Merchant cash advance guide
MCA broker, ISO or direct lender: what's the difference?
If you're comparing merchant cash advance companies, brokers, ISOs and direct lenders, here's who does what, how each is paid, and the questions that tell them apart.
Who does what
Broker
Finds the business, gathers the application and statements, and sends the file to one or more funding companies. Paid a commission when the file funds.
ISO
A broker with a signed ISO agreement. Submits files under that agreement and is paid points set per file.
Direct funder
Underwrites the bank statements, sets the offer, signs the contract and sends the money.
Workable Funding
An underwriting desk that takes files from merchants and registered ISO partners, and funds directly or through its own capital partners under its contract.
Side by side
| Going through a broker or ISO | Going to a funding desk directly | |
|---|---|---|
| Who you talk to | Your broker | The underwriting desk |
| Paperwork | Application + 3 months of statements | Application + 3 months of statements |
| Pricing | Commission is built into the rate | Rate set per file |
| Best for | Businesses who want someone to shop and manage the file | Businesses who want one decision from the desk itself |
Common questions
What is the difference between an MCA broker, an ISO and a direct lender?
A broker introduces a business to a funding company and is paid a commission. An ISO (independent sales organization) is a broker with a signed agreement to submit files to a funding company. A direct funder underwrites the file and sends the money under its own contract. Workable Funding underwrites every file on its own desk and funds directly or through its own capital partners, under its contract.
Is it cheaper to go to a direct funder than a broker?
Not always. Broker commission is usually built into the factor rate, so the same business can see different pricing through different channels. Compare the total payback amount, the payment amount and frequency, and the term — not just who is offering.
How can I tell if a company is a real funder or a broker?
Ask who signs the funding contract, who underwrites the bank statements and who sends the wire. A funder can answer all three in writing. Be careful with anyone asking for an upfront fee before funding.
What does Workable Funding look at?
Business bank statements first: deposits, balances, existing positions and returned items. A complete file gets an answer in about 90 minutes during business hours, and funds typically land 48 to 72 hours after approval and signed contracts.
What does a merchant cash advance cost?
Factor rates are typically about 1.15 to 1.50, set per file, with terms of 3 to 12 months. For example, $50,000 at a 1.30 factor is $65,000 repaid.
I'm a broker. Can I submit files to Workable Funding?
Yes. Brokers and ISOs register free at workablefunding.com/iso-partners/register. Commission may be up to 12 points depending on the program and individual approval, confirmed in writing on every deal.
Related: What is a merchant cash advance · ISO partner program · Calculator · Funding answers
Questions? Email the desk.
Everything is handled in writing: hello@workablefunding.com.