# ISO commission

> Percentage of the advance amount paid by the funder to the broker who sourced the deal. Typically 5–19% in 2026; baked into the factor rate the merchant pays.

ISO commission is the fee paid by an MCA funder to the broker (Independent Sales Organization) who sourced the merchant. It is the primary revenue mechanic for the MCA distribution channel.

**How it works.** The funder publishes a commission scale to brokers. When the broker closes a deal, the funder pays the commission out of the advance proceeds — meaning the merchant's $50,000 advance is effectively $50,000 + commission, even though the merchant only receives $50,000. The commission cost is recovered by the funder via a higher factor rate.

**Typical 2026 ranges.**
| Broker tier | Commission |
|---|---|
| New ISO, no track record | 5–8% |
| Mid-tier ISO, $500K-1M/mo funded | 9–13% |
| Top-producing ISO, $1M+/mo funded | 14–19% |

**The 19% extreme.** Greenbox Capital publishes its top commission tier as 19%, openly broker-friendly. This is great if you ARE the broker; the math from the merchant's perspective is that the factor includes ~19 points of broker margin.

**Why this matters to merchants.** A merchant who would have qualified for a 1.25 factor at a direct funder might pay 1.32 through a broker because the broker added 7 points of commission. Over a $50K advance, that is $3,500 extra fee paid by the merchant to fund the broker's commission.

**How to estimate broker margin in a quote.** Ask: "Are you the funder, or are you submitting to a funder?" If broker, ask: "What's your commission on this deal?" A broker who refuses is hiding the margin; a broker who says 8% is being honest and you can decide if their service is worth 8 points.

**Fundnode's economic alignment.** We earn a referral fee on closed deals, but we do not stack on factor-rate margin. We disclose the fee in /trust. Our incentive is to send merchants to funders that actually approve and fund cleanly, because deals that fail to fund pay us nothing.

## Related terms

- [ISO / MCA broker](https://fundnode.co/llms/glossary/iso-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.
- [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.
- [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.

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