Glossary · Legal and compliance
ISO agreement
An 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.
Also called broker agreement, ISO contract, referral agreement
Funders generally require a signed ISO agreement before accepting submissions. It covers the commission schedule and basis, clawback windows, renewal commission, payout timing, exclusivity, confidentiality, state restrictions and conduct rules such as not shopping a deal outside the agreement.
Keep the key terms on each lender record (commission defaults, clawback days, renewal threshold), so the numbers you expect match what the funder pays.
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
- 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
- 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
- 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
- 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
- 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
- GlossaryRenewalA renewal is a new advance to a merchant who has paid down an existing one. It pays off the remaining balance, and eligibility usually starts at 40 to 60% paid in.Read