionMCA brokers and ISOsA merchant cash advance CRM for ISOs and brokers: lead import, bank statement figures, lender matching, submissions, offers, commissions and renewals in one place.Read
- GuideHow to choose an MCA CRMWhat an MCA CRM should do, the questions to ask every vendor, a scoring sheet and the real first-year cost math for a broker or ISO shop.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
- GlossaryFunderA 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.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
- 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
- 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