Sub-ISO
A sub-ISO is an independent sales organization operating under a master ISO's funder relationships — submitting deals through the master ISO's portal infrastructure and operating without direct contractual relationships with funders.
Why This Matters
Sub-ISO status is the entry point for most new MCA brokers. The model: sub-ISO partners with established master ISO who provides funder access, deal-submission portal, training resources, and back-office support in exchange for override commission on sub-ISO volume. Sub-ISOs avoid the operational complexity of direct funder relationships while accessing competitive buy rates through master ISO scale. The trade-off: lower per-deal commission than direct master ISO economics. Many successful sub-ISOs eventually graduate to master ISO status as volume scales.
Frequently Asked Questions
Frequently Asked Questions
How do sub-ISO commissions compare to master ISO commissions?
Sub-ISOs typically earn 70–85% of master ISO commission, with master ISO retaining 15–30% override for infrastructure and funder-relationship value. Strong sub-ISOs negotiate higher splits (85–90%) at scale.
Should new MCA brokers start as sub-ISOs or build direct funder relationships?
Start as sub-ISOs unless capitalized for direct funder relationship development (typically 12+ months and $250K+ in operations capital). Sub-ISO status accelerates time-to-revenue without infrastructure investment burden.