ISO & Broker Agreements
An ISO agreement in commercial lending is a contract between a financing firm and an Independent Sales Organization (ISO) or broker. It defines the relationship, how deals are submitted, how compensation is paid, and how both parties are protected.
In commercial lending, an ISO (Independent Sales Organization) is an entity that sources or originates business financing opportunities. The ISO agreement is the contract that governs the relationship between the ISO and the financing firm. It establishes how deals flow, who gets paid, and under what conditions.
ISO agreements vary by firm. Some are referral-style: the ISO introduces the prospect and the financing firm evaluates and places it. Others involve a broader scope—the ISO may collect documents, pre-qualify, or assist with the process. The agreement defines the scope and compensation. See the commercial lending ISO program for how one program structures this relationship.
Commercial lending ISO agreements typically address:
An ISO agreement and a commercial lending referral agreement overlap in purpose: both define the relationship between a deal source and a financing firm. The distinction is often one of scope and terminology.
Referral agreements typically cover introductions only—the referrer does not broker the loan. ISO agreements may involve a broader relationship where the ISO originates or processes deals. In practice, many programs use a single agreement (often called a referral agreement or ISO agreement) for brokers and ISOs. The Axiant referral agreement is used for ISO and broker partners.
Business loan brokers, ISOs, MCA shops, equipment financing brokers, and other deal sources typically sign ISO or referral agreements before submitting deals. The agreement is required—no signed agreement, no submissions. This protects both the financing firm and the ISO from disputes over compensation and ownership.
Brokers who send declined deals or have hard-to-place business loans often partner through such agreements. See where brokers send declined deals and business loan broker partnership for context.
Compensation is typically tied to successful placements. The ISO receives revenue share or commission when a deal closes and the financing firm receives its fee. Payment is usually issued within 30 days of funds received. No deal closes, no compensation—this aligns incentives.
Revenue share percentages vary. Many programs offer around 35% to ISO and broker partners. See commercial lending referral fees for how fees are structured. Clawback provisions may apply if a funded transaction later defaults.
Submit borrower and request details by email.
We evaluate the opportunity and identify possible funding paths based on multiple factors.
Partners stay informed throughout the process.
When a deal closes, partners may receive 35% revenue share per the agreement.
FAQ
An ISO agreement (Independent Sales Organization agreement) in commercial lending is a contract between a financing firm and an ISO or broker that defines the relationship, compensation, and protections. It establishes how the ISO introduces or originates deals and how they are paid when transactions close.
Compensation varies by agreement. Many ISO agreements provide revenue share or commission when deals close—often a percentage of the gross commission or revenue received. Payment is typically issued within 30 days of funds received. Compensation is based on successful placements.
ISO agreements may involve a broader relationship—ISOs sometimes originate or process deals. Referral agreements typically cover introductions only. Both define compensation and protections; the scope of activity may differ. Some programs use a referral agreement structure for ISO partners.
Yes. ISOs and brokers typically must review and sign the agreement before submitting any deals. The agreement defines compensation, protects both parties, and establishes the process. No signed agreement, no submissions.
Typical terms include compensation structure (revenue share or commission), payment timing, prospect protection, non-circumvention, clawback provisions for defaults, confidentiality, and agreement term. Terms vary by financing firm.
ISO or broker with deals to place?
Partners must review and sign the referral agreement before submitting opportunities.
