ISO (Independent Sales Organization)
An ISO (Independent Sales Organization) is a third-party broker organization originating MCA deals on behalf of one or more funders — operating as the dominant distribution channel in the merchant cash advance market — earning commission per funded deal.
Why This Matters
ISOs are the engine of MCA distribution. 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 5-15% of funded amount, with residual percentage of holdback in some funder programs. Top ISOs maintain relationships with 5-15 funders to maximize approval rates across diverse merchant profiles. The ISO model lets funders scale distribution capital-efficiently without building large in-house sales infrastructure. Major MCA funders source 60-80% of deal volume through ISO networks.
Example
ISO submits $50K deal to Funder A at 8% commission. Funder A approves and funds. ISO commission: $4,000 wired same-day. Without ISO, Funder A would have spent $400-$1,200 in marketing/sales acquisition cost plus internal closer time — ISO model often delivers better unit economics for funders despite the commission expense.
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 federal license is required for MCA brokering, though some states (California's CCFPL, New York) impose registration or disclosure obligations on commercial finance brokers.
What does an MCA ISO earn per deal?
5-12% commission 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 for ISOs working portfolios long-term.