ISO (Independent Sales Organization)
An ISO (Independent Sales Organization) is a third-party broker organization that originates MCA deals on behalf of one or more funders — earning commission per funded deal — distributing capital across the merchant cash advance market without holding deal positions on its own balance sheet.
Why This Matters
ISOs are the dominant distribution channel in MCA. Rather than direct-to-merchant outreach by funders, ISOs run their own sales teams and submit deal packages to multiple funders, taking commission on what funds. Commission ranges typically 5-15% of funded amount, sometimes including residual percentage of holdback. Top ISOs maintain relationships with 5-15 funders to maximize approval rates across diverse merchant profiles. The ISO model lets funders scale distribution without building large in-house sales teams.
Frequently Asked Questions
Frequently Asked Questions
How do I become an MCA ISO?
Most funders have ISO application processes — typically requiring background checks, business documentation, agreement to compliance terms, and onboarding training. No license is required at the federal level for MCA brokering, though some states (California with CCFPL, New York) impose registration or disclosure obligations.
What does an MCA ISO earn per deal?
5-12% commission of funded amount on first-position deals; 3-8% on second-position. On a $50K deal at 8% commission, the ISO earns $4,000. Top ISOs fund 5-20 deals per month, generating $20K-$200K monthly commission. Residuals on renewals add ongoing income.