An independent sales organization (ISO) is a third party entity that represents a merchant cash advance company and other lending companies that sell merchant cash advance services for business finance. As a third-party agency, the role of an ISO in the merchant cash industry is to set up a partnership with different merchant cash advance companies to get, open business finances for small business owners who need the funding. The independent sales organizations reach an agreement with the borrowers and merchant cash advance companies that are properly licensed. This agreement lets the ISOs serve as a representative of any merchant cash advance lender which they have partnered.
Read More: An In Depth Explanation of ISO
The key objective of an independent sales organization is to sell the merchant services of a cash advance company. Note that the processing of payments is among the major duties of an ISO, they also play a vital role in matching the merchant cash services of a merchant cash advance company with small business. Note that the ISOs can as well provide business funding to small business owners, and therefore they can underwrite these deals. Due to these, the ISOs have an obligation to accept all the liabilities or risk linked to the services they offer. In most situations, you will find out that the larger independent sales organization enjoy the perks of reselling their services to startups independent sales organizations within the industry. The larger independent sales organization will deduct some fees for the services.
For a successful independent sales organization to offer its services, it must partner with a credit card processing company. Your company must also be a member of a MasterCard or VISA, for it to be allowed to sell their merchant cash advance services. In doing so, the ISOs must be registered by these associations so that they can process the transaction on behalf of its members. Note that the majority of businesses are accepting credit card transactions as their form of payment. For this reason, the demand for the independent sales organization in the merchant cash advance industry and business finance is always on the rise. The recent study indicates that independent sales organizations facilitate 80 percent of the merchant cash advance loans provided to small business owners.
With e-commerce becoming more global each day, it is evident that the demand independent sales organizations will continue to increase. This is because the majority of small business owners are now considering obtaining their business finance from merchant cash advance industry. Despite the size of the firm one operates, seeking the services of an independent sales organization when one needs business finance to expedite the process more than ever.