Distinct from the broker or ISO, who sources the merchant and earns points without deploying capital. The top twenty funders by volume account for an estimated 50–60% of the market, with a long tail of regional and specialist funders behind them.
Related terms
ISO
A firm that sources merchants and places their files with funders, earning points on funded volume without deploying its own capital.
Syndication
Multiple parties each funding a portion of the same advance and sharing the returns and the risk proportionally.
Paper grade
An informal classification of merchant quality, from A paper — strong revenue, no positions, long trading history — down to C or D.