# ISO / MCA broker

> An Independent Sales Organization. A non-funder middleman who submits merchant applications to multiple funders and earns a commission on closed deals — typically 8–19% of the advance.

An ISO (Independent Sales Organization) is the standard middleman in the MCA distribution channel. They source merchants, submit applications to multiple funders, and earn a commission when a deal closes.

**How brokers earn.** Funders publish a commission scale to brokers. Typical 2026 ranges:
- New ISO, no track record: 5–8%.
- Mid-tier ISO with consistent funded volume: 9–13%.
- Top-producing ISO with $1M+/month funded: 14–19%.

The merchant rarely sees this number. The commission is baked into the factor rate the merchant pays. A merchant taking a 1.32 factor where a 1.25 was possible may be paying 7 points of broker margin.

**Why ISOs exist despite the markup.** Direct funder applications often miss programs the merchant qualifies for. A good ISO knows which funders accept which paper grades, which industries get auto-declined where, and which funders move fast on incomplete files. Most merchants do better through a good ISO than going direct to one funder — but only if the ISO is honest about commissions.

**How to find an honest ISO.**
- Ask explicitly: "What is your commission on this deal, and which funder is paying it?" A broker who refuses to answer is hiding the margin.
- Ask which funders they submitted to and what each one quoted. A broker who only shows one offer is single-funder and overpriced.
- Check the contract for a "broker disclosure" line.

**Fundnode is closer to a referral platform than a traditional ISO.** We score merchant profiles algorithmically, surface the top 1–2 funder matches, and disclose how we earn (referral fee, not factor-rate markup). See /trust for details.

## Related terms

- [Merchant cash advance (MCA)](https://fundnode.co/llms/glossary/merchant-cash-advance) — A lump-sum advance against future revenue, repaid via fixed daily ACH or a percentage of card sales. Legally a sale of future receivables, not a loan.
- [Factor rate](https://fundnode.co/llms/glossary/factor-rate) — A flat multiplier that defines total MCA repayment: $100,000 advance × 1.30 factor = $130,000 repaid. It is not an interest rate; it does not compound.

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Source: https://fundnode.co/glossary/iso-broker (HTML version)
Document: ISO / MCA broker — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.