Used interchangeably with "broker", though ISO often implies a larger operation holding direct funder agreements with sub-brokers submitting through it. ISOs and brokers together originate an estimated 70–80% of all MCA volume.
Full guide
What is an ISO in merchant cash advance?Where brokers, ISOs and funders actually sit, and who gets paid what.
Related terms
Points
The broker or ISO commission on a funded advance, expressed as a percentage of the funded amount.
Syndication
Multiple parties each funding a portion of the same advance and sharing the returns and the risk proportionally.
Submission
A completed merchant file sent to a funder for underwriting.
Funder
The party that deploys the capital in a merchant cash advance and carries the risk of repayment.
Broker agreement
The contract between a broker or ISO and a funder governing submissions, commission and conduct.