ISO: Meaning in a Merchant Cash Advance
ISO stands for independent sales organization. In merchant cash advances, it means a company that finds businesses needing funding and sends their files to funders, earning a commission when a deal funds. Many brokers operate as ISOs.
What does ISO mean?
The term started in card processing, where ISOs sold merchant accounts for processors. In the MCA world it now describes brokers and sales offices that have signed agreements with one or more funders. An ISO gathers statements, sends the file, presents offers and stays in touch with the owner through funding and renewals.
Why does ISO matter to your business?
An ISO's value depends on how many funders it works with and how carefully it matches files to them. A good one saves you from sending your statements to a dozen places yourself. A poor one sends your file everywhere, collects inquiries and pushes whichever offer pays it most. Asking how the ISO is paid and which funders it uses tells you a lot.
What should you ask an ISO?
- How many funders do you send files to?
- Who pays your commission, and is it in the paperwork?
- Will you show me every offer, not just one?
How does Afterfirst work?
We're a broker. It's free to apply, the funder pays our commission on funding, and the amount is disclosed in the paperwork.
How is an ISO different from a referral partner?
A referral partner, like an accountant, usually introduces a client and steps back. An ISO manages the file through funding. Both can earn a commission from the funder, and both should say so plainly.
Where will you see it?
In funder agreements and industry discussions. On broker websites. In the paperwork, where the ISO's name sometimes appears as the broker of record.
Which terms are related to ISO?
The full list is in the glossary. Owners ask about this in Who is the actual funder on my MCA offer?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.