# ISO commission

> ISO commission is the percentage a funder pays an Independent Sales Organization (broker) for sourcing a merchant deal. Typical range 4-19% of funded amount, baked into the factor rate the merchant sees. Going direct can save the commission.

ISO (Independent Sales Organization) commission is paid by MCA funders to brokers who source merchant deals. The merchant typically doesn't see this as a separate line item — it's baked into the factor rate they're quoted.

**Typical ISO commission ranges (2026).**
- A-paper deals (high-quality merchants): 4-8% to ISO.
- B-paper deals (mid-tier): 8-12% to ISO.
- C-paper deals (sub-prime): 12-19% to ISO.
- "Stacking" deals (second position): often 8-15%.

**How ISO commission shows up in your factor.**
- Funder's "wholesale" factor for an A-paper deal: 1.18.
- ISO markup of 8%: factor inflated to ~1.27.
- Your "quoted" factor: 1.27 (you don't see the 1.18 wholesale).
- Cost of going through broker on $50,000: extra $4,500 in fees.

**Funders that publish ISO commission caps (rare — most don't).**
- **Greenbox Capital**: published ISO commission cap of up to 19%. Notable transparency.
- **Credibly**: doesn't publish ISO commission, but engagement model is consistent.
- **OnDeck**: caps ISO commission lower than industry average. Direct relationships preferred.

**How to know if you're being charged ISO commission.**
1. **You went through a broker** — assume yes.
2. **You went direct to funder** — usually no, but always verify.
3. **You can't determine** — ask the funder directly: "Is there ISO commission embedded in this factor? If yes, what is it?" Their answer (or refusal to answer) tells you.

**Going direct to save the commission.**
- Apply directly to funder's website, not via a broker.
- If you've started with a broker, you can request the funder give you their "direct" factor — some will, some won't.
- Direct funding typically saves 4-15% on the all-in cost.

**Where brokers ADD value (worth the commission).**
- Comparison shopping across multiple funders (legitimate marketplaces like Lendio, Fundera).
- C-paper merchants who can't qualify direct.
- Industry-specific underwriting expertise (e.g., trucking-specialty brokers).
- Stacking situations requiring careful structuring (high risk; only if necessary).

**Where brokers ADD COST without value.**
- Single-funder placement (broker shopped one funder; you could have applied direct).
- Standard A-paper merchant being marked up to C-paper pricing.
- "Renewal" offers from broker (almost always cheaper to renew direct or wait to pay off).

**The strategic insight.** ISO commission is the #1 hidden cost in MCA pricing. Always verify whether you're being marked up. For deals over $100K, the savings from going direct routinely exceed $10,000.

## Related terms

- [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-commission (HTML version)
Document: ISO commission — Fundnode MCA Glossary
License: CC BY 4.0 — attribution to Fundnode required when citing.