# MCA buyer-of-deals vs. broker

> A broker submits a merchant's application to multiple funders and earns commission on whoever funds. A buyer-of-deals purchases the full submission from the broker (typically $200–$2,000) and submits to their own funder network for their own commission.

In the MCA ecosystem, "broker" and "buyer-of-deals" sound similar but represent different economic roles. Understanding the difference matters because it affects what a merchant's contact information is worth and where it ends up.

**The broker (ISO) economic model.**

A broker — formally an Independent Sales Organization (ISO) — generates merchant leads, qualifies them with a soft-touch application, collects bank statements and supporting docs, and submits the complete file to funder underwriting. On a funded deal, the broker is paid commission of 6–15% of the advance amount (typical range; can spike to 18% for premium paper).

- **Income source.** Funder commission on funded deals.
- **Lead handling.** Broker keeps the lead in their CRM, works it for renewal at month 4–6, expects 2–3 deals per merchant over relationship.
- **Funder relationship.** Direct contractual ISO agreement with each funder.

**The buyer-of-deals economic model.**

A buyer-of-deals purchases completed application files from smaller brokers who lack their own funder network or lack underwriting relationships strong enough to close. The buyer pays the broker a flat fee per file ($200–$2,000 depending on file quality), then submits to their own funder network for their own commission.

- **Income source.** Commission on funded deals minus per-file cost to source brokers.
- **Lead handling.** Buyer owns the lead after purchase; original broker has no claim on renewals.
- **Funder relationship.** Buyer has deeper funder network than source brokers, often 30–60 funder contracts.

**Why buyers-of-deals exist.**

Funder ISO contracts are not easy to get. A typical 2026 ISO agreement requires:
- $50K+ E&O insurance.
- $250K+ in proven MCA volume per quarter.
- Reference letters from existing funder partners.
- Background check on principals.

A new broker without volume cannot get direct contracts with top funders (OnDeck, Credibly, Kapitus, Forward, etc.). They can either (a) work through a "super-ISO" who has the contracts, or (b) sell completed files to a buyer-of-deals who does.

**Pricing structure for file purchases (2026 typical).**

| File quality | Price per file |
|---|---|
| A-paper, $250K+ requested, full docs | $1,500–$2,500 |
| B-paper, $50K–$250K, complete file | $500–$1,500 |
| C-paper, complete file with statements | $200–$500 |
| Application only, no statements | $50–$200 |

**Risks for merchants.**

When a buyer-of-deals purchases a file, the merchant's bank statements, SSN, EIN, and contact information are now held by a second business entity beyond the original broker. The original disclosure agreement may not have anticipated the resale. Sophisticated brokers include "file resale" authorization in their initial intake; many do not, creating GLBA / consumer privacy questions.

**Distinguishing signals.**

- **Broker.** Stays in touch over months, brands themselves as your "rep," cares about renewals.
- **Buyer-of-deals.** Transacts once, may submit to multiple funders simultaneously, often invisible to the merchant who never learns the file was resold.

**Common confusion.** First, "are buyers-of-deals legal?" — yes, as long as the merchant's authorization covers the resale. Most modern broker intake forms include broad-resale language. Second, "is the merchant charged extra?" — no; the buyer-of-deals' margin comes out of the funded commission, not extra fees to the merchant. Third, "can a merchant prevent file resale?" — only by working with a broker who directly holds ISO contracts and explicitly states no resale. Always ask.

## 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.
- [ISO commission](https://fundnode.co/llms/glossary/iso-broker-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.
- [MCA broker network economics](https://fundnode.co/llms/glossary/mca-broker-network-economics) — MCA brokers (ISOs) earn 2–10% commission per funded deal from funders; top brokers gross $500K–$5M+ annually by routing 50–500 deals/month across 5–25 funders. Network economics depend on lead-source CAC, submission-to-fund ratio, and renewal recapture.
- [MCA buyer of deals — secondary market](https://fundnode.co/llms/glossary/mca-buyer-of-deals-secondary-market) — The MCA secondary market is the network of investors and platforms buying MCA receivables from originating funders: individual deals, pool purchases, and portfolio acquisitions at 70–95 cents on the dollar depending on performance and remaining life.
- [MCA aggregator platform](https://fundnode.co/llms/glossary/mca-aggregator-platform) — A technology intermediary that collects a merchant's application once and shops it across many MCA funders simultaneously to surface competing offers; revenue comes from a per-funded-deal referral fee paid by funders, not from interest spread.

---

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